McKinsey & Company regularly publishes reports about doing business in China. Click here to visit its McKinsey China Web site.
McKinsey firm has just produced a new report on Chinese innovativeness:
“New research by the McKinsey Global Institute (MGI) suggests that to realize consensus growth forecasts—5.5 to 6.5 percent a year—during the coming decade, China must generate two to three percentage points of annual GDP growth through innovation, broadly defined. If it does, innovation could contribute much of the $3 trillion to $5 trillion a year to GDP by 2025. China will have evolved from an ‘innovation sponge,’ absorbing and adapting existing technology and knowledge from around the world, into a global innovation leader.”
“Our analysis suggests that this transformation is possible, though far from inevitable. To date, when we have evaluated how well Chinese companies commercialize new ideas and use them to raise market share and profits and to compete around the world, the picture has been decidedly mixed. China has become a strong innovator in areas such as consumer electronics and construction equipment. Yet in others—creating new drugs or designing automobile engines, for example—the country still isn’t globally competitive. That’s true even though every year it spends more than $200 billion on research (second only to the United States), turns out close to 30,000 Ph.Ds in science and engineering, and leads the world in patent applications (more than 820,000 in 2013).”
“When we look ahead, though, we see broad swaths of opportunity. Our analysis suggests that by 2025, such new innovation opportunities could contribute $1.0 trillion to $2.2 trillion a year to the Chinese economy—or equivalent to up to 24 percent of total GDP growth.”
Click the image to access the full report.
China had been called “World Factory”, I am so glad that there is some evidences can proved that China is changing. However, the developement of China is extremely imbalance. I think China should pay more attention on their weakness, otherwise, the whole economic structure will like a cripple. I hope that maybe ten years later, China will be known as World of Innovation.
Chinese companies benefited from its economy scale of mass production, large inner market and exports, but they realized that is ging to a dead end. Innovation companies like Kr36 and InnovationFactory are leading the transformation by supporting start-up companies with capital and most importantly, strategies, to compete with traditional giants in China and worldwide.
As a Chinese, compared with to create absolutely new ones, Chinese are more good at developing some existing new ones to be more mature and successful. Maybe many people think that it doesn’t deserve to pay attention to, but i think it is the most important reason why the new innovation opportunities could contribute so much a year to the Chinese economy. Making these innovation opportunities become more tangible products and intangible service which can be easily used by common people. So you will never suspect that 1.3 billion people can contribute how much to their own economy.
I can remember as far as back as junior high school when teachers called China the “sleeping giant” in regards to the country’s unwillingness or inability to expand, whether through innovations or economically. It’s interesting to see as its becoming more evident that this sleeping giant has awakened or at the very least is beginning to wake and make such strides in development. I think it’ll be very interesting to see China’s development over the course of the next 10 years and look at this potential growth in comparison to that of the United States. The growth and innovation in China can perhaps be a catalyst for greater innovations and growth, in terms of economics, medicine, etc., within the United States.
In my opinion China will definitely become the leader in innovation across all market segments within the next few years. China is consistently creating new products that is attracting many different countries to import like crazy from China. Although China hasn’t been known for the innovation within science and medicine, they are growing so fast that it’s bound to become a major contributor to their developments soon. As the education level and economy increases in China, I believe that they will begin to be seen as the innovators of the world.
China is always improving and it went to a relatively not important country to a country with the second biggest economy. In the next years, I believe China will keep on improving and their innovation will be better. This could be good and bad for the world thought because China always has this idea that they want to be globally dominate and if they are more innovative, their economy could grow and that dream could happen in the future. Also this is a good thing because since China has such a big economy, when China does well, the world does well.
China is quickly growing and innovating the economy as time continues. They were known as a place to manufacture products for a low price for companys and nowtheir annual growth of gdp compared to the US and other countries is evidence that they could takeover the economy. The economy isnt in the best place right now and this could help trenmendously
China is trying to change from made in China to created in China, gpa growth may slow in the coming years, but the pace of scientific innovation must not slowing down