The Chinese Communist Party has made innovation a national priority. Chinese economic growth may persist for the near to medium term even if China does not succeed in generating wholly new technologies, but the character of China as a trading partner or strategic competitor will depend in part on whether China innovates. Barriers to innovation in the civilian sphere should not be mistaken for impediments to military innovation. In addition, comparisons with the Japanese case illuminate the different contributions of culture, factor endowments, and political systems to innovative capacity.

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