The China Innovation Survey is jointly conducted by the Benelux Chamber of Commerce in China, 21st Century Business Review, China Europe International Business School, and Booz & Company. Findings:
- China is well on its way to becoming a true global innovation hub for MNCs from developed markets: Two-thirds of the MNCs in China that took part in the survey reported that they are already conducting product development for foreign or global markets.Participants were even more aggressive in their projections, they expect to be conducting global R&D in China for the rest of the world 10 years from now.
- In addition, the survey contradicts a piece of conventional wisdom: that innovation in China tends to focus on copying and making incremental improvements to existing products. In fact, the data shows that Chinese companies—to a higher degree than most global competitors—pursue the same practiced by the world’s most successful innovators, notably companies based in Silicon Valley. These companies pursue Need Seeker strategies : focusing their R&D efforts on consumer needs, developing products that meet those needs, and then quickly getting the products to market.
- Apart from the optimism, the Chinese firms and MNCs in China share the confusion: neither are clear on Key Capabilities.