Abstract: Progress in economic and S&T globalization requires changes in China’s current way of allocating S&T resources for creating an innovative country. The concept of lead markets is helpful in effective guiding input of S&T resources and promoting development of strategic emerging industries in China. After a definition of lead markets, the article identifies shortages of traditional way of allocating S&T resources and key characteristics of the approach based on lead markets. It also proposes recommendations on allocating S&T resources based on lead markets.
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