The evolution of high-technology in China after 1978: Towards technological entrepreneurship

The purpose of this paper is to describe the development of China’s science and technology, their related institutions and use in the business world since the reforms started in 1978. Special attention will be given to the re-integration of high-technology into the private sector and the accompanying new type of organization: the New Technology Enterprises (NTEs) – or technological entrepreneurs – in the Development Zones. In an historical analysis we identify several phases of institutional reforms and international technology transfer. The present state of Science & Technology is analysed in terms of information infrastructure, educational system and innovative capability. The analysis shows the still underdeveloped parts of a science and technology supporting environment. The analysis discusses the basic features of the high-technology industry and identifies the information and communication technology (ICT) sector as the most important sector of the industry. This sector is growing fast none the least due to the attention the reform policy has paid to its development since 1978. Specifically the role of NTEs – who are pre-dominantly ICT oriented – in Development Zones is interesting and important. We argue that the NTEs play a large role in the development of private high-technology. We propose a system for technological entrepreneurship and identify computer hardware and software as key sectors for NTEs and high-technology development.