Abstract
This chapter discusses the role of the state in facilitating innovation and industrial development. An overview is given of theoretical research on the importance of government support on innovation and technology upgrading. Both strengths and weaknesses with regards to state intervention activities are explored by summarizing empirical evidence. It then addresses the facilitating role of the state in cultivating emerging high-tech industries and promoting corporate innovation in both developed and emerging economies. Finally, a discussion is made of industrial and innovation policies in China from a historical and dynamic perspective. Grounded in our discussions, we offer key implications for theory and practice, and suggest that despite uncertainty in policy impacts, the state in emerging economies should not only work on overcoming market failures in most industries, but also actively create and shape markets in newly emerged and innovative industries.
| Original language | English |
|---|---|
| Title of host publication | The Oxford Handbook of State Capitalism and the Firm |
| Publisher | Oxford University Press |
| Pages | 365-383 |
| Number of pages | 19 |
| ISBN (Electronic) | 9780198837367 |
| DOIs | |
| Publication status | Published - 1 Jan 2022 |
Keywords
- emerging economies
- facilitating state
- government support
- innovation
- technology upgrading
ASJC Scopus subject areas
- General Social Sciences
