State-led Technological Development: A Case of China’s Nanotechnology Development

We analyze nanotechnology patent applications filed in China from 1998 to 2008 and find that the extraordinary pace of nanotechnology development achieved over that period has been promoted primarily by the public sector rather than being driven by industry and market forces. This finding implies that developing countries such as China with public research capacity and commitment to technological development can make rapid progress in basic research in emerging technologies, but it remains uncertain whether and when local industry can benefit from public R&D investment enough to enable active development of indigenous innovation.