China has enjoyed spectacular economic growth over the past twenty years or so. However, Chinese regional economic development has relied on foreign direct investment, export-oriented industrialization, and other traditional growth models. While China can perhaps continue to rely on exports, cheap labor, and a huge domestic market for foreign investment for some time to come, sooner or later the question will arise; How long can China sustain economic growth based on her current strategies?
We propose in this article the endogenous growth model as an alternative and long-term growth strategy, and focus largely on its treatment of knowledge as an independent factor of production in Chinese regional economies. This article thus proposes a new institutional framework defined as a trilateral commission. The commissions are designed to advise and enhance communication between local and regional government leaders and administrators on knowledge-based collaboration and coordination among business, government, and the research community, as well as on the issue of knowledge generation and utilization.
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