China doesn't yet have the rule of law, let alone the rule of IP law. They have good laws but everyone ignore them. They are too free, they can do whatever they want. The government doesn't want to spend time enforcing the law as long as the law breakers are not against the government.
The West can afford to advocate democracy and freedom because the people obey traffic lights. Traffic-light obeying people are considered to be fools over there.
Bert, you've got a good point here.
The issue is how one defines the "borrowed/digested/reinvented" model.
When I asked the panel, "what can China do to convince the world it’s serious about IPR protection," here's what
Pekin Univ.’s Chen said: “I am not a lawyer. So I am not sure how much of Chinese law should be changed.” But he quickly added, “I think the penalty for IPR infringement is too low in China. It has to be higher. I predict that IP litigation will increase in China.”
More lawyers filing more lawsuits is not anyone’s ideal scenario, but in China it might be a necessary growing pain, if only to test the fairness of China’s evolving legal system, Prof. Chen explained.
I don't buy the bit about three different ypes of innovation, frankly. In my view, innovation is always more like the last ietm listed. You're always building on something that came before. I'll bet even the wheel was invented when some clever guy got tired of moving round logs constantly, and decided to try to keep that round thing attached to the heavy object.
But there are limits to how much one can copy verbatim with impunity, and clearly China has yet to internalize that limit. Reputations, both good and bad, are built for very good reasons, almost always.