This book explores technology creation in China, offering a holistic picture of the national system of innovation. By analyzing companies of various sizes and sectors and taking a deep dive into the role of the Chinese government, the author reveals how China has become the market leader in innovative technologies. The author investigates where innovation is being produced at a regional level, the contribution of Chinese start-ups and large companies, the value of registered patents in China, and what this all means to Western countries.
An insightful resource to students and scholars interested in Chinese business and economy, this book illustrates the various elements that are required for countries to develop innovative outputs, and shows that China has developed all of these components.
Author(s): Dominique Jolly
Series: Palgrave Macmillan Asian Business Series
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 159
City: Cham
About the Author
Contents
List of Figures
List of Tables
1: Introduction
References
2: The China Public Policy for Technology Creation
2.1 Learning from Developed Countries in Sino-Foreign JVs
From Maoist Autarky to Deng’s Opening
Technological Learning Originated from Sino-Foreign Joint-Ventures
Foreign Companies Have Also Learned
Other Means for Learning
2.2 The Reproduction of Foreign Technologies in Chinese Companies
Alliance Portfolios Built by Chinese Companies
Learning Through Acquisitions
2.3 Building Resources for “Indigenous Innovation”
Indigenous Innovation Is Not a New Idea
Mature Industries Are Difficult to Penetrate
Technological Catch-up Is Effective in Several Sectors
The Challenge Remains in Several Sectors
Toward a Breakthrough?
2.4 China Succeeded in Achieving Astonishing Results in Publications and Patents
A Booming Publications Record
Registered Patents Challenge US Supremacy
2.5 Conclusion
References
3: The Chinese National System of Innovation
3.1 An Efficient Education System
A Gigantic Brainpower Machine
The “Gaokao” Filter: The Chinese High-School Diploma
Universities in China: Volume, But Not Only
The Weaknesses of the Education System
Change of Context
3.2 A Powerful Chinese Academy of Sciences
A Recent Comeback to Science
Steering Both Political and Technical Issues
Fundamental Research Stays Behind at CAS
The Chinese Academy of Engineering
3.3 Science and Technology Parks
More Than 100 Parks Were Created
A Techno-Driven City: The Example of Shenzhen
3.4 A Myriad of Hi-tech Startups and Unicorns
Profusion
Internet, Pharma, Biotech, Artificial Intelligence, Electric Cars
Success and Failures
3.5 Financing Technology
3.6 An Increasing R&D Investment by Chinese and Foreign Firms
The Move Is Massive and Recent
China Devotes Less Resources to Fundamental Research Than Other Industrialized Countries
Private Companies Are the Main Engine
What Foreign Companies Can Do?
Challenges to Foreign Companies
3.7 A Protecting Regulatory Framework
3.8 Conclusion
References
4: The Iconic Case of Telecommunications
4.1 Huawei: Only Technological Advantages?
A Private or a Public Company?
An Impressive Journey: From the Lost Cost to the Innovative Company
The Denial of the USA
The Refusal to Open Up to Chinese 5G Extended Beyond the USA
The Daughter of the Founder Under House Arrest in Canada
The US Threat to Supplies Seriously Impacted Huawei
Forward Vertical Integration in Smartphones
The Diversification Strategy
4.2 Xiaomi: A Dramatic Growth
A Serial Entrepreneur
The Company Experienced Dramatic Growth
The Cooperation with the Chinese Communist Party
A Disruptive Strategy
Emergent Countries Have Preceded Developed Countries
The IOT Diversification
4.3 China Mobile: One Billion Subscribers
4.4 Conclusion
References
5: Companies of the Chinese Internet: The Only Potential Rival to Silicon Valley
5.1 Alibaba: The E-commerce Giant
Only 20 Years to Become the World’s Largest E-commerce Company
Ubiquitous Diversification Produced a Comprehensive Ecosystem
Foreign Equity Holders
Expanding Commercially Abroad
5.2 Baidu: The Search Engine
The Chinese Search Engine
Google Is Not Dead
Baidu Diversification Strategy
Investing in R&D
5.3 Tencent: Gaming and Messaging
A Core Business in Social Media and Gaming
A South African Shareholder
Diversification of Functions
Technological Innovation to Prepare the Future
5.4 Other Important Players
Jingdong Mall (JD.com), Yihaodian, and Pinduoduo: The Virtual Supermarkets
Meituan and Ele.me: The Chinese Uber Eats
Didi: Better Fitted to Its Territory Than Uber
ByteDance
5.5 Conclusion
References
6: Applications in Other Industries: From Technological Catch-up to International Development
6.1 Rare Earth: A Chinese Worldwide Quasi-Monopoly
China Became a Leader After the USA Stopped Their Own Production
Looking for Solutions
6.2 The Photovoltaic Business: China Overtook the USA and Europe
6.3 The Chinese High-Speed Train: Technological Digestion
An Example of Technological Digestion
Thousands of Kilometers
International Markets as the Target
6.4 The Nuclear Plants: A Fast Development
The First Worldwide Market
Borrowing from Developed Countries
On the Way for International Markets
6.5 Manufacturing Industries
Made in China 2025 Plan
Increasing Automation
6.6 Conclusion
References
7: Applications of the Future
7.1 An Established Space Industry
China Has Accumulated a Long Experience of Space Missions
A Chinese Space Station Has Been Initiated
The Ambitions of the Chinese Space Program Are Military, But They Are Also Commercial
7.2 Electric-Powered and Driverless Cars
The Electric Car Sector, a Priority for the Chinese Authorities
From a Competitive Standpoint, the Electrical Car Sector Is in a Period of Fluidity
The Electric Car Sector Contains Three Categories of Competitors
The Battery Industry Is Very Active
The Potential of Autonomous Vehicles
7.3 The Block-Chain on the Government Agenda
One Additional Paradox
China Is Exploring Different Applications
7.4 China and the Global Competition for Artificial Intelligence
The Competition Is Between China and the USA
Chinese Economic Players
Chinese AI Companies Start with at Least Four Advantages
The Export of Digital Authoritarianism and Other Dark Sides
7.5 The Fintech
7.6 Conclusion
References
8: Seven Challenges
8.1 Will China Solve Its Lack of Quality?
One Century Turmoil and Its Negative Impact on Quality
Foreign Companies Acted as Quality Teachers
8.2 Will China Be Able to Boost Its Potential for Creativity?
The Economic Landscape of China Has Changed Considerably
Quantity or Quality?
China Is Developing an Appetite for Startups
Favorable Conditions for Creativity Exist
The First Obstacle to Taking Original Positions Is the Culture
8.3 Will China Overcome Its Productivity Disadvantage?
8.4 Will China Fall into the Middle-Income Trap?
These Countries That Escaped the Trap
Will China Escape the Trap?
8.5 Will China Impact on Global Norms?
The Standards Are Set by the Chinese State
China Is No Longer Just Looking for a National Impact, But for a Global Impact
8.6 Will China Deal with Societal Issues?
8.7 Will China Overcome the Limits of the Belt and Road Initiative?
The Most Significant Chinese Geopolitical Initiative of Recent Decades
One Trillion-Euro Initiative
The Digital Component
The Dominant Chinese Interests
The Growing Oppositions
8.8 Conclusion
References
9: The Conductor and Its Disciplined Performers
Index
