Abstract
This paper analyzes the development of China's biotechnology industry from the perspective of sectoral innovation system. The elements, which include institutions, demand, technology, industry structure, finance and firms, are discussed in detail. The finding is that the interactions, learning, and capability building are not strong in China's biotechnology industry: (1) the separation of public inputs and firms' development; (2) the separation of large firms and SMEs; (3) the challenge of globalization of biotechnology industry. This paper contributes more in the problem findings than in the solution for this industry.
