Managing the interface between public sector applied research and technological development in the Chinese enterprise sector

China's technological capabilities are emerging rapidly and the country will become a major challenger to established nations in terms of R&D and innovation in the near future. For the moment, however, contradictory signals emerge from the Chinese economy leaving experts pondering about the country's true potential for technological upgrading on a broad scale. The integration of the domestic research system, international technology transfer, and technological development remains limited to a few high-tech companies, while large segments of the domestic private sector have limited access to knowledge and technologies to upgrade their activities.