The hypothesis that this thesis explores is that the evolutionary transition process undertaken in China has contributed to sustained growth in part by facilitating learning, both government learning and learning by other participants in the economy, in terms of innovation and institutional change. Learning by doing, especially by the government in its role of driving strategic innovation and institutional change, has been central to China's achievement. This is not possible in an abrupt transition process, but has been a key feature of China's evolutionary process of transition from plan to market.