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“China phenomena” is changing the knowledge balance of the world. Many countries, in particular, Western countries, are carefully following the development and change of China's technology system and innovation policy. After turning itself into the world's manufacturing powerhouse, China aims to be an innovation‐oriented country. The purpose of this paper is to list some of the key factors which favor or hinder China's efforts to build an innovative economy.

The paper lists some of the key factors, which favor or hinder China's efforts to build an innovation‐oriented country. The factors identified are summarized from a literature review on studies about China's efforts to build innovation capabilities.

The paper finds that three key factors favor China's efforts to build an innovation‐oriented country, including escalating R&D spending, the upgrading of technological capabilities and global linkages. Four central challenges are facing China, such as how to build human resources, innovative cultures and incentive systems appropriate for innovation and how to strength intellectual property rights protection.

Today, China is, by and large, a follower rather than an innovator in technology. The question whether China will become a real innovative economy in the next 13 years is hard to answer. This paper lists some of the key factors which favor or hinder China's effort to build an innovation‐oriented economy, all of which should be of interest to China's scholars, government officials and practicing managers.

The purpose of this paper is to verify the offered hypothesis and to determine high-priority directions of modernization of university education in an innovational society by the example of modern Russia.

During the empirical study of connection between university education and innovational development of economy, the author uses the method of correlation and factor analysis.

As a result of the research, the author has come to the conclusion that under conditions of transition to innovational society, there is transformation of the role of university education from the means of transition of knowledge and skills, necessary for practical activities, to a platform for the creation of innovations. The author analyzed the peculiarities of innovational society and found out that innovations that are the key driver of its development are provided by the system of university education.

Practical value of the work consists in a possibility for use of the developed recommendations for modernization of university education in the innovational society in modern Russia and other countries with similar problems.

Theoretical importance and scientific value of the performed research consists in the development of innovational society and innovations-oriented economy, as well as the concept of university education.

The purpose of this paper is to examine the transfer of Shenzhen's hi‐tech industries, with particular emphasis on its motives, characteristics and influence on Shenzhen's economy and industrial upgrading.

The paper uses an empirical approach and case study methodology mainly based on a survey of 1,573 hi‐tech companies in Shenzhen, in the form of questionnaires and interview.

Hi‐tech companies moved out to other cities on a small scale, revealing an accelerating trend. Most companies moved out (or plan to move out) with the purpose of seeking low production costs or meeting the needs of resources for development. Moreover, companies with different types of ownership transfer at different levels. In general, reasonable transfer of hi‐tech industries facilitates Shenzhen's industrial upgrading; however, the government should at the same time take precautions against industry transfer on a large‐scale.

Upgrading of Shenzhen's hi‐tech industry is imperative. To meet this end, policy makers should draw up appropriate guidelines on the transfer of backward hi‐tech industries and at the same time build sound supporting environment to attract and retain advanced hi‐tech companies.

Few empirical studies have been conducted to explore industry transfer within China. By examining the motive and characteristics of transfer of hi‐tech industries in Shenzhen, a pioneering city in China, this paper contributes to our understanding of the ongoing industrial restructuring in China.

With the increase of state capital, corporate total factor productivity (TFP) has a tendency to jump up at first and then slowly decrease. Generally, no significant “productivity paradox” can be observed in China’s manufacturing industry. With the increase of export density, corporate TFP also shows a trend of initial jump growth and subsequent slow decline. This paper aims to discuss these issues.

Using the 1996–2013 China Industrial Enterprise Database, this paper studies the monopolistic behavior of Chinese manufacturing enterprises through the measurement of TFP and corporate monopoly power.

Results show that China’s manufacturing monopoly enterprises are generally innovation-oriented rather than rent-seeking. However, there are certain differences between diversified types of monopoly enterprises: the ones with state capital are more inclined to innovate than those without, whereas the ones with export delivery value are more inclined to seek rent than those without.

Therefore, the government should implement differentiated policies for diversified types of monopoly enterprises, and do so in a targeted manner fully reflecting the containment of rent-seeking and the encouragement of innovation.

The purpose of this paper is to analyze how internal-driven management innovation (IDMI) takes shape, which highlights the objective-oriented and problem-oriented property of the innovation.

Based on a case study of a new practice called 11X integration strategy in Guangzhou Pharmaceutical Holdings Limited, a Chinese pharmaceutical group in Guangdong province, through applying Grounded Theory the authors get a concise systematic framework of generation process that is more practical and more understandable than the counterparts in current literature.

First, this paper uncovers five stages and two parallel sub processes in the generation process of IDMI. The sub processes involves practical exploration process (i.e. primary activities) carried out by the internal change agents and theoretical support process (i.e. support activities) carried out by the external change agents. Second, by adopting a process perspective the authors are able to demonstrate how the different activities in both types of processes are combined over time in an intertwined way.

First, the case the authors studied is embedded in the context of China’s transitional economy, and the single case study limits us to make comparisons of the generation process of management innovation between different market economies. Second, the external-driven management innovation is still a field untouched. Third, in the research the authors explore the issues of how new management innovation is generated and implemented, but the authors do not systematically research on why different companies exhibit different levels of management innovativeness.

First, the findings suggest that firms should consciously and systematically invest in IDMI to create sustainable competitive advantage. Second, the process framework provides a clear guidance to the managers in Chinese state-owned enterprises who are engaged in developing or adopting management innovation. Third, the study indicates the managers in Chinese company should be aware of the importance of external change agents to IDMI. Fourth, this study could facilitate the enterprises to develop or adopt management innovation based on their real needs rather than just “jumping on the bandwagon” when adopting certain new management skills.

This study offers a new generation framework by identifying possible facilitators of IDMI that does not yet exist in extant literatures, and the two sub processes – the practical exploration process and the theoretical support process – deepen the understanding of the generation mechanisms of IDMI. Furthermore, the study contributes to reaching a better understanding of management innovation in the context of transitional economy such as China.

Ethical leadership is at the forefront of what matters in today’s business life and current issues, with a view to making strong moral decisions through bilateral communication. Service innovation behavior is important in terms of individual and institutional actions in the process of producing and implementing new ideas. Investigating the mediating role of psychological capital which consists of self-efficacy, optimism, hope and psychological endurance dimensions, between ethical leadership and service innovation behavior, is a matter to be investigated. This study aims to assess the impact of ethical leadership on service innovation behavior by means of a comprehensive literature review. In this framework, psychological capital forms the scope of researching the mediating role.

This study was conducted with 376 blue-collar workers randomly selected from 140 company which were selected from 1,294 joint stock companies among 76,882 companies operating in the province of Adana in Turkey and registered in the Adana Chamber of Commerce, by applying a questionnaire of 40 items.

As a result of the factor analysis, 6 items which could not provide reliability were extracted from the scale and the remaining 34 items were distributed in three factors and the validity of the construct validity was measured by the convergence and divergence methods. Construct reliability (CR) values were found to be statistically significant (SRMR: 0.50, RMSEA = 0.058, IFI: 0.955, CFI = 0.97, GFI = 0.96, AGFI = 0.86, TLI = 0.97, χ²/s.d. = 2.264) when it was above 0.7, and the structural equation model determined that the research data and the initially determined model are compatible. Ethical leadership has a significant effect on psychological capital (ß = 0.224, p < 0.001), ethical leadership has a significant effect on innovation (ß = 0.113, p < 0.001), psychological capital was found to have a significant influence on service innovation (ß = 0.965, p < 0.001), and ethical leadership was mediated by psychological capital on service innovation behavior (SIE = 0.235).

Further research is needed to assess conducting research in enterprises with different cultural characteristics. This paper provides the effectiveness of ethical leadership and psychological capital factors, which are effective in improving employee service innovation behavior and enabling managers to develop human resources strategies in this respect.

The results provide the impact of ethical leadership on the productivity of employees in the workplace and provide practical benefits in terms of developing innovation-oriented service development behaviors.

The innovative behaviors of the employees enable the development of innovative ideas in social life by contributing to consumer satisfaction and economy. Ethical leadership ensures positive behaviors in the society by ensuring that employees in the workplace develop justice sentiments.

The mediating role of psychological capital between ethical leadership and service innovation behavior has not been investigated before. In this study, the effects of self-efficacy, optimism, hope and resilience factors were investigated in providing ethical leaders and employees, creating value in the enterprise, and in providing innovation-focused services for employees.

The purpose of this paper is to review the evolution of policies and practices of innovation in China for the past 40 years.

This is a review paper. It adopts a different multi-dimensional, qualitative methodology to examine China’s trajectory of innovation from the economic reform since 1978, highlighting “China” experiences in the developing innovation-driven economy, also pointing the challenges that China faces in this transition process and future prospects. The analysis of China’s innovation performance was based mostly on secondary data from sources and institutions that use statistical data to build country rankings, such as the global innovation index and global competitiveness index.

It is found that the institutional foundations of the national innovation system in China are already being laid, and so far, China has made extraordinary progress regarding innovation performance from country to region and from business to individual. However, some critical challenges in its innovation-driven development still need urgent attention and effective efforts to reinforce them.

This paper aims to fill the gap in the literature by providing an overview of the evolution of the policies and practices of innovation development in China since the 1978 economic reforms and explores the Chinese experiences in transforming into an innovation-driven economy.

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.

China has been the most important economic partner to Korea since the resurrection of their diplomatic relationship and economic interaction. It has been suggested that China simultaneously presents challenges and opportunities to the Korean economy. This paper investigates changes in trade specialization patterns and comparative advantage of Korea and China, and analyzes the effect of market expansion of Chinese industries on market shares of Korean industries. It is found that since the early 1990s, the industries that lost market share as China’s share increased include those in which Korea has maintained a comparative advantage or improved the level of disadvantage, such as IT equipment and other transport equipments. Considering growth of trade flows and emergence of China, it is critical for Korea to actively participate in international production chains, create competitive edges and extend complementary relationship with trading partners.

Much of the scholarly works on open innovation have significantly highlighted the application of the model in high-tech industries in the developed world. However, how the phenomenon applies in low-tech small and medium-sized enterprises (SMEs) in developing countries is still marginal and lacks substantive research. This study aims to draw on the network theory of innovation to examine the open innovation orientations of low-tech SMEs in an emerging market context, particularly Ghana.

The research design used was a qualitative–quantitative approach: the qualitative phase of the study, involving 31 low-tech SMEs, used a multiple case approach through semi-structured interviews and analyzed the interview responses using NVivo statistical tool; the quantitative phase, including 706 low-tech SMEs, also used a survey questionnaire approach and descriptively analyzed data collected using SPSS statistical tool.

Results disclose that the low-tech SMEs’ employment of the open innovation model are preponderantly driven by commercialization purposes, knowledge acquisition motives, financial motives and strategic motives, whereas their open innovation approaches include inbound strategies (collaboration with suppliers, co-creation/customer immersion), outbound strategies (IP licensing out) and coupled strategies (strategic alliances, contract manufacturing, and joint ventures). Moreover, the findings show that the SMEs’ preferred open innovation partners include suppliers, customers, private universities and non-industry, in that order. Finally, results show that the low-tech SMEs’ open innovation advantages include market gains, strategic gains, knowledge gains, operational gains, financial gains and network gains, whereas their open innovation challenges colossally were collaboration barriers and organizational barriers.

These findings purvey valuable perceptiveness for managers, academicians and policymakers alike; they highlight the importance of open innovation to low-tech SMEs, proven strategies, challenges involved and the mechanisms for effective and efficient adoption of the open innovation model.

The value of this study reclines in the extension of open innovation research from high-tech industries in the advanced world to low-tech SMEs in emerging economies. Results of the study enrich the knowledge and understanding of how the theoretical model of open innovation is adopted and implemented by the low-tech SME sector in emerging economies.