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Today, we will be examining what distinguishes industrial policies from innovation policies and how China designs tools to steer the country's innovation system. In the first part of class we will jointly discuss theories, types and tools of industrial policies. In so doing, we will ask ourselves what types of instruments are most advantageous for the purpose of stimulating innovation. Then, in the second part of class, you will work together in groups to dissect Chinese innovation policies. The goal will be to identify who the policy is addressed to, what instruments it advocates as well as the role of the market and state in driving innovation.
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