Contents

Ⅰ. INTRODUCTION

Ⅱ. CRISES FOR CHANGE

Ⅲ. KNOWLEDGE INITIATIVES AND IMPLEMENTATIONS

 1. CHINA

 2. INDIA

Ⅳ. KEY SUCCESS FACTORS (IN A NUTSHELL)

Ⅴ. FUTURE CHALLENGES

Ⅵ. POLICIES FOR CONTINUED SUCCESS

Abstract

Being the two most populous, and rapidly catching up developing countries, China and India's emergence is briskly the global growth dynamism and economic structure, and has been receiving great global attention all over the world. This paper is intended to examine these two countries' successes from a knowledge and innovation perspective, and to highlight some policy measures for ensuring long-term success. According to the author, the success of these two countries can be mainly attributed to : 1) successful economic reforms backed with clear visions and strategies from the top leadership in the face of crises; 2) tapping into the global knowledge and technologies through FDI foreign direct investment(mainly China) or Diaspora (especially India); 3) the creation of critical mass of innovation and human capital capabilities through a large pool of scientists and engineers and skilled labors; and 4) catching newly emerging knowledge-intensive industries such as information and communications technology(ICTs) and software. To maintain the current dynamisms and ensure continued success, both China and India need to take some effective measures to strengthen their long-term institutional, innovative, and human capacities. These mainly include improving the governance and the overall investment climate; spurring science and technology(S&T) and innovation activities, especially those of the private sector, and strengthening technology diffusion; enhancing R&D efficiency through better linkage with the production sector; further tapping into the global knowledge and technology stock; further leveraging the innovation clusters; improving the quality of education, especially that of the higher education, and establishing a lifelong learning system through a solid accreditation, certification, and qualification system, and extensive use of modern technologies.