Green Innovation in China

China’s rapid economic growth combined with its large population has created substantial environmental pressures, not least the need for efficient and sustainable energy provision. This chapter addresses the problem of transition to sustainable energy sources. It shows how the Chinese response to the sustainability challenge has depended on both “hard” (technological) and “soft” (institutional) innovations. The chapter also shows how the sustainability challenge has presented a window of opportunity for industrial development and competitiveness in the green economy. Finally, it discusses the wider global implication of China’s mounting innovation capacities in green technologies.