From “Made in China” to “Innovated in China”: Necessity, Prospect, and Challenges
评估中国从低工资优势转向创新驱动增长的可能性，发现研发投入和专利增长显著，但资源错配（国企多补贴、私企多创新）制约了创新速度。
After more than three decades of high growth based on its low-wage advantage and relatively favorable demographics—in combination with market-oriented reforms and openness to the world economy—China is at a crossroads with a much higher wage and a shrinking work force. Future growth will depend, by necessity, more on the generation of increased productivity, and domestic innovation will play an important part in this. In this paper, we assess the likelihood that China can make the necessary transition. Using data on expenditure on research and development, and patent applications, receipts, and citations, we show that the Chinese economy has become increasingly innovative. We will argue that rising wages and expanding markets are among the important drivers of China's growth in innovation. On the other hand, we find evidence of resource misallocation in the innovation area: while state-owned firms receive more subsidies, private firms exhibit more innovation results. Innovation can presumably progress even faster if resource misallocation can be tackled.