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  • 4 - Exploring the Role of Government Involvement in Innovation

  • from Part I - Drivers of Innovation in Emerging Markets
  • Edited by Fernanda Cahen, Lourdes Casanova, Cornell University, New York, Anne Miroux, Cornell University, New York
  • Book:
    Innovation from Emerging Markets
    Published online:
    15 March 2021
    Print publication:
    25 March 2021, pp 95-121

  • Summary

    Chapter 4 explores the role of government involvement as a driver for innovation and highlights the variety of approaches followed in EMs. The chapter examines this issue through two very distinct case studies. One is the case of State Grid Corporation of China (SGCC), a state-owned company operating in the electricity sector and the fifth-largest firm in the world by revenues. SGCC has rapidly expanded globally, partly thanks to a technology it developed that reduces energy losses during electricity transmission. Its case illustrates the determined and proactive role played by the state to make China an innovation leader in a number of areas. The other is the case of INVAP, an innovation-based state-owned Argentine company that specializes in the production of nuclear reactors and satellites. INVAP and SGCC are just two samples of a greater universe of highly competitive SOEs, that have the capabilities to innovate and grow. Both cases illustrate case how the collaboration of the state and the firm has encouraged internationalization and innovation.