Major sources of production improvement and innovation growth in Chinese enterprises

Using a data set based on a cross-sectional firm level survey conducted by the World Bank in year 2001, in this paper we investigate the major sources of production improvement and innovation growth of Chinese enterprises from ten major industries and five major cities. In terms of production improvement, the production network, R&D and innovation and openness are the crucial factors; and in terms of innovation growth, it could be enhanced through raising R&D inputs, training, improving managers' education, outsourcing and participating in a production network.