Abstract

China is at the critical cross road of transforming its development model from a resource and low-tech based one towards a more knowledge and technology intensive one. Evidence shows that Chinese enterprises, especially SMEs, are facing serious constraints in terms of human resources, technology acquisition and absorption, and access to finance and various innovation services. How to overcome these constraints is the key focus of an effective innovation strategy. This paper is intended to examine these key constraints through a diagnostic analysis, and to provide relevant policy suggestions and good international or domestic examples in various areas.