International technology transfer to China: The case of biotechnology

Since the early 1980s, the Chinese government has been driving the evolutio n of an endogenous innovation system. Various policies were adopted to fost er the improvement of technological capabilities in the past two decades. T he characteristics of the Chinese innovation system have been gradually res haped. Such structural evolution affects the development of the Chinese bio technology industry as well. The purpose of this study is to investigate th e significance of the changes in the Chinese innovation system for biotechn ology transfer Three major trends have been discerned. First, the enhancement of a patent system has provided a vehicle for innova tors lo convert knowledge into marketable formats. Filing for patent protec tion is becoming an ordinary practice across industries. Second, the formal ization of the business contract system has demonstrated great effect on th e user-producer interactions between international biotechnology firms and their Chinese counterparts. Third, biotechnology research has become one of the most popular industries in China. Due to the increasing mobility of th e research and development (R&D) workforce and the restructuring of the R&D financing scheme, Scientists and engineers are able to work where their kn owledge is valued and needed most. Also, the concentration of research manp ower and funds may encourage the positive feedback of China's biotechnology innovation system. International technology transfer can be an effective s trategy to engage this positive cycle.