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Panel II: Competition and Cooperation in a Global Economy
Pages 68-78

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From page 68...
... This situation was rapidly changing, she said, as India, and especially China, have emerged as serious global competitors for customers as well as for natural resources. But many people feel that this emergence was propelled by a free-rider mentality, lax intellectual property rules, favorable exchange rates, and trade barriers.
From page 69...
... Africa is also growing relatively fast, he said, primarily because of an interdependent relationship with China, to which it exports commodities. As the largest of the emerging economies, China and India are becoming more important not only in terms of trade, but also in activities related to tertiary education, science and engineering, journal articles, patenting, inward and outward foreign investment, and geopolitical policies, many of which place increasing pressures on the global economy and the environment.
From page 70...
... and continue its own climb at a slightly slower rate than China. These changes would occur slightly more slowly if calculated in nominal exchange rates or adjusted for overvalued currencies, but the trends would be consistent.
From page 71...
... "They are making a very big effort," he said, "going from a focus on imitation, which they have done well, to tapping global knowledge, to beginning to invest on their own account. They still have a long way to go in terms of quality, but in many areas they're moving to be leaders in scientific and technical publications." China is having big impact, because of its larger size, faster growth, greater integration to the international system, and more strategic government, he said.
From page 72...
... They demand a great deal of technology sharing, such as source code, from foreign partners in joint ventures; they restrict access to their markets; and they impose government procurement rules and standards, all of which create frictions. IPR piracy continues to drain profits from companies.
From page 73...
... Taiwan assembled its own version, the Industrial Technology Research Institute (ITRI) , in 1973, followed by Hsinchu Science Park in 1980 and Southern Taiwan Science Park in the 1990s.
From page 74...
... Having become largest notebook producer in the world, ITRI went on to pull together 47 of its companies as a Notebook Computer Alliance in 1990 to promote production cooperation. This helped to transform Taiwan into the world's fourth-largest producer of IT hardware.
From page 75...
... "Achieving indigenous innovation" has become a slogan, and current goals include intensive investments in crucial high-technology products, and the use of policy tools to promote indigenous innovative technologies, increase R&D spending to 2.5 percent of GDP by 2010, and support state projects to generate important strategic products.
From page 76...
... Mr. Wolff summarized by reviewing the universe of government strategies used to promote innovation, which ranged from "sort of a Washington consensus of a market orientation" to the Beijing strategy of "technonationalism." The Chinese strategy, he said, faced the challenge of achieving indigenous innovation while closing its markets to competitors.
From page 77...
... Engelbert Beyer, Head of the Directorate for Innovation Strategies, Federal Ministry of Education and Research (BMBF) , asked about the U.S.Chinese bilateral innovation platform, and the content of some general government consultations that had taken place two weeks earlier.
From page 78...
... Also, he said, the Chinese, who are heavily dependent on coal, are now building "the best coal plants in the world" and "moving rapidly to prove that sequestration of CO2 can work." Ambassador Wolff noted that "China is run by engineers who have a clear conception of problems they face." As coal represents an increasing proportion of their energy use, they realize its costs in terms of pollution. At the same time, China has the largest wind energy installation to date, and is pressing ahead on its renewable energy infrastructure.


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