Source: Worldbank
China has the world’s largest higher education sector and has made impressive gains in making sure that such education is widely accessible. Government investment in the sector has been high, with total expenditures on higher education increasing six-fold from 1997-2005. Nonetheless, notes this study, universities in China have yet to become key drivers of innovation. China has also seen solid growth in R&D spending, but the bulk of this spending (70%) goes to industry, with universities performing less than 10% of R&D. Still, universities in China find themselves having to operate in an increasingly market-oriented environment and a handful of elite universities are creating university enterprises, or entering into technology transfer contracts with firms. The author evaluates the basic characteristics, scale and performance of Chinese universities, while outlining their interaction with the other elements of the innovation system and assessing their ability to contribute effectively to the creation, adaptation and diffusion of technology and knowledge. The paper concludes with policy suggestions on how the contribution of higher education to the national innovation system could be enhanced both in China and possibly in other developing countries.
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