10 The Coordinating Role of Chinese Policy Actors in Developing New Biotechnology Start Up Companies to Promote Industrial Development

  • Åse Linné
  • Tommy Shih


All around the world there is an increased understanding among policymakers that the establishment of start-up companies is the backbone of future economic growth. It is argued that the development of new companies can increase the innovation rate and contribute to industrial change. This belief is also championed by the Chinese government, which has especially emphasised the possibility of start-up companies to facilitate the establishment and development of strategically important industries. The promotion of high-tech industries already started in the late 1980s; however, since the 1990s, policy attention towards developing some strategically important sectors has been apparent.


Chinese Government Industrial Development Policy Actor Business Group Business Network 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Aaboen, L., Dubois, A., & Lind, F. (2013). Strategizing as networking for new ventures. Industrial Marketing Management, 47, 1033–1041.CrossRefGoogle Scholar
  2. Aaboen, L., Laage-Hellman, J., Lind, F., Öberg, C., & Shih, T. (2016). University start-ups and their roles in networks. Industrial Marketing Management. Available online. Google Scholar
  3. Besson, M. (2009). Developmental states in East Asia. A comparison of the Japanese and Chinese experiences. Asian Perspectives, 33, 5–39.Google Scholar
  4. Cao, C., Simon, D. F., & Suttmeier, R. P. (2009). China’s innovation challenge. Innovation: Management, Policy and Practice, 11, 253–259.CrossRefGoogle Scholar
  5. Child, J. (1994). Management in China during the age of reform. Cambridge: Cambridge University Press.Google Scholar
  6. Ciabuschi, F., Perna, A., & Snehota, I. (2012). Assembling resources in the formation of a new business. Journal of Business Research, 65, 220–229.CrossRefGoogle Scholar
  7. Conlé, M., & Taube, M. (2012). Anatomy of cluster development in China: The case of health biotech clusters. Journal of Science and Technology Policy in China, 3, 124–144.CrossRefGoogle Scholar
  8. Dornberger, U., & Zeng, X. (2009). The locational factors and performance of the high-tech startups in China. International Journal of Entrepreneurship and Small Business, 7, 312–323.CrossRefGoogle Scholar
  9. Dubois, A., & Gadde, L.-E. (2002). Systematic combining: An abductive approach to case research. Journal of Business Research, 55, 553–560.CrossRefGoogle Scholar
  10. Eun, J. H., Lee, K., & Wu, G. (2006). Explaining the “University-run enterprises” in China: A theoretical framework for university–industry relationship in developing countries and its application to China. Research Policy, 35, 1329–1346.CrossRefGoogle Scholar
  11. Ford, D., & Mouzas, S. (2013). Service and value in the interactive business landscape. Industrial Marketing Management, 42, 9–17.CrossRefGoogle Scholar
  12. Gu, S. (1999). China’s industrial technology, market reform and organizational change. London: Routledge in association with the UNU Press.Google Scholar
  13. Gu, S., & Lundvall, B.-Å. (2006). China’s innovation system and the move towards harmonious growth and endogenous innovation. Innovation: Management, Policy & Practice, 8, 1–26.Google Scholar
  14. Håkansson, H., Ford, D., Gadde, L-E., Snehota, I. and Waluszewski, A. (2009) Business in networks, Chichester, UK: Wiley.Google Scholar
  15. Håkansson, H., & Snehota, I. (1995). Developing relationships in business networks. London: Routledge.Google Scholar
  16. Håkansson, H., & Waluszewski, A. (2002). Managing technological development: IKEA, the environment and technology. London: Routledge.CrossRefGoogle Scholar
  17. Halinen, A., & Törnroos, J.-Å. (2005). Using case methods in the study of contemporary business networks. Journal of Business Research, 58, 1285–1297.CrossRefGoogle Scholar
  18. Harrison, D., Holmen, E., & Pedersen, A.-C. (2010). How companies strategise deliberately in networks using strategic initiatives. Industrial Marketing Management, 39, 947–955.CrossRefGoogle Scholar
  19. Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18, 165–187.CrossRefGoogle Scholar
  20. Hoskisson, R., Eden, L., Lau, C. M., & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43, 249–267.Google Scholar
  21. Huang, C., Amorim, C., Spinoglio, M., Gouveia, B., & Medina, A. (2004). Organization, programme and structure: An analysis of the Chinese innovation policy framework. R&D Management, 34, 367–387.CrossRefGoogle Scholar
  22. Huang, L. F., & Snell, R. (2003). Turnaround, corruption and mediocrity: Leadership and governance in three state owned enterprises in Mainland China. Journal of Business Ethics, 43, 111–124.CrossRefGoogle Scholar
  23. Hyytinen, A., Pajarinen, M., & Rouvinen, P. (2015). Does innovativeness reduce startup survival rates? Journal of Business Venturing, 30, 564–581.CrossRefGoogle Scholar
  24. Johnson, C. (1982). MITI and the Japanese miracle: the growth of industrial policy 1925–1975, California: Stanford University Press.Google Scholar
  25. Kroll, H., & Liefner, I. (2008). Spin-off enterprises as a means of technology commercialisation in a transforming economy—Evidence from three universities in China. Technovation, 28, 298–313.CrossRefGoogle Scholar
  26. Krug, B. (2012). Political embeddedness in China. In G. Morgan & R. Freeman (Eds.), Capitalisms and capitalism in the twenty-first century (pp. 345–365). Oxford and New York: Oxford University.CrossRefGoogle Scholar
  27. La Rocca, A., Ford, D., & Snehota, I. (2013). Initial relationship development in new business ventures. Industrial Marketing Management, 42, 1025–1032.CrossRefGoogle Scholar
  28. Lazonick, W. (2004). Indigenous innovation and economic development: Lessons from China’s leap into the information age. Industry & Innovation, 11, 273–298.CrossRefGoogle Scholar
  29. Lee, C., Lee, K., & Pennings, J. M. (2001). Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22, 615–640.CrossRefGoogle Scholar
  30. Liu, L. (2008). Local government and big business in the People’s Republic of China—Case study from Shandong Province. Asia Pacific Business Review, 14, 473–489.Google Scholar
  31. Liu, X.-L., & White, S. (2001). Comparing innovation systems: A framework and application to China’s transitional context. Research Policy, 30, 1091–1114.Google Scholar
  32. Liu, F. C., Simon, D. F., Sun, T. Y., & Cao, C. (2011). China’s innovation policies: Evolution, institutional structure, and trajectory. Research Policy, 40, 917–931.Google Scholar
  33. Linné, Å., & Shih, T., (2013). The Political Embeddedness of Business Networks in a Chinese Context: The Case of a Biopharmaceutical Business Network”. IMP Journal, 7, 180–187.Google Scholar
  34. Low, B., and Johnston, W. (2008), Securing and managing an organization’s network legitimacy: The case of Motorola China, Industrial marketing Management, 37, 873–879.Google Scholar
  35. Low, B., & Johnston, W. (2010). Organizational network legitimacy and its impact on knowledge networks: The case of China’s TD-SCDMA mobility technology. Journal of Business & Industrial Marketing, 25, 468–477.CrossRefGoogle Scholar
  36. Lu, Q. (2000). China’s leap into the information age: Innovation and organization in the computer industry. New York: Oxford University Press.CrossRefGoogle Scholar
  37. Mathews, J.A., & Cho, D.S. (2000). Tiger Technology: The Creation of a Semiconductor Industry in East Asia. Cambridge: Cambridge University Press.Google Scholar
  38. McGregor, J. (2012). No ancient wisdom, no followers—The challenges of Chinese authoritarian capitalism. Westport: Prospecta Press.Google Scholar
  39. MOST (2007). National guidelines for medium- and long-term plans for science and technology development (2006–2020) of China. Beijing, China: Ministry of Science and Technology Publications. Retrieved June 15, 2013, from
  40. Nee, V. (1992). Organizational dynamics of market transition: Hybrid forms property rights, and mixed economy in China. Administrative Science Quarterly, 37, 1–27.CrossRefGoogle Scholar
  41. Nolan, P. (2001). China and the global economy: national champions, industrial policy and the big business revolution. Houndsmill: Palgrave.Google Scholar
  42. Olsen, P-I. (2011). Knowledge, Transparency and Power in Business Networks, IMP Journal, 5, 94–106.Google Scholar
  43. Rampersad, G., Quester, P., & Troshani, I. (2010). Managing innovation networks: Exploratory evidence from ICT, biotechnology and nanotechnology networks. Industrial Marketing Management, 39, 793–805.CrossRefGoogle Scholar
  44. Ritter, T., Wilkinson, I., & Johnston, W. (2004). Managing in complex business networks. Industrial Marketing Management, 33, 175–183.CrossRefGoogle Scholar
  45. Rooker, T. (2015). Corporate governance or governance by corporates? Testing governmentality in the context of China’s national oil and petrochemical business groups. Asia Pacific Business Review, 21, 60–76.Google Scholar
  46. Sheng, S., Zhou, KZ., & Li, JJ. (2011) The effects of business and political ties on Firm Performance: Evidence from China, Journal of Marketing, 75, 1–15.Google Scholar
  47. Su, Y. S., & Hung, L. C. (2009). Spontaneous vs. policy-driven: The origin and evolution of the biotechnology cluster. Technological Forecasting and Social Change, 75, 608–619.Google Scholar
  48. Suderland, D. (2005). China’s science parks: Production bases or a tool for institutional reform? Asia Pacific Business Review, 11, 83–104.CrossRefGoogle Scholar
  49. Sun, Y. (2004). Corruption and market in contemporary China. Ithaca: Cornell University Press.Google Scholar
  50. Tan, Y. L. (2011). Chinnovation: How Chinese innovators are changing the world. Singapore: Wiley.Google Scholar
  51. Wade, R. (1990). Governing the market: Economic theory and the role of government in East Asian industrialization. Princeton and Oxford: Princeton university press.Google Scholar
  52. Weiss, L. (1995). Governed interdependence: Rethinking the government-business relationship in East Asia. The Pacific Review, 8, 589–616.CrossRefGoogle Scholar
  53. Welch, C., & Wilkinson, I. (2004). The political embeddedness of international business networks. International Marketing Review, 21, 216–231.Google Scholar
  54. Wu, W. (2007). Cultivating research universities and industrial linkages in China: The case of Shanghai. World Development, 35, 1075–1093.CrossRefGoogle Scholar
  55. Xie, W., & White, S. (2004). Sequential learning in a Chinese spin-off: The case of Lenovo Group Limited. R&D Management, 34, 407–422.CrossRefGoogle Scholar
  56. Zhao, L., & Aram, J. D. (1995). Networking and growth of young technology-intensive ventures in China. Journal of Business Venturing, 10, 349–370.CrossRefGoogle Scholar
  57. Zhang, F., Cooke, P., & Wu, F. (2011). State-sponsored R&D: a case study of China’s biotechnology. Regional Studies, 45, 575–595.Google Scholar
  58. Zimmerman, M., & Zeitz, G. J. (2002). Beyond survival: Achieving new venture growth by building legitimacy. Academy of Management Journal, 27, 414–431.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Åse Linné
    • 1
  • Tommy Shih
    • 2
  1. 1.Department of Engineering SciencesUppsala UniversityUppsalaSweden
  2. 2.Department of Business AdministrationLund UniversityLundSweden

Personalised recommendations