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Offering a comprehensive review of reform policy, followed by an examination of major approaches to institutional restructuring, Shulin Gu explores the way in which China's industrial technology has responded to economic reforms. At the heart of the work is the argument that market reform and organisational change are closely interdependent. Gu outlines the interaction of the two in China and reveals the damage which may result if market reform is not accompanied by new organisational design. Analysis of these issues is drawn from first-hand experience of Chinese technology systems, supported by insights from technological innovation economics and transaction cost economics.