The Source of Innovation in China: Highly Innovative Systems(Palgrave Studies in Chinese Management)

This book discusses the rise of innovation in China and its source for this rapid increasing innovative capability. Focusing on the enterprises' innovation performance, not only technological innovation, but also process and strategy innovation is further debated surrounding the issue. The authors propose a high innovation system for an effective innovation performance in China. After an overview of the competitive advantages of Chinese enterprises based on low cost or on innovation, the book distinguishes different characteristics of Chinese innovation from the angle of organizational innovation type, ambidextrous effects and dynamic perspective of Chinese traditional culture, network-based innovation system, and the organizational innovative human system before discussing the challenges that Chinese enterprises face when they multinationalize overseas. Contrasting popular understanding of Chinese competitive advantages based on low labour, the authors highlight rising power of Chinese high performers in terms of innovation capability. Chinese enterprises' cases are employed for example illustration.

Table of Contents:
1. The Rise of China: Innovation or Cost Leader 2. Chinese Innovation in Product, Process and Strategy 3. Chinese Culture and Value: Enhancing or Impeding Innovation? 4. Network-based Innovation in China: Typology Along with Economic Evolution 5. People-centric Innovation: Strategic HR Management and Innovation 6. Innovation Challenge when Multinationalizing: The Source for Innovation

About the Author :
Ying Ying Zhang is Associate Professor of Management and Organization at CUNEF, Complutense University of Madrid, Spain. Before starting her academic career, Professor Zhang worked extensively in international business between Spain and China including negotiation, consulting and cross-cultural training. Yu Zhou is Associate Professor of Human Resource Strategy at School of Business, Renmin University of China, and a Wertheim research fellow at Labor & Worklife Program in Harvard Law School, Harvard University. Being an expert in innovative HR systems, he has published papers in many international reputed journals and been advising numerous firms to advance their strategic HR practices.

Review :
After a glorious past of innovation second to none, China lost the train of the Industrial Revolution and had to pay dearly with the "century of humiliation". The lesson has been learned. One of the key factors of China's galloping economic development of the last third of a century is the leadership's obsession with science, technology and education. Deng Xiaoping considered technology the main factor of production. Besides, China knows that to escape the "middle income trap" it has to move towards a knowledge economy. Against conventional wisdom, Yingying Zhang and Yu Zhou shows that it is innovation, along with low-cost, that underpins China's economic development. They defines the sources and strategic focus of Chinese innovation, and emphasizes the relevance of cultural factors. The speed of China's catching-up in science and technology will determine the pace of its economic growth, of its penetration of international markets and of its transformation into a true great power. Eugenio Bregolat, Former Ambassador of Spain in China and Author of The Second Revolution in China The thesis of this book is that China's economic success is based on innovation, rather than inexpensive labor. Expectations that China's economic rise will stall due to rising labor costs thus may be misplaced. An incremental innovation dynamic identified by the authors, spread widely through industries at different levels of technology, suggests that China's economy can sustain higher wages but can it take global leadership in innovation? Rather than relying on technology transfer for access to advanced technology, can China produce more fundamental forms of innovation that derive from university-industry government (triple helix) interactions based on an open Civil Society? Henry Etzkowitz, President Triple Helix Association (THA), visiting Professor at London University and Edinburgh University, UK Manufacturing development in China is on the ground of three advantages: low-cost human resources, cheap raw material availability and direct support from the government. However, if we deny the considerable innovative capacity of enterprises in China and if we accept that innovation is the key factor for economic growth in a region/country, it is a real paradox that a country has weak innovation but high value of increasing rate of the GDP. This volume, basic on a broad innovation definition and affirmation of China's innovation capability, tries to explain the source of the innovation capacity as the result of the government having implemented innovation strategy for recent decades. It squares up the humanistic factors such as strategy, culture and social network, highlighting China's specific characteristics in innovation. Chunyan Zhou, Editor for Journal of Knowledge-based Innovation in China (2011-2013)