This book argues that China must become an innovation-based economy to avoid the middle-income traps, and examines both the opportunities and challenges in meeting this goal.

1. China's innovation challenge: an introduction Arie Y. Lewin, Martin Kenney and Johann Peter Murmann; 2. New structural economies: the future of the Chinese economy Justin Yifu Lin; 3. Impact of China's invisible societal forces on its intended evolution Gordon Redding; 4. The road ahead for China: implications from South Korea's experience Michael A. Witt; 5. Innovation and technological specialization of Chinese industry Keun Lee; 6. China's political economy: prospects for technological innovation-based growth Douglas Fuller; 7. Transforming China's IP system to stimulate innovation Menita Liu Cheng and Can Huang; 8. Building the innovation capacity of SMEs in China John Child; 9. Who benefits when MNEs partner with local enterprises in China? Simon Collinson; 10. Advantages and challenges of Chinese MNEs in global competition Yves Doz and Keeley Wilson; 11. Emerging trends in global sourcing of innovation Silvia Massini, Keren Crispin-Wagner and Eliza Chilimoniuk-Przezdziecka; 12. Why is China failing to leapfrog India's IT outsourcing industry? Weidong Xia, Mary Ann Von Glinow and Yingxia Lia; 13. Barriers to organizational creativity in Chinese firms Zhi-Xue Zhang and Weiguo Zhong; 14. Institutional and cultural contexts of creativity and innovation in China Chi-Yue Chiu, Shyhnan Liou and Letty Y-Y. Kwan; 15. Reframing basis for cross-cultural management Rosalie L. Tung; 16. China's innovation challenge: concluding reflections Arie Y. Lewin, Martin Kenney and Johann Peter Murmann.