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This thesis examines the effectiveness of Indigenous Innovation since its launch in 2006, and is structured in the following manner. Chapter One seeks to determine whether or not the campaign has been successful in delivering intended results regarding its goals for creating an industrial system that breeds indigenous innovation, supports further economic development in China, and makes Chinese firms internationally competitive. Ultimately, we come to the conclusion that Indigenous Innovation may have been able to increase overall gross expenditure on R&D, as well as put China at the top of the list of international patent filings and academic paper citations, though quantity plays a much larger role than quality. However, it has not turned China into a technological powerhouse, nor reduced its reliance upon foreign technology to the degree that the Indigenous Innovation campaign aims to achieve. Chapter Two probes some of the links between the relevant economic literature on endogenous economic growth and the blueprint document of Indigenous Innovation. It does this through analyzing the role of the importation of foreign technology in the economic success of a country, and the role of the state in incentivizing technological progress (more commonly referred to as industrial policy). Chapter Three in turn answers a follow-up question to Chapter One: why has Indigenous Innovation essentially failed in turning China into a technological powerhouse, as well as reducing its reliance upon foreign technology to the degree originally intended?




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