New Climate of Innovation System in China - From the Perspective of Regional Transition

China has been one of the most favorite markets in the world for the last decade. With the economic liberalization reforms starting in 1978, China¡¦s government provided for Special Economic Zones (SEZs) in a few of provinces on the coastal area (Yao et al, 1998). SEZs in China have been established and aiming to attract direct foreign investment (FDI) to encourage technology transfer and boost exports and employment. However, since the changes of policies, regional characteristics of manpower, and fruitful university spin-offs, the business opportunities in China are inclined to transit from the south to north and obviously result in a new climate of innovated competitiveness and regional cooperation in China. This study investigates the innovation tendency of regional transition from the south to north in China by examining the regional characteristics of manpower, revenue of university spin-offs, provincial R&D expenditures and FDI, and regional government policies in China.