A data-driven global innovation system approach and the rise of China’s artificial intelligence industry

ABSTRACT

Building upon the global innovation system (GIS) framework, this paper develops an analytical approach to incorporate data as a foundation-level resource in data-driven innovation systems and to unravel how the interplay of system resources’ spatial characteristics, multi-scalar institutions and actor strategies leads to the emergence of China’s artificial intelligence industry. China’s loose institutional regime significantly facilitates the formation of the market, legitimacy and data, while entrepreneurs and digital platforms are the key actors coupling system resources to China’s innovation system. As data become a critical resource, actors controlling data develop institutional power to shape the formation of the data-driven industry.

KEYWORDS:

• emerging industry
• artificial intelligence
• global innovation system
• data-driven innovation
• China

JEL:

• L86
• O33

ACKNOWLEDGEMENT

The authors thank all the interviewees who participated in this study and shared their thoughts.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Notes

1. OPEC = Organization of the Petroleum Exporting Countries.

Additional information

Funding

This research was supported by the National Key R&D Program of China [grant number 2020AAA0105300]; the National Natural Science Foundation of China [grant numbers 71810107004 and 71774097]; and the Tsinghua University Independent Research Program [grant number 2019THZW].