Innovation
A 2005 report found serious shortcomings to China’s national innovation system. There were problems with services to help turn S&T work into results and the allocation of national funding to support S&T was far from optimal. Sometimes researchers became short-sighted if they get too close to the market. Another serious problem was that companies facing severe competition looked first to purchase foreign technology rather than investing in developing technology and technology development capacity at home in China. Many of the patent applications came from medium sized enterprises (70%) since small enterprises invest little in research. China's hierarchical, top-down society where authority is greatly respected and feared has been argued to stifle creative debate.
China in a 2006 report outlined policies for improving innovation. They include 20 large megaprojects in areas such as nanotechnology, high-end generic microchips, aircraft, biotechnology, and new drugs. This is combined with a more bottom-up approach on a Silicon Valley model consisting of small start-ups, venture capital, and cooperation between industry and universities.
It has also been argued that China is the world leader in making small, innovative improvements to existing designs. One example is continual improvements to the design of power supplies making them gradually smaller, less expensive, and more energy efficient. This may not create completely new products or create headlines but may be more important for creating employment.
Read more about this topic: Science And Technology In The People's Republic Of China
Famous quotes containing the word innovation:
“Both cultures encourage innovation and experimentation, but are likely to reject the innovator if his innovation is not accepted by audiences. High culture experiments that are rejected by audiences in the creator’s lifetime may, however, become classics in another era, whereas popular culture experiments are forgotten if not immediately successful. Even so, in both cultures innovation is rare, although in high culture it is celebrated and in popular culture it is taken for granted.”
—Herbert J. Gans (b. 1927)