MANHASSET, NY -- China is going all out to transform itself from a manufacturing powerhouse to an innovation engine in the next five years, according to the latest Lux Research report.
The government’s twelfth five-year calls for accelerating the state-controlled economy’s transition from manufacturing to innovation its 30-year history of funding R&D shows no signs of slowing.
China’s public investments in scientific and high-tech research, implemented through national programs, are embedded in a complex, geographically diverse and evolving institutional landscape, constituting nearly 70 percent of all R&D funding, which reached $91 billion in 2009.
“China’s R&D funding ecosystem reveals connections between vast public research investment, corporate buy-in, and likely sources of Chinese innovation pivotal in driving the country’s future economic growth,” said Zhun Ma, Lux Research analyst and lead author of the report.
The country’s sweeping innovation agenda are driven by its current manufacturing base, a growing domestic market and an appreciation of the country’s future societal needs.
Specifically, the report cites the government's broad and substantial support for biotech and healthcare, its refined focus on renewable energy and a buttressing of its IP rights regime to reach global standards.
Fundamental R&D spending in the life sciences under 973 programs dwarfs any other area, while a National Science and Technology program will pump over CNY 27 billion ($4.26 billion) into pharmaceutical industry development including active pharmaceutical ingredients (APIs), drugs, and traditional Chinese medicine.
In renewable energy is pumping CNY 4.9 billion ($771 million) for EV-related application R&D, through funding for numerous pilot lines for next generation phtovoltaics, to CNY 1.05 billion ($165.16 million) for connecting renewable energy and electric vehicles to large-scale grids, pivotal local technology opportunities are strongly supported.
And in Intellectual property China is spreading its IP base from a few heavyweights to small and medium enterprises, and start-ups. Ma said that as Chinese IP assets gain critical mass in foreign countries, its leaders will be forced to provide greater protection to foreign IP in China in order to ensure Chinese rights are protected overseas. Changes will not be sudden but the timeline towards IP protection equality is measured in years, not decades.
If companies paying for people to develop IP shouldn't make profit off of intellectual property, then it would make sense that the person creating the invention should not get paid either. Our patent system may be in need of a serious tune up, but people with a high brain to brawn ratio are not allowed to profit from the fruits of their labors, they will stop and go move boxes or do something else that will pay the bills.
IP absolutely IS property. It is the result of an investment of hard assets to create an innovation - process, product, etc. - and it is entirely appropriate to expect protection of the ownership on that newly created asset in order to achieve a return on investment. Without that, what could possibly be the motivation for continued investment? More to the point, what would finance that ongoing investment? You have to generate profits from innovation in order to continue to fuel the process.
come on people - IP is not property. limited monopolies are granted for a purpose: to grow the whole, not to permit innovation to be hoarded. that's what's so fundamentally broken in the current worldwide IP regime: dumb MBA-think has distorted the concept into some kind of design-wise turf war, when the purpose of IP protection is to maximize innovation by letting others build on your ideas. in other words, IP doesn't mean you're somehow "owed" profits because you came up with something novel and non-obvious. (not to mention the fact that current IP schemes make a mockery of the novel/non-obvious requirement!)
I think China will want to have it both ways. Strong IP protection in order to play in the global marketplace, but reserving an idealogical right to co-opt it for the good of China. The west will depend on pragmatism to trump nationalism, which works in the short term. And the short term is all the west understands.
IP protection and, in general, moral standard have to be improved to make innovation possible. IP protection will guarantee the invention is not stolen internally. Moral standard is important in teh area of pharmaceutical research. Law may help restore the order.
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