At the end of last month Booz & Company presented their 2013 China Innovation Survey.
According to Booz & Co China is slowly but surely “regaining its historical position as a global innovation power“. The consulting firm states that: “The China Innovation Survey shows that innovators in mainland China are gaining rapidly in competitiveness compared with companies in Europe, United States, and other regions.”
This white paper lists the Top 10 most innovative local companies as well as a Top 10 of the most innovative Non-Chinese Companies in China. Also an overview is given of China’s Innovation Leaders. This year Ma Yun (or Jack Ma), founder of Alibaba Group, was named the Most Popular Innovation Leader of the Year.
Key findings of this survey are:
- Some 64 percent of the respondents at non- Chinese companies said some Chinese competitors are equal to or better than their own companies at innovation—a strong increase from 48 percent in the 2012 survey.
- More than two-thirds of respondents this year said they are now conducting product development for the rest of the world in China, up sharply from 41 percent in 2012. Even more expect to be doing so in the future: 88 percent of Chinese companies said they will be doing global R&D in China by 2023.
- In 2013, fully 44 percent of the Chinese companies we surveyed see themselves as conducting activities that make up the Need Seeker strategy, compared to the Global Innovation 1000 average of 27 percent.
- China is on its way to becoming a true global innovation hub for MNCs from developed markets. 66% of respondents conduct R&D in China for foreign markets –an increase from 51% last year.
- The survey results show that Chinese companies are still focusing on core innovation capabilities such as platform management and production ramp-up, and are also moving away from reverse engineering as the sole source of innovation. The MNCs in China are more formal and processdriven, and focus on capabilities related to government relationship management and understanding the market potential.