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The linkages between the NIS and various
RISs are often omitted or assumed by those
studying regions . The NIS is
important because it sets the basic parameters
for what is possible. For example, in China uni-
versities can own profit-making firms, while in
the United States a university’s direct owner-
ship of a commercial firm would invalidate its
tax-exempt status—a line that private and pub-
lic research universities have been unwilling to
cross. Thus, national laws and decisions pro-
vide the parameters for the actions of organiza-
tions such as universities.
The literature treats URIs as an endow-
ment. Regions have excellent URIs or they
do not. Beijing and Shenzhen are interesting
because Beijing is the Chinese city most en-
dowed with top-quality universities and re-
search institutes (URIs), while Shenzhen only
20 years ago had no URIs, yet it has experi-
enced significant high-technology growth. As
an illustration, after Beijing and Shanghai,
Shenzhen firms are the recipients of the great-
est amount of technology-oriented venture
capital . In contrast, Bei-
jing had little in the way of industry, while
Shenzhen was the earliest growth pole in the
new export-oriented Chinese economy. Given
their different endowments, the development
trajectory of the two regions with respect to
utilizing URIs diverged significantly.
As polar opposites, these two cities can provide in-
sight into the deeply held belief by local
officials throughout China that universities
are the fount of high-technology development
that will lead to prosperity.
When discussing Chinese growth and statis-
tics, it is important to note that governmental
statistics are often deceptive because officials
are under pressure to meet targets and plans,
therefore there is a tendency to minimize the
negative and maximize the positive. The Chi-
nese definition of ‘‘high technology’’ is very
broad and only some of the activities would
conform to the commonly accepted definitions
of high technology in developed countries. In
China, personal computer assembly is consid-
ered ‘‘high technology’’, while few in the Uni-
ted States would define it as such. Because
firms considered to be in high technology re-
ceive tax and the other benefits, there are ulte-
rior motives for declaring oneself to be a high
technology firm. In the case of Chinese tech-
nology parks, Cao in a withering anal-
ysis finds that the government, though
emphasizing innovation, has in practice been
more interested in simple quantitative statistics
such as rates of growth, numbers of firms, and
value of exports. In the case of Chinese patent
statistics, it is generally accepted that many of
them are of dubious merit, and also an
increasing number of them are filed by foreign
firms seeking protection in China, and thus are not Chinese in origin.
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