As the final part of my four-part blog series from China (on EETimes.com), I wanted to explore one of the big questions that China faces today, and that is can it innovate?
The reason I feel so strongly about this is that if you followed my first three blog posts, I tried to make the case that the "existential lack of trust" in China fosters an environment where innovation cannot thrive. China has no independent legal system to protect intellectual property so this leaves all forms of technology vulnerable to copying. Several people I have met recently who work in China have explained that there are a few historical precedents that we need to consider before being too critical of this issue; first much of Chinese cultural history is based on highly accurate copying of calligraphy, painting and hand-crafted pottery and furniture. The ability to copy and slightly modify classical art forms is highly treasured and goes back millennia. That's the long view. The short view is that the economic revolution in China over the last 30 years has moved much faster than legal or ethical standards. Most Chinese people you meet who are over 40 have stories of incredible deprivation and hardship that most of us in the West find horrific. Many families had no control over their livelihood, education and even freedom, so when these constraints were removed, they made their own rules and why not?
Given the absolutely incredible growth of China as a low-cost producer of the world's mass-market goods, can China now become an innovative economy? On my trip I asked several people who work in China if they could name some innovative local companies. It's interesting how hard they had to think about the question. For those of you in the electronics industry you might point at Huawei, Lenovo and ZTE but I argue that these companies have grown by acquiring western companies (and their IP) to compete in tech markets. One friend in China who I worked with in the U.S. before he returned to China actually teaches innovation to Chinese companies so I took his opinion seriously. Ironically he teaches innovative thinking to Western companies in China because local firms are reluctant to educate their workers for fear of them leaving to work for a competitor. This constant turnover in the workforce is far more acute in China than it is here in the U.S. and I have heard numbers of 25% a year in the electronics industry and may be much higher in companies like Foxconn. When I pushed him to name local companies who he sees as innovative he could only give me two; SINA the Chinese internet leader who has created very interesting online platforms particularly around micro-blogging (Wei Bo), which is very popular. SINA could be seen as a combination of Facebook and Twitter, which are both banned in China so they have essentially recreated western platforms through protectionism (Google is having a hard time there for similar reasons). The other company he cited is a hot-pot restaurant chain that differentiates itself with excellent customer service and attention to detail. The name of the chain is hard to translate but I went to one in Shanghai with a couple of colleagues and was impressed with the experience but it's hardly innovation by western standards.
One of the reasons I write this blog is to stimulate debate in our industry and I'm sure this blog will get things moving but I do want to make clear that I am not trying to incite a culture war or make this a platform for China bashing. If history is any guide I think that there will be some Chinese companies who emerge in the global electronics design industry and I look forward to working with them but what their path to success will be is not yet apparent. Please feel free to comment and when I come across innovative companies, I will blog about them here.
David Blaza is vice president of UBM Electronics, which publishes EE Times.
Becaues its easer to steal.
they are just picking the low lying fruit right now. This story is just a play on fears. We need equal trade ristrictions and fees that match the countries of origins fees and restricions. When they start to innovate, and thet will then they will need to protect their IP and they will only be able to protect it if they start protecting other countries ip.
HSR speed improvement is by no means an innovation, it is just a modification. Japan and German/France have the Maglev to break the world record.
China lacks innovation is a fact,just look at the eagerness of country's leaders want to win the science Nobel prizes. You won't see it in another decade. Japan had several of them before the WWII. Morris Chang, The TSMC CEO, said it will take China a long long time to catch up in the semiconductor manufacturing. As for now, it is just buying the IPs to move forward. If IBM stops the sell process recipes, then the manufacturing stops moving forward.
Before we invest ourselves too much into philosophical and cultural reasons for lack of IP protection in China, let's remember that IP is a relatively new concept in the Western world. The British publishers were complaining vociferously about unauthorized reprinting of their books in the 19th century US; Dickens was livid about it, until he figured out that he can earn as much by doing reading tours.
Throughout history, people only innovate when the status quo is insufficient to perform the desired function. Ideas have been pouring into China from all over the world by the zillions, so they probably don't feel any necessity to innovate.
I recently boaught some computer parts from an all Chinese company and the Engineering was impressive. I think once they discover a need to innovate, because the current technology no longer meets their needs, they will do just fine and surprise the world.
What I'm seeing right now is that China seems to be a mixed bag. Yes, there's blatant pirating and lots of copying other's products. As the author of The EMC Blog for Test & Measurement World, I wrote about one company that was reselling pirated product regulatory standards (e-copies) for a small fraction of the selling price from legitimate standards organizations. See:
On the other hand, I see real innovation in the expanding hobby electronics field. Up and coming companies such as www.SeeedStudio.com and DealExtreme (http://dx.com) provide basic building blocks for enthusiastic hobbyists, who are innovating like mad.
For example, a group of Chinese engineering enthusiasts designed and built a 3 MHz bandwidth digitizing oscilloscope with auto measurements and built-in signal generator that's literally the size of a business card. See:
Another example is the development of 3D printers, where the price has gotten down to the level of a high-quality paper printer (~$500).
One last example is Rigol Electronics. This company makes low-cost "budget" test equipment. And yes, they tend to copy the "look and feel" of some of the big-name T&M company products...but, at the same time, they are adding features that some of the big names don't even have. One example is their new DSA815TG spectrum analyzer (with tracking generator and EMI option), which provides a complete EMI pre-compliance solution for under $2k - about 1/10th the price of the nearest competitor. See my review here:
Admittedly, the Chinese have a long way to go where it comes to ethics and legal protection of intellectual property. But it will happen...in time.
Maybe this (original Norwegian) article about Chinese engineers is of interest:
I'm pretty sure China will rock the world on invention in the not too distant future. We've recently seen some microprocessor and phone related stuff, and its probably just the beginning. But as many new inventions are build on top, or on the side of old inventions, it may be hard to invent totally from scratch.
Competitors, partners, and customers in our interdependent semiconductor industry often have mutual interests that could benefit from cooperation. By offering customers efficiency, we’d all win. Sadly, that’s not how things often work.