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Sea-Turtles’ and Importing a Culture of Innovation: Trends in Chinese Human Capital Migration in the 21St Century

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Sea-Turtles’ and Importing a Culture of Innovation: Trends in Chinese Human Capital Migration in the 21St Century Chinese ‘Sea-Turtles’ and Importing a Culture of Innovation: Trends in Chinese Human Capital Migration in the 21st century By Hannah Sieber Submitted in Partial Fulfillment of the Requirements of Distinction in International Comparative Studies Advisor: Tim Lenoir, Kimberly Jenkins University Professor Sieber 2 Contents Illustrations ..................................................................................................................................... 3 “If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people” - Confucius 551-479BC. .................................................................. 7 Preface ............................................................................................................................................ 8 Introduction ................................................................................................................................. 11 Chapter One: Historical Legacies and Innovative Tendencies ............................................... 20 Entering a Global Environment ................................................................................................................................ 23 Solving the Innovation Gap: The Promise of Human Capital ............................................................. 27 The Rise of Returnees .................................................................................................................................................... 27 Government Policies towards Returnees ................................................................................................................ 31 Who Were China’s First Returnees? ....................................................................................................................... 35 Appendix to Chapter One ............................................................................................................................ 37 Chapter Two: From Imitation to Indigenous Innovation ....................................................... 42 An Academic Perspective on Innovation ................................................................................................... 42 Critical Areas of Consensus in Innovation Scholarship .................................................................................... 44 Creating a Knowledge-Based Economy: China’s 2006 Innovation Policy ........................................ 45 From Global Factory Innovation to Self-Made Innovation? ........................................................................... 46 Global Reactions to China’s MLP ............................................................................................................................ 49 Innovation in the Chinese Market Place ................................................................................................... 53 Incentives: The Birth of Special Economic Zones ............................................................................................... 55 Institutions in Modern China ...................................................................................................................................... 58 Financing a New Venture ............................................................................................................................................ 60 The Urban Environment ............................................................................................................................................... 63 Outputs: Patents and Papers ...................................................................................................................................... 63 Research ............................................................................................................................................................................ 72 Lesson from Foreign Owned Invention and Homegrown Research ................................................... 78 Appendix to Chapter Two ............................................................................................................................ 81 Chapter Three: Changing Trends in Human Capital: the New ‘Returnee’ ......................... 83 The Role of Human Capital in Innovation ............................................................................................... 83 Overseas Chinese & Non-Returnees .......................................................................................................... 85 Profile of the Modern Returnee ................................................................................................................................. 85 American Policies Towards Chinese Immigration .............................................................................................. 87 The Rising Middle Class: A New Economic Phenomenon in China ............................................................. 93 The Lonely Returnee ................................................................................................................................................... 102 The Repatriation Decision: Opinions from Raleigh-Durham ............................................................ 104 Supplanting the Brain Drain: China’s Brain Circulation ................................................................... 109 The Returnee Entrepreneur ...................................................................................................................................... 109 Case Study of Zhang Xin ........................................................................................................................................... 112 Conclusion: The New Brain Drain: The Exodus of China’s Dreams .................................. 116 Reference List ............................................................................................................................ 122 Sieber 3 Illustrations I. Figures Chapter One Figure 1.1: Returnees By Year ...................................................................................................... 29 Chapter Two Figure 2. 1: Creativity to Economic Growth Flow Chart ............................................................. 54 Figure 2. 2: (Shanghai Pudong's) Zhangjiang (High-Tech Park) Entrepreneurship Source ......... 58 Figure 2. 3: Total Patents Filed & Granted in China from 1997 - 2011, by Residents, Non- Residents, and Abroad .......................................................................................................... 65 Figure 2. 4: Percentage of Patents Granted as Filed by Applicant Categories: Resident, Non- Resident, and Abroad ............................................................................................................ 67 Figure 2. 5: Type of Patent Filed by Foreigners and Residents .................................................... 69 Figure 2. 6: Patent Applications & Grants for Invention Patents at Total .................................... 70 Figure 2. 7: Educational Backgrounds of 2006 China Center for Economic Research ................ 77 Chapter Three Figure 3. 1: 2012 Top International Destinations for Undergraduate, Masters, and PhD Study .. 86 Figure 3. 2: Chinese Students in the US as % of Total International Students in US .................. 88 Figure 3. 3: Differences between different Immigration Documents ........................................... 89 Figure 3. 4: Duke International Students from China by Year, by Program ................................ 92 Figure 3. 5: US Media Outlook on Overseas Chinese in US ........................................................ 97 Figure 3. 6: Greatest Influencing Factors in Choosing to Study Abroad ...................................... 99 Figure 3. 7: Factors Influencing One's Decision to Study Abroad ............................................. 106 Figure 3. 8: US 1-94 Visas from 2002-2016, by Region ............................................................ 114 Figure 3. 9: I-94 Visas Awarded in 2011 by Country and Region ............................................. 114 II. Tables Chapter One Table 1.1: Education Policies Towards Returnees from 1989-2011 ............................................ 38 Chapter Two Table 2. 1: Statistics on R&D of Hi-Tech Enterprises in Zhangjiang Park .................................. 57 Table 2. 2: Statistics on Foreign Investments for Zhangjiang Hi-Tech Park ................................ 62 Table 2. 3: Foreign Investment Granted to the Zhangjiang Hi-Tech Park in 2004 ...................... 62 Table 2. 4: Percentage of Patents Granted as Filed by Applicant Categories: Resident, Non- Resident, and Abroad ............................................................................................................ 66 Table 2. 5: Patent Grants by Percentage ....................................................................................... 71 Table 2. 6: Publications by the Chinese Academy of Sciences from 1997-2009 ......................... 73 Table 2. 7: National Total of Publications in China from 1998-2009 .......................................... 75 Table 2. 8: Key Policies in Science & Technology Administration and Innovation in China and the US since 1982 ................................................................................................................. 81 Chapter Three Table 3. 1: Overseas Degrees Authenticated by CSCSE, 1991-2005 ..................................................
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