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Production in the Innovation Economy$
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Richard M. Locke and Rachel L. Wellhausen

Print publication date: 2014

Print ISBN-13: 9780262019927

Published to MIT Press Scholarship Online: May 2014

DOI: 10.7551/mitpress/9780262019927.001.0001

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The Role of Innovative Manufacturing in High-Tech Product Development: Evidence from China’s Renewable Energy Sector

The Role of Innovative Manufacturing in High-Tech Product Development: Evidence from China’s Renewable Energy Sector

Chapter:
(p.139) 6 The Role of Innovative Manufacturing in High-Tech Product Development: Evidence from China’s Renewable Energy Sector
Source:
Production in the Innovation Economy
Author(s):

Jonas Nahm

Edward S. Steinfeld

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262019927.003.0006

This chapter draws on more than one-hundred interviews with renewable energy firms across China to explain China’s centrality in new energy production. The authors argue that this dominance has come about thanks to tight linkages between upstream innovation and downstream manufacturing. However, unlike other chapters in the volume, the authors argue that co-location is not necessary to create mutual gains to the innovator and the producer. Upstream innovation may remain in Western countries, but renewable energy manufacturing takes place in China because those firms excel in innovative manufacturing – in particular, managing the tempo, scale, and cost of production.

Keywords:   China, Renewable energy, Outsourcing, Innovation, Innovative manufacturing

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