1、Technovation 24 (2004) innovation systems of Taiwan and China: a comparativeanalysisPao-Long Changab, Hsin-Yu ShihaaInstitute of Business and Management, National Chiao Tung University, 4F, 114, Sec.1, Chung-Hsiao W. Road, Taipei 100, TaiwanbDepartment of Business Administration, Feng Chia Universi
2、ty, 100 Wen-Hwa Road, Taichung 407, TaiwanAbstractThis paper presents an analytical framework to compare two distinguishing innovation systems. For recognizing the structuralcharacteristics of innovation systems, six major functions of generic types of institutions involved in the systems are examin
3、ed: policyformulation, performing R Taiwan; China; Institution; Research and development; Science and technology; Cooperation1. IntroductionThe Chinese Civil War resulted in the political separ-ation of Taiwan and China in 1949. Taiwan followed thewestern model, adopted capitalism and implemented af
4、ree market economy, while China followed the Sovietmodel, adopted communism and implemented a planned,centralized economy. Similar to the situations of Southand North Korea, and of West and East Germany beforeunification, such differences in economic and politicalsystems have led to big differences
5、in the national inno-vation systems (NISs) and their performances (Chung,2001). Taiwans economy clearly surpassed that ofChina from the 1950s through the 1980s. However, theimplementation of economic reforms since the late1970s has seen China become a rapidly developingeconomy enjoying a high econom
6、ic growth rate, e.g.7.1% in 1999; 8.0% in 2000 (National Bureau of Stat-Corresponding author. Tel.: +886-2-23494930; fax: +886-2-23494931.E-mail address: paolongcc.nctu.edu.tw (P.-L. Chang).0166-4972/$ - see front matter 2002 Elsevier Ltd. All rights reserved.doi:10.1016/S0166-4972(02)00117-7istics,
7、 2001). In contrast, Taiwans economic perform-ance has been deteriorating recently. Meanwhile, theTaiwans government allowed its citizens to travel tomainland China to visit relatives in 1987, opening upinteraction between the two sides. Besides visiting rela-tives and traveling, many of Taiwans com
8、panies usedthe newly opened links to invest in mainland China,forcing policymakers on both sides to accelerate theschedule of exchange-related policies. According to thestatistics of Taiwans Ministry of Economic Affairs(MOEA), the total number of Taiwans companiesinvesting in mainland China as of 20
9、01 was 51,258, witha declared total investment of US$55.47 billion(Industrial Development and Investment Center, 2002).Taiwan is Chinas fourth largest source of foreign invest-ment, trailing only Hong Kong, the US, and Japan. How-ever, since many of Taiwans companies invest in main-land China via su
10、bsidiary companies registered in thirdcountries such as the Virgin Islands, HK, Singapore, andso on, the real scale of Taiwans investment in mainlandChina is significantly higher than the official statistics.The main result of the large and increasingly businessoriented interaction between Taiwan an
11、d China is530 P.-L. Chang, H.-Y. Shih / Technovation 24 (2004) 529539increased economic growth for both sides. As economicactivity becomes more knowledge-intensive, economicgrowth becomes increasingly dependent on the accumu-lation of knowledge, which itself mainly results frominnovations. Therefore
12、, given their common language,culture, race and history, plus their geographical proxim-ity, Taiwan and China have been and will continue toinfluence and even cooperate with each other in scienceand technology (S Kumaresan and Miyazaki,1999; OECD, 1999). The performance of NISs largelydepends on how
13、 these actors, which include government,enterprises, universities, public and private researchinstitutes, bridging institutes, and other contributinginstitutions, function and interact with each other todevelop and apply innovative knowledge. Therefore, thefunctions and the interactions of instituti
14、ons involved inNISs are the main contexts of studying NISs, and thusthis study examines them as the two analytical and com-parative dimensions.Regarding the institutions involved in NISs and theirfunctions, Capron et al. (2000) suggest that four groupsof actors are involved in NISs, that is, the adm
15、inistrativeorganizations that formulate and co-ordinate the S second, numerous officials alsoserve simultaneously as managers in enterprises, hencethere would be much conflict between their two differentroles; third, the realizable benefits from start-up cannotsatisfy entrepreneurs; fourth, managers
16、 serve for fixedterms, and so lack the incentives and motives to engagein innovation.3.2. Interactions of institutions3.2.1. R Dr Xielin Liu, NationalResearch Center of Science and Technology for Devel-opment, China; Mr Xiaoye Cao of Chinese Academy ofSciences; Dr Rongping Mu and Dr Yibing Duan of I
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31、cePress, Beijing.Venture Economics, 2000. Taiwan Venture Capital Association Year-book 2000. Thomson Financial Press, Newark.Pao-Long Chang is a professor at the Institute of Business and Manage-ment, National Chiao Tung University, Taipei, Taiwan. Currently, he isvisiting at Feng Chia University, T
32、aichung, Taiwan, as a chair professorof Business Administration. He received a BS in Mathematics from Fu-Jen Catholic University in Taiwan, and a MA in Mathematics from StateUniversity of New York at Albany and a PhD in Mathematics from theUniversity of Washington in USA. His previous articles have
33、appeared inthe Journal of the Operational Research Society, Journal of Environmen-tal Management, Computers and Operations Research, Industry and Inno-vation, International Journal of Production Economics, Technovation,International Journal of Technology Management, IEEE Transactions onEngineering M
34、anagement and IEEE Transactions on SemiconductorManufacturing among others. His current research interests are in the areasof Technology Management and Operations Research.Hsin-Yu Shih is a PhD candidate at the Institute of Business and Manage-ment, National Chiao Tung University, Taipei, Taiwan. He
35、 received aBEng in Chemical Engineering from National Taiwan University in Tai-wan, and an MBA from National Sun Yat-Sen University in Taiwan. Hisresearch interests center on management of technology and innovation. Hisindustrial background includes eight years experience in the informationindustry, working in product development and strategy planning in botha Taiwanese and Chinese based information firm.