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Seeing through Preconceptions: A Deeper Look at China and India • • • ALAN WM WOLFF China’s Drive Toward Innovation China is launching a multifaceted plan to reach the forefront of technology. What might help—or hurt—its efforts? China’s president, Hu Jintao, has said that his country must give priority to independent innovation in science and technology to enable China to be at the forefront of scientific and technological development. This statement is not remarkable for the leader of a major trading nation. President George W.
Bush featured the same objective in his 2006 State of the Union message. He recorded his belief that government must work to help create in the United States a new generation of innovation and an atmosphere in which innovation thrives. In his first policy statement to the Japanese Diet, Prime Minister, Shinzo Abe called for similar steps.
The European Union Commission has proposed a 10-point program for immediate actions to make the business environment in its member states more innovation-friendly. What makes Chinese government statements any more or less remarkable or credible than those of other governments’ highest officials? Answering that question requires a look at what China is planning as follow-up on its stated objective and an evaluation of the likelihood of its achieving success. In the Chinese system of governance, statements by the leadership shape national and local policies to a degree not seen in other major trading nations.
There is a singularity of purpose in China rarely found in Western governments. The pronouncements of China’s top leaders have been accompanied by an amazing array of detailed policy measures at all levels of government. China already is well into a process of industrializing. What Beijing has decided to do is “to move China from an imitation to an innovative stage of production from ‘made in China’ to ‘made by China.’ ” China’s leadership sees innovation as essential for the country to continue its economic growth, maintain political stability, support advanced military capabilities, and retain its global trade and geopolitical power.
Ma Kai, minister of China’s National Development and Reform Commission, recently gave a compelling rationale for this policy. “China’s economic growth largely relies on material inputs and its competitive edge is to a great extent based on cheap labor, cheap water and land resources, and expensive environmental pollution,” he said. “Such a competitive edge will be weakened with the rising price of raw materials and the enhancement of environmental protection. Therefore, we should enhance [our] independent innovation capability... And increase the contribution of science and technology advancement to [our] economic growth.” In short, for China, innovation is a policy of nearly unrivaled importance.
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