Open innovation in China: policies and practices

The purpose of this paper is to review the evolution of policies and practices of open innovation (OI) in China under globalization.

This is a review paper. It combines historical archives and case study approaches, covering policies and practices at both the macro‐ and micro‐levels.

It is found that Chinese firms have in practice employed a variety of OI models since the reforms of science and technology systems in the mid‐1980s. Policies introduced by the Chinese Government with respect to inbound and outbound OI, as well as policies encouraging OI networks, have encouraged Chinese firms to adopt various OI modes and practices. Some critical institutional challenges still need urgent attention and effective efforts to reinforce them.

This paper aims to fill the gap in the literature by providing the first systematic review of the evolution of the policies and practices of OI in China, and exploring the implications for latecomer firms in building indigenous innovation capability. As far as the authors are aware, this is one of the first systematic review studies on OI policies and practices with a focus on emerging economies.