Secretary of State John Kerry and Secretary of Commerce Penny Pritzker met with new Indian Prime Minister Narendra Modi last week to discuss efforts to deepen economic and trade ties between the two nations. However, as Rob Atkinson writes in The Hill, recent actions by the Modi government indicate that India's continued use of innovation mercantilist policies to promote domestic firms at the expense of global trade partners do not bode well for improved relations.
Restoring the Indian Economic Miracle
Writing in the Georgetown Journal of International Affairs, Stephen Ezell argues that if new Indian Prime Minister Narendra Modi is to revitalize India's economy, he needs to adopt a new economic growth strategy consisting of four key elements: embracing across-the-board productivity growth, improving India’s environment for doing business, investing in infrastructure, and seeking to attract—rather than compel—foreign direct investment.
ICT Innovation Policy in China: A Review
China is not only a producer of manufactured goods, but it is increasingly a nexus for technological innovation as a growing share of home grown, high-tech companies compete in the global marketplace. The Chinese government sees information and communications technology (ICT) both as a key catalyst for China’s transition from a manufacturing to a knowledge-based economy and as a positive influence in boosting across the board productivity and overall quality of life in China. That is why a decade ago China designated “informatization,” the adoption and enhancement of ICT in every aspect of the economy and society, as a central facet of the nation’s economic modernization strategy.
This report reviews the long-term, mid-term and industry-specific ICT policies China is utilizing to implement informatization and improve its overall international economic competitiveness. This includes the frameworks to enhance innovation and development in the “Internet of Things,” cloud computing and data innovation.
The report concludes by noting that while Chinese policy is moving in the right direction, the nation still has a long way to go to match the ICT policy framework of the United States or Europe. This would include creating policies to attract, rather than compel, ICT foreign direct investment, while reforming existing regulations and requirements to ensure domestic and foreign firms are operating on a level playing field.