About This Research Report iii

Summary iv

Figures and Tables vii

Chapter 1. Introduction 1

  Types of Technological Diffusion 2

  Approaches for Different Types of Technological Diffusion 3

Chapter 2. Framework for Measuring Diffusion Capacity 5

  A Country-Agnostic Framework for Measuring National Technological Diffusion Capacity 5

  The Framework Tailored for a U.S-China Comparison 9

Chapter 3: Measuring U.S. and Chinese Diffusion Capacity 11

  Metric 1: Research Organizations (Production Diffusion) 18

  Metric 2: Enterprises (Production and Adoption Diffusion) 20

  Metric 3: R-E Linkages (Production Diffusion) 22

  Metric 4: E-E Linkages (Production and Adoption Diffusion) 22

  Metric 5: R-R Linkages (Production Diffusion) 25

  Metric 6: Absorptive Capacity (Production and Adoption Diffusion) 26

  Metric 7: Financial Incentives (Production Diffusion and Adoption Diffusion) 29

  Metric 8: Geography 35

  Metric 9: Intermediary Organizations (Production and Adoption Diffusion) 39

  Metric 10: Legal and Regulatory Systems 41

Chapter 4: U.S. and Chinese Diffusion Capacity Assessment 44

  Where Each Country Leads 44

  Where Each Country Falls Short 45

  A Shared Shortcoming: Small and Medium-Sized Enterprises 45

  China’s Perception of Its Diffusion Deficit 46

  Beijing Addresses Weaknesses with No Sign of a Change in Its Approach 49

Chapter 5. Conclusion 52

  Four Implications for Policymakers, Enterprises, and Researchers 53

Appendix. Components of Diffusion Capacity and Proxies 54

Abbreviations 56

References 57

About the Authors 69