Regarding innovation as an effective engine for sustainable growth model, Chinese government has launched a series of policies and regulations with the aim of becoming world-leader in innovation by 2050. The Chinese enterprises as potential main innovators are also undergoing a rapid transformation in the process of evolving from backroom producers to the world’s leading force of innovation. However, the unique political and cultural circumstances of China as emerging economy means that the innovation process in China looks very differently than it does in the rest of the world.
What will China need in terms of institutional changes? Does geographical location advocated in the field of economic geography really work in China? Are there any other factors besides firm- and region-level ones determining the innovative performance of Chinese enterprises? This thesis consisting of three chapters sheds light on issues relating to innovation and tries to answer questions like these.
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