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There is concern in China that the strategy which has delivered massive economic growth is unsustainable in the long run, that China's economy is too dependent on low value added manufacturing and not enough based on high value technological innovation. This book assesses the policies implemented in recent years to address this, policies which include increasing the pool of human capital, especially by training very large numbers of graduate engineers, investing massively in improved infrastructure such as institutions of higher education, telecommunications and transport, and providing financial incentives ' both direct government funding for private sector innovation activities and fiscal incentives which encourage innovation by reducing the tax burden on innovators. The book examines the impact of these policies, providing detailed studies of firms' innovation activities both in particular sectors and in particular regions. Throughout, the book discusses how effective China's innovation policies are and how innovation in China is likely to develop in future.