private entities. “The real issue,” he said, “is that you want these companies to want to locate in the parks. The key is to have policies that make it possible for risk capital to follow.”

Dr. Shen commented that in China there are clusters of research institutes, universities, and laboratories around all the prominent high-tech parks. “The idea is that these are places where a lot of the top talents from different fields are clustered—this then is what attracts private enterprises. There is a multilateral collaboration among government-sponsored research institutions and those of the private industries, both locally and internationally.”

Dr. Wessner ended the panel discussion by reminding the participants that “if the markets were working fine, none of you would be here. Markets are rarely, if ever, perfect, and you’re trying to make them work better.” In particular, he said, the markets do not work well in providing early-stage finance for start-ups. “Planners in Asia have looked at the outcomes of two centuries of markets that didn’t work to the advantage of young companies, and decided that they would like to change the terms of those markets. That’s what they are doing, just as the United States did 50 and 100 years ago. The debate is not one of whether something called ‘the market’ is ‘efficient,’ or whether it is ‘distorted.’ The issue, more practically, is how to help real-world markets work better by applying the right policies.”



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