UP THE VALUE CHAIN
China’s stress on innovation will be a major focus at Davos summit, Fu Jing reports.
has barely budged in the past six years. Faced with rising production costs, an aging population and diminishing returns on the massive capital investments of the past three decades, China must now evolve to a model where productivity gains are generated through innovation and demand through domestic consumption.”
If that process goes smoothly, China’s ranking in measuring innovation levels may rise quickly. The government estimates it is now placed 18th to 20th globally, the estimate based on major ranking indexes.
The Global Innovation Index 2015, co-published by Cornell University, the European Institute of Business Administration and the World Intellectual Property, ranked China at 29th. When the report was first published in 2007, China’s ranking was the same.
In March, when China’s National People’s Congress holds its annual session, legislators will debate the 13th FiveYear Plan (2016-20), which will detail goals to ramp up innovation.
One promising area is the Internet-led industrial revolution worldwide, where China can be a leader and build innovative capabilities, China watchers say.
China has a mature and sizable information technology market, the world’s largest reservoir of research talent and role models such as the so-called BATs (Baidu, Alibaba, Tencent), they said, pointing out that the country has made breakthroughs in areas such as life sciences, new materials and new energy.
Charles-Edouard Bouee, global CEO of the consulting firm Roland Berger, is one of the optimists. He said the merging of Chinese resources with the global industry ecosystem in the past few years has paved the way for growth in local manufacturing.
“China has aggressively built capabilities in high-speed computing, robots, new energy vehicles and electric equipment,” said Bouee.
“For now, they are still focusing on the domestic market, but within the next five years, I won’t be surprised to see
A robot plays flute at the World Robot Conference in Beijing in November.