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The aim of this paper is to highlight the importance of industrialization and its role in realizing technological innovation leading towards economic development. China has made a 15‐year plan to develop an innovation driven economy, for which it requires a strong and a structured industrial base. An overview of China's industrial strategy has been provided, followed by the challenges and the possible measures needed to be taken in order to achieve its long‐term goals.

Phenomenology, exploratory research and inductive approach for analysing management of technological innovation, industrial clusters and economic development, and, China's innovation plan.

China has emerged as the fastest developing economy and is currently in the transition stage from factor driven to investment driven. In order to stabilize and move towards the investment driven and then to the innovation‐driven stage, China requires a strong industrial base. In order to do so, China needs to cope with the challenges of: a weak system of intellectual property management: lack of skilled and technical labour and adequate financial resources: slow pace in competence and competitiveness upgrading: a weak educational system: industrial pollution; and, lack of basic research.

The paper serves as a guide to students and researchers by presenting a summary of global trends regarding technological innovation, industrial clusters, and China's industrial policies to develop an innovation driven economy.

Employee work engagement has become a major concern for managers as hardly 21% of employees are engaged in their work. Therefore, this study aims to unveil the association between ethical leadership and employee engagement. Specifically, the study explores the mediating role of trust in leader between ethical leadership and employee work engagement and moderating role of harmonious work passion in the association between trust in leader and employee work engagement.

This study collected data from 491 employees and their immediate supervisors working in various organizations (in Pakistan) through “Google Forms”. The data were analyzed through analysis of moment structure (AMOS) and structural equation modeling (SEM) was applied to examine measurement model (for unidimensionality) and structural model (for hypotheses testing).

The study noted that ethical leaders positively influence their subordinates to engage in their work. In addition, employees' trust in leader was noted to mediate the association between ethical leadership and employee work engagement. Finally, employees high in harmonious work passion are more likely to engage in their work when perceived their leaders ethical style.

The study suggests to management that fair dealing and involvement in decision-making (ethical leadership) improve employee work engagement as such practices build employees' level of trust in their leaders. In addition, management is suggested to give freedom to employees while selecting their tasks as it positively contributes to their harmonious work passion which ultimately benefits the organization.

Drawing upon social exchange and self-determination theory, this study is the first of its kind that explored the moderating role of harmonious work passion and mediating role of trust in leader between ethical leadership and employee work engagement.