Innovation in China – some evidence from foreign R&D centres in Shanghai

Professor Seamus Grimes (CISC and Geography, NUI Galway)

While there is a general view in the literature that despite China’s very significant pace of economic growth in GDP terms since adopting an ‘open door’ policy in 1978, the level of innovation is till rather low. Despite this general view, there is little doubt that China has been making very significant strides in the general area of science and technology, and particularly in terms of growth in R&D investment. In terms of total R&D investment, China is now in third place after the US and Japan. While almost 80% of this investment comes from within China and particularly its enterprise sector, the role of foreign investment, which has played a very significant role in China’s increasing integration into the global economy, also plays a very significant role. This paper will focus on that role, particularly in relation to R&D FDI in Shanghai.

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