From our decades of field experience and research in China, and the dozens of case studies we have collectively produced, we see some merit in all those views (but we must point out that many of the most innovative Western firms were founded by engineers). Those criticisms don't tell the entire story, however. China has no lack of entrepreneurs or market demand. And given the government's enormous wealth and political will, China has the potential to set the kind of economic policies and build the kind of education and research institutions that propelled the U.S. to technological dominance. But will that potential be realized? We see considerable challenges.