Abstract:

This paper analyzes the role of government in local firms’ independent core technology development in China in the era of globalization and China’s joining the WTO The conclusion is that the development of local Chinese firms’ independent core technology would be very difficult without the help of the government The paper has two important contributions: (1) the discussion of the role of government is based on new theoretical analysis of the process of local firms’ independent core technology development, and (2) arguing that financial support from the government is of secondary importance compared with the influence of government on local firms’ pressure, confidence, and motivation in developing independent core technology The findings will have great significance on further strengthening the function of the government in independent core technology development, the research and recognition of the relationship among government, market and corporations

Key words: independent core technology development, role of government