China: the next innovation hot spot for the world

Abstract

Purpose

Nowadays, China's economy is climbing up the value curve, transitioning from the low-cost manufacturing of basic products to the assembly of high-tech products and more recently to innovation-led growth. This article gives an overview of this dynamic. The authors first give a succinct historical perspective, then describe the present situation; lastly they look at issues for the near future. The authors contend that Western firms cannot afford to be absent from the paradigm shift described in the paper. Foreign R&D in China no longer has emerging status.

Design/methodology/approach

The article builds on a review of the literature, statistical data and field experience in different Chinese technological hot spots (including Shanghai Zhangjiang, Beijing Zhongguancun, and Suzhou high-tech parks).

Findings

The article highlights five areas where technical change has taken place in China. The assembled facts depict the constitution of a credible Chinese system of innovation. Examples of recent accomplishments in different industries argue for the sustainability of these advances.

Research limitations/implications

This paper can be considered as an essay reflecting the authors' understanding of the Chinese situation; as such, it may be subjectively biased.

Practical implications

The paper provides arguments for Western managers to convince decision makers of China's new role on the innovation and R&D map; Western managers should definitely be part of this move.

Originality/value

The paper highlights a major change: China is still a low-tech country; but it has developed world-class islands of knowledge for innovation and technology creation.

Citation

Haour, G. and Jolly, D. (2014), "China: the next innovation hot spot for the world", Journal of Business Strategy, Vol. 35 No. 1, pp. 2-8. https://doi.org/10.1108/JBS-05-2013-0037