China’sextraordinaryeconomicdevelopmentisexplainedinlargepartbythewayitinnovates.Contrarytowidelyheldviews,China’sinnovationmachineisnotcreatedandcontrolledbyanall-powerfulgovernment.Instead,itisacomplex,interdependentsystemcomposedofvariouselements,involvingbottom-upinnovationdrivenbyinnovatorsandentrepreneursandhighlypragmaticandadaptivetop-downpolicy.Usingcasestudiesofleadingfirmsandindustries,alongwithstatisticsandpolicyanalysis,thisbookarguesthatChina’sinnovationmachineissimilartoanaturalecosystem.Innovationsintechnology,organization,andbusinessmodelsresemblegeneticmutationswhichareinitiallyrandom,self-serving,andisolated,butthebestfittingareselectedbythemarketandtheirimpactsareamplifiedbytheinnovationmachine.ThismachinedrawsonChina’smultitudemanufacturers,supplychains,innovationclusters,anddigitallyliteratepopulation,connectedthroughsuper-sizeddigitalplatforms.China’sinnovationsuffersfromalackofbasicresearchandrelianceuponcertaincriticaltechnologiesfromoverseas,yetitsscale(size)andscope(diversity)possessattributesthatmakeitself-correctingandstrongerinthefaceofchallenges.China’sinnovationmachineismosteffectiveinapolicyenvironmentwherethemarketprevails;policyinterventionplaysasignificantrolewhenmarketmechanismsareprematureorfail.ThefuturesuccessofChina’sinnovationwilldependoncontinuingpolicypragmatism,massinnovation,andentrepreneurship,andthedevelopmentofthe’newinfrastructures’.
DIVERSITY INNOVATION MACHINE CHINA SIZE
