Por Hire de Christopher

ANÁLISE, negócio - a história de China é high-risk, elevado-retorna a história do negócio.

Longer-term pode ser grande, mas como usual, os riscos estão sendo suavizados. É aqui por que…

7 razões porque a história de China na inovação é risky:

7. China é uma nação grande dos nação-estados, bem como o EU. Não há nação de nenhuma China do `', algo faltada em Westerners.

6. A proteção legal pode melhorar, mas a observação e o enforcement das leis variam a província pela província

5. Diferenças Cultural under-estimated, as well as nenhuma língua de China do `'

4. Falta de freedoms cultural no mainland China. Communism!

3. Pobreza moendo em muita de China

2. Proteção da propriedade intelectual não observada na legislação

1. Proteção da propriedade intelectual não observada na prática.

O negócio sucede melhor em ambientes regulatory consistentes, e naqueles lugares com mercados domésticos ricos. As idéias comunistas são duras de matar, especialmente no país.

Nenhum país comunista sucedeu na inovação broad-based.

Modelo do laço da inovação do Hire

A inovação é mudança positiva.

É componentes pode ser explicado como a inspiração, a execução e o acesso do mercado.

Inspiração em China é pobreza baixa, moer principalmente, poluição maciça e muito roubo do IP. Longer-term isto pode mudar, se os chineses o reconhecerem forem importância, e para eradicate também políticas comunistas anti-intelectuais.

A inspiração vem dos intelectuais que são educados e reservados para explorar.

O Communism mata intelectuais. Batente cheio. Fale aos intelectuais em países ex-Comunistas, e a testemunha Europa Oriental embrace de outros sistemas.

China necessita fazê-lo que os intelectuais desobstruídos são bem-vindos, e reduzir red-tape para ele é empreendedores.

Execução: Western countries are using China as a factory, and in return China is gaining a knowledge transfer of IP.

I would argue there are some strategic risk of outsourcing food production or strategic goods to China, as is being discovered in the USA at current. Regulation won’t cut it in China. Electronics, plastics and other industries quality ratios are improving.

Market Access: Long-term strong domestic markets derives from innovation. Anyone predicting the decline of USA, Germany, Great Britain or France as large markets is really subject to hyperbole.

Japan had a remarkable success focused solely on technological innovation, but is having trouble adapting to an emerging knowledge-creation economy. It has good chances.

The size of the China market is significant but lack of IP protection means that too much success will be widely copied.

China will most likely overcome these obstacles. But it will be a bumpy ride, and is higher risk than other innovation opportunities. High-risk, high-return people only need apply, with capital and stomach for risk. I don’t think it has been sold to shareholders that way, as executives try to find the China solution.

China Innovators

If I was looking at China, I’d start in Shanghai, and find local business partners for a long-term business relationship. This is pretty much the gist of all advice I have read on the topic from the success stories.

And I would examine China as a regional story, not a ’single nation’. This is how many Chinese think.

But in innovation terms, the risk is higher than alternate opportunities with good innovation opportunities, and stronger climates of inspiration.

The risk is far lower in the similarly homogeneous Eastern Europe, especially pro-business Czechs & Poles. The risk is lower still in a United States/Canada market, although costs are higher, business in a US domestic market from East or West coast hubs is difficult to compete with.

Australia & China Innovation

I would like to point out I am in Australia as I write this, and would state for the record, that Australia is best-placed to work with a successful China as a cultural bridge nation.

It is the Chinese system that is the issue, as we have had a huge number of successful Chinese-born nationals succeeding entrepreneurially regionally in Australia and Hong Kong, both with degrees of freedom.

As a broader nation China needs to protect IP, and show respect for intellectuals. In the long-run I believe they will. In the short-run, my money is on other opportunities inside the US & EU markets.

And for those doing business in China, understand your regions and don’t let cultural assumptions let you assume one billion plus consumers…

Take Care,

Christopher-where’s-my-suitcase?

Christopher Hire
Innovator-In-Chief
2thinknowTM : Global Innovation Agency