China's Plan to Innovate
China is making a move to be a leader in science, medicine, technology, R&D, and energy -- and the government is leading the charge to innovate
At Leanovations, we teach and coach Lean and Innovations, which is imperative to compete globally and it is not about secret formulas; it is about strong leadership developing new business models and play-to-win strategies that encourages a true value creation. In January, China’s President Hu Jintao set the tone with his call for China to make the transition from a manufacturing-based economy to an innovation-based one.
How far will China go in its attempt to build a more modern flexible economy? In Beijing, innovation is the buzzword. Innovation was a major theme at the recently concluded National People's Congress, with the government unveiling its latest five-year plan calling for big increases in spending to nurture innovation.China is targeting a broad range of sectors, including some controversial areas such as stem cells, gene therapy, and genetically modified crops; and some areas that the U.S. has long dominated, including software, semiconductors, and space exploration. China aims to become a leader in emerging technologies such as renewable energy sources ranging from solar, hydro, and wind power to fuel cells. By 2050, China intends to surpass the U.S. and become the biggest player in the world of science.There are many reasons that Beijing wants to push the innovation agenda. One is national pride: China believes it should be a leader, not a follower. Another reason is national security. The Communist regime, does not like being at the mercy of foreigners for key technologies.There are solid economic reasons for China to reduce its reliance on smokestack industries that have devastated the environment and dramatically increased China's consumption of oil. The leadership has been searching for a new, more sustainable model for growth and with innovation the hope is that the environmental cost will be much lower."As a result, the government is aggressively boosting the profile of China's scientists and engineers. Top government officials routinely exhort scientists and business leaders to get with the program and become more innovative. The government has unveiled an ambitious long-term plan to build its innovation economy. A big part of the strategy is money: Today, China devotes only 1.2% of its GDP to R&D spending, and the government has announced its intention to boost that figure to 2% by the end of the decade and 2.5% by 2020, with the government pitching in about 40% of the total, and the private sector contributing the rest. By then, China will be spending $110 billion annually on R&D, putting the country in the same league as the U.S. and Japan.
China is making a move to be a leader in science, medicine, technology, R&D, and energy -- and the government is leading the charge to innovate
At Leanovations, we teach and coach Lean and Innovations, which is imperative to compete globally and it is not about secret formulas; it is about strong leadership developing new business models and play-to-win strategies that encourages a true value creation. In January, China’s President Hu Jintao set the tone with his call for China to make the transition from a manufacturing-based economy to an innovation-based one.
How far will China go in its attempt to build a more modern flexible economy? In Beijing, innovation is the buzzword. Innovation was a major theme at the recently concluded National People's Congress, with the government unveiling its latest five-year plan calling for big increases in spending to nurture innovation.China is targeting a broad range of sectors, including some controversial areas such as stem cells, gene therapy, and genetically modified crops; and some areas that the U.S. has long dominated, including software, semiconductors, and space exploration. China aims to become a leader in emerging technologies such as renewable energy sources ranging from solar, hydro, and wind power to fuel cells. By 2050, China intends to surpass the U.S. and become the biggest player in the world of science.There are many reasons that Beijing wants to push the innovation agenda. One is national pride: China believes it should be a leader, not a follower. Another reason is national security. The Communist regime, does not like being at the mercy of foreigners for key technologies.There are solid economic reasons for China to reduce its reliance on smokestack industries that have devastated the environment and dramatically increased China's consumption of oil. The leadership has been searching for a new, more sustainable model for growth and with innovation the hope is that the environmental cost will be much lower."As a result, the government is aggressively boosting the profile of China's scientists and engineers. Top government officials routinely exhort scientists and business leaders to get with the program and become more innovative. The government has unveiled an ambitious long-term plan to build its innovation economy. A big part of the strategy is money: Today, China devotes only 1.2% of its GDP to R&D spending, and the government has announced its intention to boost that figure to 2% by the end of the decade and 2.5% by 2020, with the government pitching in about 40% of the total, and the private sector contributing the rest. By then, China will be spending $110 billion annually on R&D, putting the country in the same league as the U.S. and Japan.
