More than just a slogan about the country’s innovation system

**Abstract** Innovation is the cornerstone of economic growth and a key driver for national development. In July 2012, the National Science and Technology Innovation Conference, organized by the Party Central Committee and the State Council, introduced an innovation-driven development strategy. The report from the 18th National Congress of the Communist Party of China emphasized the importance of implementing an innovation-driven approach to enhance social productivity and overall national strength. The Chinese nation has always shown a strong spirit of innovation. However, despite this, China did not experience an industrial revolution or modern capitalism, nor did it develop a robust scientific and technological engine. This raises questions about why China's innovative capacity remains limited. Scholars such as Marx, Joseph Needham, Max Weber, and Baumol have all explored these issues. Marx proposed the idea that Eastern societies tend toward stagnation, while Joseph Needham questioned why ancient Chinese technology was advanced but did not lead to a scientific revolution like that in the West. Max Weber asked why the Industrial Revolution did not occur in China, which had early signs of capitalism. Similarly, Baumol questioned why there were so many technological innovations in ancient China without widespread commercial application. Even Qian Xuesen raised concerns about the lack of outstanding talent in Chinese education. To address these issues, the author argues that China has not established a self-organized innovation system from the beginning. There are two main types of innovation systems: self-organizing and externally organized. A self-organizing system operates based on internal logic and mutual understanding, producing original results without external direction. Examples include Newton’s laws, Einstein’s relativity, Edison’s inventions, and companies like Microsoft and Apple. In contrast, an externally organized system relies on external instructions and imitation, often lacking internal coherence. Historically, China’s innovation system was shaped by monarchical control, with innovation driven by external commands rather than internal motivation. Innovations such as papermaking, the compass, gunpowder, and movable type printing were primarily aimed at reinforcing imperial power rather than advancing society. The innovators were often artisans or court officials, not professionals with deep knowledge, and their work was driven by orders rather than curiosity or market demand. The outcomes were mostly used for royal consumption rather than broader societal benefit. This externally organized system, supported by strong state authority, allowed China to achieve significant milestones, such as the Four Great Inventions and advancements in porcelain and silk. However, after the Opium War, foreign invasions weakened China’s central authority, disrupting this system. Without a self-organized alternative, China struggled to produce meaningful innovations. It wasn’t until the mid-20th century, with the establishment of a centralized government, that China regained the ability to achieve breakthroughs like the atomic bomb and space satellites. Despite economic reforms and increased investment in science and technology, the externally organized system has remained dominant. While China now leads in patent applications and scientific publications, much of this success comes from external pressures and state-driven efforts. The self-organized innovation system remains underdeveloped, leading to a surge in low-quality patents and papers. If China continues to rely on top-down “embedding” and fails to nurture a self-organized innovation model, true independent innovation and the development of an innovative nation will remain out of reach.

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