Patenting in China has been growing at an annual double-digit rate over

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Absfruet-The Run by Run Controller provides a framework for controlling a process which is subject to disturbances such as shifts and drifts as a normal part of its operation. The Run by Run Controller combines the advantages of both Statistical moCess Control (SPC) and Feedback Control. It has three components: Rapid Mode, Gradual Mode, and Generalized SPC. Rapid mode adapts to sudden shifts in the process such as those caused by maintenance operations. Gradual mode adapts to gradual drifts in the process such as those caused by build-up of deposition inside a reactor. The choice between the two modes is determined by the outcome from Generalized SPC which allows SPC to be applied to a process while it is being tuned. The Run by Run Controller has been applied to the control of a silicon epitaxy process in a barrel reactor. Rapid mode recovered the process within 3 runs after a disturbance. Gradual mode reduced the variation of the process by a factor of 2.7 as compared to historical data.

In bridging the technology gap with the OECD nations, developing economies have access to three avenues of technological advance: domestic R&D, technology transfer, and foreign direct investment. This paper examines the contributions of each of these avenues, as well as their interactions, to productivity within Chinese industry. Based on a large data set for China's large and medium-size enterprises, the estimation results show that in-house R&D significantly complements technology transfer-whether of domestic or foreign origin. Foreign direct investment, which we assume is an important channel of proprietary technology transfer, does not facilitate the transfer of market-mediated foreign technology. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

The capacity of developing economies to narrow the gap in living standards with the OECD nations depends critically on their ability to imitate and innovate new technologies. Toward this end, developing economies have access to three avenues of technological advance: technology transfer, domestic R&D, and foreign direct investment. This paper examines the contributions of each of these avenues, as well as their interactions, to productivity and knowledge production within Chinese industry. Based on a large data set for China's large and medium-size enterprises, the estimation results show that technology transfer-whether domestic or foreign-affects productivity only through its interactions with in-house R&D. Foreign direct investment does not appear to facilitate the adoption of market-mediated foreign technology transfer. Firms wishing to produce patentable knowledge do not benefit from technology transfer; patentable knowledge is created exclusively through in-house R&D operations.