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Different from Marx's analysis of the dialectical relationship between the production and realization of surplus value, the Okishio theorem only shows one aspect of the contradictory movement of the total social capital, that is, the reverse effect of the realization of surplus value on the production of surplus value.

The production of surplus value and the realization of surplus value are simplified into one process. This simplification eliminates the contradiction between the production and realization of surplus value, and the antagonistic contradiction between accumulation and consumption and the antagonistic production-distribution relationship in capitalist society are naturally covered up.

Therefore, it cannot explain the actual expansion way of the falling general rate of profit as the historical development law of capitalism. Nevertheless, it should be noted that the Okishio theorem places the analysis of the general rate of profit back into the social reproduction model with department equilibrium, which points out the significance of wage income to the realization of surplus value and outlines the macro mechanism of the realization of surplus value reacting to the production of surplus value. It also strongly promotes the research progress of the law that the profit rate tends to decline.

The mistake of the Okishio theorem is that the exchange process in the labor market forms the real wage rate. It determines the production price of wage goods, which thereby determines that the production price of capital goods and general rate of profit, the production of surplus value and realization of surplus value are simplified into the same process, and only the value that can be realized is the real value.

The discriminative thinking that Chinese entrepreneurs are weak in innovations is widespread. But market competition, which is the main drive for innovations, has been introduced to post‐planning‐economy China for only 30 years or so, and China has only ten years' experience in modern global competition after her entry into the WTO in 2001. Who can say China will not be as innovative as today's advanced counterparts? The purpose of this paper is to explore the possible internal consistencies between one traditional Chinese philosophy, I Ching and modern Western innovation management science. The authors also empirically test the relations between I Ching tradition and innovation performances using cross country data.

First, the authors textually analyzed the consistencies between the book of I Ching and Western innovation management principles, then with that in mind collected cross‐country panel data and tested the hypotheses empirically.

It is found that the philosophies embedded in I Ching could be applied to Western innovation management practices, and cross‐country empirical analysis shows that countries with I Ching tradition achieve better innovation performances, ceteris paribus.

Macro country‐level data were used to test the hypotheses instead of using micro firm‐level survey data. Because the macro data were not collected purposefully for this research, i.e. the authors only borrowed rather than collected the data, perhaps the persuasiveness of the empirical results will be weakened. The authors' future researches in this regard will be based on survey data.

Chinese entrepreneurs should have the confidence that Chinese ancient wisdoms are their strength rather than weakness in innovation activities.

The paper is pioneering in consciously combining I Ching philosophy with Western innovation management sciences. With this kind of synthesis, the paper constitutes a Chinese friendly road map for entrepreneurs to build innovation organizations.

This article aims to present the second part of an interview with Dr Xiao-Ping Chen. The focus is on her experience in, and insight on, Chinese management research.

This paper is based on a recent interview with Dr Xiao-Ping Chen.

Dr Xiao-Ping Chen shared her research experience and insight in the following aspects: identifying topics in Chinese management research, collaborating with Chinese domestic scholars, and approaching a research question or idea to make research fruitful with evolving research agenda on Chinese guanxi. She also shared her insights on exploring new research topics vs following or extending others' ideas, and how the gap between research and practice might be bridged.

Dr Chen's research experience and insights provide an exemplary case for junior scholars to deal with the challenges in conducting and publishing Chinese management research, particularly in how to take an “insider's view” in identifying and engaging in interesting and valuable research.

The interview profiles a picture of a scholar in Chinese management research.

To examine the way that China's cultural traditions affect the country's approach to innovation management and evaluate the impact of the philosophy contained in the ancient I Ching text on effectiveness in translating research spending into patent applications.

Compares innovation performance between countries with and without an awareness of the I Ching philosophy as part of their cultural tradition. Presents an econometric analysis of the relationship between research expenditures, proportion of population engaged in research and relative levels of patent applications in nine countries.

Ask people about China today and the first thing they are likely to talk about is economic growth and the sheer volume of goods that the country manufactures and sends to Europe and America. It is unlikely though, that they will mention creativity and innovation. And yet, China's total number of patent applications rose tenfold between 2000 and 2007, from almost 20,000 to around 200,000 – only just behind Japan and the USA. This is a country that is changing fast, but it still only has ten years of experience of global competition – a key driver of innovation for many companies. It is worth asking whether exposure to western management techniques is as significant as China's long history and distinctive culture. How can Chinese entrepreneurs most effectively develop innovative organizations?

Highlights both China's modest relative performance in innovation to date and the speed at which the country's patent applications have grown in recent years.

Raises questions on the cultural factors affecting innovation performance for further qualitative and quantitative investigation.