China’s rapid development is having a continuing effect upon a wide range of sectors, from Information Technology to politics. Although economic growth has slowed somewhat, it remains relatively high, and profound changes continue to occur throughout the country as it digests its newfound prosperity and the new requirements of a high tech industrial society. Information Technology is leading the way in many of these changes, and it is backed by well-funded government programs that focus development toward a goal of global leadership in Science and Technology by 2050.
One of the key elements of the Chinese plan is to improve innovation so that the country is less reliant upon invention from abroad…even as a starting point for Chinese design. This has created plans and initiatives that have seen Chinese patents rise to the most per year of any nation in the world. Patent quality aside, this has repercussions for external perceptions, investment, and for molding individual and institutional behavior toward creation of new ideas and new ventures.
Chinese innovation is not necessarily the same as Silicon Valley innovation, but it should not be viewed as insubstantial for this reason. Much of it is in processes and in ability of companies to react rather than in new product features. It has been described as “innovation with Chinese characteristics.” Of course, the overall context is that all countries innovate in areas that are of particular importance to their national goals, and the Western understanding of innovation is nowhere near as clear as many believe. But China’s innovation is further hidden by an admonition to “hide your glory,” so that its true effects or significance can be difficult to ascertain at best.
In any case, policies toward indigenous innovation are having a significant effect in raising the barriers for outside firms attempting to contribute to advanced programs in China. They are also creating further issues regarding technology transfer and IP, because a key part of how China views innovation is that it should start with a copy, then improve and refit to China. This does not create comfortable conditions for Western business.
These initiatives all create great opportunities, however, and significant new business. And China, of course, has a huge population. Interesting times, indeed!
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