20130620_ceo_guide_innovation_in_china

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1、FEBRUARY2012strategypracticeACEO’sguidetoinnovationinChinaGordonOrrandErikRothDynamicdomesticplayersandfocusedmultinationalsarehelpingChinachurnoutagrowingnumberofinnovativeproductsandservices.Intensifyingcompetitionliesahead;here’saroadmapfornavigatingit.Chinaisinnovating.Someofitsachievement

2、sarevisible:adoub-lingoftheglobalpercentageofpatentsgrantedtoChineseinventorssince2005,forexample,andthegrowingroleofChinesecompaniesinthewind-andsolar-powerindustries.Otherdevelopments—suchasadvancesbylocalcompaniesindomesticallyorientedconsumerelectronics,instantmessaging,andonlinegaming—may

3、wellbeescapingthenoticeofexecutiveswhoaren’tonthegroundinChina.Asinnovationgainssteamthere,thestakesarerisingfordomesticandmultinationalcompaniesalike.ProwessininnovationwillnotonlybecomeanincreasinglyimportantdifferentiatorinsideChinabutshouldalsoyieldideasandproductsthatbecomeseriouscompeti-

4、torsontheinternationalstage.Chinesecompaniesandmultinationalsbringdifferentstrengthsandweaknessestothiscompetition.TheChinesehavetraditionallyhadabiastowardinnovationthroughcommercialization—theyaremorecomfortablethanmanyWesterncompaniesarewithputtinganewproductorserviceintothemarketquicklyand

5、improvingitsperformancethroughsubsequentgenerations.Itiscommonforproductstolaunchinafractionofthetimethatitwouldtakeinmore2developedmarkets.Whilethequalityoftheseearlyversionsmaybevariable,subsequentonesimproverapidly.1Chinesecompaniesalsobenefitfromtheirgovernment’semphasisonindigenousinnovat

6、ion,underlinedinthelatestfive-yearplan.Chineseauthoritiesviewinnovationascriticalbothtothedomesticeconomy’slong-termhealthandtotheglobalcompetitivenessofChinesecompanies.Chinahasalreadycreatedtheseedsof22SiliconValley–likeinnovationhubswithinthelifesciencesandbiotechindustries.Insemiconductors

7、,thegovernmenthasbeenconsolidatinginnovationclusterstocreatecentersofmanufacturingexcellence.Butprogressisn’tuniformacrossindustries,andinnovationcapabilitiesvarysignificantly:severalbasicskillsareatbestnascentwithinatypicalChineseenter