China faces the dual challenges of climate change and increased energy demand. These challenges in turn increase the demand for wind energy development. Along with rapid growth in manufacturing capacity, Chinese companies have aspired to increase their innovation capacity in order to enhance their competitiveness in the market. Joint research and development (R&D) is an attractive path for Chinese companies striving to advance their R&D capacity. This paper examines joint R&D between Chinese wind-turbine manufacturing companies and foreign design firms, assessing the performance of joint R&D activities in China using the structure-conduct-performance (SCP) framework. The study found that joint R&D has improved Chinese companies' technical capacity, human resources and financial growth. However, the effect on Chinese companies' innovation capacity is still limited because of unequal technical capacities of the two sides in collaboration, as well as their preference for augmenting profits rather than technical capacity. Current joint R&D mode is only the extension of licensing mode in wind-turbine manufacturing industry. (C) 2012 Elsevier Ltd. All rights reserved.