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Q: Globalization and its effect on process of innovation? ( Answered 5 out of 5 stars,   1 Comment )
Subject: Globalization and its effect on process of innovation?
Category: Business and Money > Economics
Asked by: smeski-ga
List Price: $50.00
Posted: 07 Dec 2005 11:21 PST
Expires: 06 Jan 2006 11:21 PST
Question ID: 602709
How is the globalization of industry and of societies influencing the
management of technology and the process of innovation in China?
Subject: Re: Globalization and its effect on process of innovation?
Answered By: wonko-ga on 07 Dec 2005 16:03 PST
Rated:5 out of 5 stars
Globalization is strongly influencing the management of technology and
innovation in China.  Globalization presents both challenges and
opportunities.  On the one hand, advanced industrialized countries
possess virtual monopolies in a variety of areas requiring technical
know-how.  On the other hand, China is rapidly attempting to catch up
with Western countries by acquiring knowledge of foreign technologies
and encouraging students who have gone overseas for their educations
to return home as professionals.

Many experts believe that China, because it is hobbled by an immature
financial system and low spending on research and development, will be
a "fast follower" rather than a source of significant innovation in
the near future.  The country at this point is largely dependent upon
foreign investors who provide both funding and technology.  The
Chinese government heavily promotes technology transfer from foreign
companies by requiring them to set up joint ventures with Chinese
companies.  The countries also striving to improve its educational
opportunities to serve more students and decrease the brain drain
caused by students leaving to study abroad and never returning.

China continues to struggle with recognition of intellectual property
rights, which discourages innovation.  The country has insufficient
collaboration between its universities and businesses to promote
efficient technology transfer from basic research into commercial
products.  The Chinese educational system is also hampered by a
philosophy of rote learning that does not build the creativity skills
that aid innovation.  Finally, the country lacks an adequate
managerial talent pool.

Undoubtedly, in the absence of globalization and technology transfer,
China would be even further behind.  Although extremely innovative
until the end of the Ming Dynasty, decades under Communist rule
severely dampened innovation and economic development of all kinds. 
The dramatic reforms that have been ongoing since the 1980s, however,
show that country has potential to become a significant innovator in
at least some areas as it acquires the necessary technical background.
 For example, the country has the opportunity to build new
laboratories from scratch with the latest equipment because it lacks
an existing research infrastructure.




"A New Lab Partner For The US?" By Bruce Einhorn and John Carey, with
Neil Gross, BusinessWeek (August 22, 2005)

"Expert Roundtable 5 Can China and India Innovate?"  BusinessWeek
(August 22, 2005)
smeski-ga rated this answer:5 out of 5 stars and gave an additional tip of: $10.00
Thanks! Very good answer. You think you can attempt my other one?

Subject: Re: Globalization and its effect on process of innovation?
From: myoarin-ga on 08 Dec 2005 07:54 PST
This site seems to see China in a stronger position for the future:

At least as I interpreted it.  As I have heard and seen on German
media, increasingly China is not just producing to foreign companies'
specifications but being accepted to work on improvements.
I think one might compare China now with Japan at some time after WW
II.  Originally Japan only copied Western products (Leica, et al.) but
eventually moved ahead until it was self-sufficient on technology and
moved to the forefront in some areas.  How far along that road is
China now?  When will we in Europe and USA be buying Chinese name
brand products?

Google News on   Technology China    is full of sites on the subject,
from university cooperation to the Airbus being produced there.

Having read the Business Week articles, I feel that the Chinese may be
downplaying their expectations to compete with the West.  This
quotation caught my eye:

" It's too early to tell what results labs like Han's will achieve.
But experts such as Horst L. Störmer, a Nobel prize laureate and
director of Columbia University's nanotech center, have returned from
visiting China's top nanotech institutes impressed by the science.
Störmer is convinced the Chinese will become major players. "We talked
at the same level," he says, adding that the Chinese were doing
"top-notch research."

No doubt, some Chinese scientists will wind up becoming world-beaters,
challenging their counterparts in the U.S. What's important is that
researchers from both countries also expand their efforts at
collaboration. That will pay off for all."

Regards, Myoarin

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