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JSTPC
4,2
76
Received 14 January 2013
Revised 26 May 2013
Accepted 30 May 2013

Chinas
transformation
towards
a global green
system of innovation
Dora Marinova and Xiumei Guo

Curtis University Sustainability Policy (CUSP) Institute, Curtin

University,
Fremantle, Australia, and

Abstract
Purpose This paper aims to examine recent trends and Chinas role in the emerging global green
system of innovation (GGSI) and present the major achievement in Chinas R&D sectors and major
challenges faced by the country. The authors use Chinas role in the clean development mechanism
(CDM) as a case to demonstrate the countrys willingness to adopt new technology and green
innovation.
Design/methodologyfapproach In order to understand Chinas transformation towards the
GGSI, the approach used in this study is a review of innovation systems literature combined with
analysis of statistical data from various sources. The authors also build an innovation model for the

emerging global green system of innovation to demonstrate the building blocks which allow for

transformational system failures to be avoided. The clean development mechanism (CDM) is used as a
case example as to how GGSI works.
Findings This paper puts into perspective some recent developments in innovation and argues
that there is enough evidence to claim that the world is re-orienting towards a global green system of
innovation in which China is already one of the most significant players.
Originality/value Through building a new innovation model, this study demonstrates the
complexity and the development of innovation in the context of Chinas transformation towards

the GGSI.

Keywords Global green system of innovation (GGSI), R&D, Sustainability, Model, CDM,
Policy, Innovation, Research and development, China
Paper type Research paper

Journal ct Science and

Technology Policy in China
Vol. 4 No. 2, 2013
pp. 76-98
O Emerald Group Publishing Limited
1758-552X
DOI 10.1108/JSTPC-01-2013-0002

Introduction
Chinas economic strategy has been successful in maintaining high economic growth
for over three decades and the country has become the worlds second largest
economy. However, China has now also become the global top energy consumer
and greenhouse gas (GHG) emitter. In early 2010 the Chinese Government joined
the non-legally binding Copenhagen Accord demonstrating strong political will to
be part of combatting climate change and the global efforts to prevent further
anthropogenic ecological deterioration. China announced to the international
community its intentions to voluntary reduce its emissions o1carbon dioxide per
unit of GDP (namely, its carbon intensity) by 40-45 percent by 2020 compared with
2005 levels. The countrys national policies shifted from resource- and energyintensive economic development models towards creating an energy efficient
and environmentally friendly society.
The authors acknowledge the financial support of the Australian Research Council. They are
also thankful to the journal's Editors and reviewers for helpful comments.

Chinas innovation policies and overall innovation capacity have positioned the
country well to achieve such an ambitious move. Its investment in research and
development (R&D) has steadily been increasing for decades and at 18 percent per
annum, R&D growth has almost doubled the countrys GPD growth rate in the last
ten years (Wu, 2012).
Chinas substantial economic progress was accompanied by dynamic
developments in the area o1science and technology. The countrys R&D intensity
(the ratio o1R&D expenditure over GDP) rose from 0.9 percent in 2000 to 1.8
percent in 2011 (Table I). Although this is still lower than in the USA (2.8 percent)
and Japan (3.4 percent), it is higher than in other fast developing economies, such
as India (0.8 percent) and Brazil (1.1 percent) (National Statistical Bureau and
Ministry of Science and Technology, 2011). Chinas 12th Five Year Plan and
medium- to long-term development strategy propose a further increase in Chinas
R&D intensity to 2.5 percent by 2020.
The sheer volume o1 R&D investment at present, estimated at US$198.9 billion
(8atelle, 2012)[1], is second only to the USA with China recently overtaking Japan.
The result o1 the expansion in R&D spending is rapid technological progress which
is taking place in the country. In 2004 China became the worlds leading exporter
o1 ICT, including mobile phones, digital cameras and laptops (OECD, 2005). Other
examples include the development of bullet (high-speed) trains and advancement in
clean energy technologies. China has also significantly increased its innovation
capacity by a steady performance in commercialising R&D and developing
technological markets. The number of domestic patents granted doubled between
2006 and 2010 followed by a further sharp increase in 2011 (Table II). The value
o1the domestic technology market transactions, including commercial transfers,
development, consultations and services associated with technology, also
manifested a similar high growth (Table II). The fast economic development o1 the
country however has produced significant environmental deterioration and the
current environmental performance index by

Global green

system of
innovation

77

2000 2001 2002 2003 2004 2005 2006 2007

R&D (% GDP) 0.90 0.95
Source: NBSC (20002012, 2013)

Year

2008 2009
2011
Table
2010
2012
I. R&D intensity (R&D
1.07 1.13 1.42 1.44 1.52 1.70 1.76 1.83 1.97
expenditure as percent
of GPP) in China, 2000
1.23 1.34
2012

Yalue of technology market

transactions tUS$ billion)

Granted invention patents

(000)

22.8
29.3
38.4
44.5
57.7
73.8

57.8
67.9
93.7
128.5
135.1
172.1

2006
2007
2008
2009
2010
2011

Source: NBSC (2011), China Statistical Yearbook 2011 and National Bureau of Statistics and
Ministry
o1 Science and Technology (2011)

Table
0. Invention
patents and
technology markets

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