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Fostering the development of emerging industry: the role of local government on the development of new energy vehicles in Hangzhou

Kapitel i bok
Författare Jun Jin
Maureen McKelvey
Publicerad i McKelvey, M. and Jin, J. Innovative Capabilities and Globalization of Chinese Firms: Becoming a Leader in Innovation Spaces
Förlag Edward Elgar Publishers
Förlagsort Cheltenham, U.K.
Publiceringsår 2019
Publicerad vid Institutionen för ekonomi och samhälle, Innovation and Entrepreneurship (IIE)
Språk en
Länkar www.e-elgar.co.uk
Ämneskategorier Ekonomi och näringsliv


China aims to become the leader in the new energy vehicles (NEV in short). The innovation in new energy vehicles is one of priority innovation areas in the Chinese 12th 5-year development plan and Chinese S&T plan. For the Chinese government, developing new energy vehicle as a valuable option is very attractive (Midler & Beaume, 2010). There are at least four advantages for China to grow a strong NEV industry: reduce dependence on oil; less emission to have better air quality (Feng & Figliozzi, 2012; Bohnsack et al., 2014) and lower per-mile operating and maintenance costs (Feng & Figliozzi, 2012); to promote transformation and upgrading of the auto industry and to gain promising competitiveness from first-mover advantage of NEV industry development. The new energy vehicle technology is one of emerging technologies, and heavily science-based. It tends to be interdisciplinary and involve a distributed form of knowledge amongst many different actors such as universities, existing large firms, and entrepreneurial firms. Its development requires the support of the regional innovation system. Existing research on new energy vehicles in China focuses on the policies, the research at the institutes, and so on. The research on the NEV commercialization in China is limited, and hence this chapter has an empirical contribution as well as the theoretical contribution. How does the local government in a developing country foster the development of emerging industry in a regional innovation system? This chapter pursues to answer this research question. This chapter addresses emerging industries on-going in China and it does so by focusing upon new energy vehicle industries in Hangzhou, China. Our research reveals that a local government should help the emerging industry to build an innovation system not only in the perspective of technological cooperation but also in the perspective of creating market demand. The research suggests that it is critical to build an eco-system (or an industry network) to enable the companies to easily access the emerging technology, to recruit talents, and to find customers and/or supplies in order to foster the emergence and development of emerging industries.

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