Technological Development, Alliance Capitalism and Chinese State Capacity

Abstract

Innovation is a catchword that serves to mould and define the strategic policy objectives of the twenty-first century Chinese state. The central government’s guiding policy documents for the promotion of innovation is the Medium to Long Term Plan (MLP) for the Development of Science and Technology (S&T) which was issued in January 2006 and the 12th Five-Year Plan for 2011–15. These S&T documents articulate the key goals and policy directives that the Chinese developmental state will employ in its attempt to become an “innovation-oriented” society by the year 2020 and a world leader in S&T by 2050 (Bute, 2013). In 2012, the State Council issued another important policy document designed to accelerate the innovation process: “The Development Plan of National Strategic Emerging Industries during the 12th Five-Year-Plan Period (2011–2015)” (Yi, 2012). The goal of this policy document is to specify strategies and plans of nurturing and developing strategic emerging industries during the 12th Five-Year Plan. According to the State Council, strategic emerging industries are defined as sectors that are based on major technological breakthroughs, address major development challenges, have long-term impacts on economic and social development, are knowledge intensive and have growth potential (Yi, 2012). It is a state-led policy approach that establishes a central role for the government in the development and the steering of the innovation process.