The role of incubators in the technology innovation strategies of the U.S., Taiwan and China

By Marting Grossman.
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This paper provides a comparison of the high-tech incubation systems in the United States, Taiwan and China, highlighting the unique characteristics of each country’s approach to innovation. The interrelationships between industry, government and academia are contrasted in each of these environments, and the implications for policy decision-making discussed. (Martin Grossman)
I am interested in the discussion of China's incubation system. This paper concludes that even though China is making significant progress in high tech industry, but a lack of managerial talent, insufficient venture capital, a risk-averse mindset, and preference for guanxi versus normal market channels and weak intellectual property rights pose some difficult challenges as China moves towards a knowledge-based economy.
I think China have to do more to fulfill its "catch up" goal.
1, heavily invest in education. This is a vital step to a country's sustainable development. Japan's raise in 19th century and rapid development after WW II mainly due to its heavily invest in education.
2, separation of the executive, legislative and judicial powers. Chinese government is doing all these jobs. A good judicial system relies on separation of powers.
3, political reform. Democracy and market economy are the twin brothers for the development of economy. China solely adopts market economy but rejects democracy.