Let's Research, Let's Innovate!

Above: New Capital Museum in Beijing. I found it distantly reminding about Pompidou Center in Paris, but yet, worth of visiting. Photo gallery below.

ABOUT CATS AND LEGS
A foggy day in Beijing. Chinese research manager thinks you haven't been working hard enough, no progress made. Not happy, manager says: 3-legged cat is rare, but 2-legged humans there are many. Very Chinese! Innovators in China, as rare as 3-legged cats!


Let's Research, Let's Innovate!
LONG WAY FROM IMITATION TO INNOVATION

This week a major sci-tech conference was held in Beijing. President Hu announced that China will take new path of innovation with Chinese characteristics:

Innovation is the core of the nation's competitiveness
and the strategic motive of China's future science and
technological development.

TECHNOLOGY GAP
Now everybody in China talks about innovation. A professor from Tsinghua University explained that China lacks innovative culture, because in 1948 it already was behind the rest of the world. Technological gap was realized only in the late 70's when China begun to open. Professor also adviced:
When you need something, look-outside type of mentality needs to be changed.

It’s impossible to build innovation oriented China overnight. Official goal for innovation based economy is included in 11th 5-year plan, starting 2006. Time to reach the target is set to 15 years. During sci-tech conference Premier Wen Jiabao introduced 4 building blocks for China:

1. Reform sci-tech mechanism
2. Work out incentive measures
3. More investment in sci-tech
4. Cultivate young talents

Picture:
Capital Museum, Beijing.
Chamber Pot

To convert China innovation-oriented, words will not be enough. It will require major developments at society and companies.


IMITATE OR INVENT
For Chinese companies, technology import is costly. Without best technology it is difficult for them to stay competitive. They use only 0,06% of their sales to R&D compared to 5% in developed countries. Thinking long term is not Chinese strong point, but focus on innovation has made some Chinese hi-tech companies to put 10% on R&D.

Chinese crown jewel HuaWei (networks and IT-solutions) has already established research to lead China towards innovations. Others will follow since government will provide incentives to companies who invest on R&D.

BARRIERS
To protect it's markets, China has used standards as barriers for competition. That way China has gained experience about managing research projects, IPR creation. Chinese now understand more about IPRs. Some examples:

- Non-standard requirements for prepaid services
- Chinese WAPI encryption for WLAN, June 2004; delayed
- Chinese AVS 1.0 audio, AVS-M = AVS 2.0 for video
- 3G networks TD-SCDMA vs. WCDMA
- DVB-H vs. Dtvfone by Tsinghua University, mobile TV
- DVB-C vs. Chinese standard for digital video broadcasting
- MMTA, Chinese Mobile Multimedia Technology Alliance

Above: The Microphone. This was used by Mao Zedong when he announced establishment of P.R. China at TianAnMen, 1st Oct. 1949. Now at Capital Museum in Beijing.


Doing Research Projects in China
ABOUT MNCs, RESOURCES, PROJECTS, INVENTIONS

End 2005 multinational corporations had over 750 R&D centers in China. Recently Beijing has seen tens of announcements for more to come:
"Our new China R&D will be established in Beijing. By the end of next year we will employ 100 Chinese researchers".

China Patent Office informs that during 2005 130.000 patent applications were filed, half of them by foreign MNCs.

One driver is China's domestic market, it has become a growing temptation. Chinese culture might serve as a source for inventions which not only fit for China but to global market. Multinational corporations want the same as President Hu, innovation with Chinese characteristics.

RESOURCES
For R&D projects MNCs' often recruit high-score candidates, who have proven hard working attitude with their studies. China education system is Confucian, it encourages to copy and imitate, avoid mistakes, be perfect, not critical. China is not about "discontinuity", China is about "little steps forward".

Teachers are respected, never challenged. Every September when Teachers Day comes, students compete with gifts.

That mentality is difficult to change. But with market economy, values are changing and young Chinese feel not secure in the situation. The risk is, that real innovations get influenced and replaced by web-findings from neighboring Japanese and Korean markets.

Picture:
Capital Museum, Beijing.
Genuine figures.

Most high-score candidates that I have met, came from China's countryside. Their key motive behind hard working was to find a job and settle down in big cities. That is their way to get away from poor rural areas. Your recruitment decision might become a "mission accomplished" for such a person.

Probably your Chinese candidates go through HR tests. Verify what kind of selection criteria HR is using in their tests. Localized HR often favors humble and easy-to-manage employees for their own sake, while research projects would benefit of independent thinking and courageous individuals.

PROJECTS
Chinese researchers prefer to be resources in international projects. Their task would be part of a bigger picture, and that is considered easier. International projects offer opportunities to travel abroad and contribute more into future career, a line in CV.

Who wants to take projects with Chinese characteristics, those what President Hu mentioned? Such projects are more challenging, since they go into the unknown within the Chinese culture. Foreigners can't help much in that. Findings and innovations might combine the existing from abroad and the new from China. Or they might be totally new concepts sprouting up from China. Any Chinese researcher who takes role and responsibility in such a project, shows a lot of courage.

Project Manager is the key person for success, very important selection. He should have good communication skills and courage to estimate risks during the project. He should be kind of "village head".

In China, Project Plan should be very clear and detailed in defining the tasks, challenges, goal, milestones, communication and responsibilities.

Pay extra attention on clear and understandable memos during the project. Follow the action points register and compare progress made versus milestones. Verify improvements.

In China fluent communication between project members is essential but often problematic. Make sure that everyone who joins the project, does it willingly and is accepted by other project members, and of course by project manager.

Picture:
Capital Museum, Beijing.
This one is just unique.

Too often Project Kick-Off is the only time to celebrate the project.

Chinese say Hu Tou She Wei, meaning, starting with tiger's head, ending with snake's tail. Tiger's big head is a big celebration at the beginning, Project Kick-Off, only opportunity to celebrate. Then it vanishes as a snake's tail. Chinese imagination - do you recognize!

Managing Chinese projects is kind of art and project managers kind of artists. If project becomes success, make sure the real contributors become recognized.

INVENTIONS
For exceptional thoughts to become innovations and new applications, China needs IPR protection, and it's not yet in place.

To boost innovative thinking, extra rewards and competitions can help in China. Through them you can catch attention of possibly non-confident researchers. As a result you will receive a lot of invention reports but quality is still another issue.

Guanxi is not limited to sales activities. It can be a strong activity within the organization. It plays important role in f.ex. promotions. If an invention is made, Guanxi, relations, might begin.

Co-inventors might be selected and invitation becomes sort of currency for favor exchange, tools to build Guanxi. Guanxi is the essential part of Chinese culture, it penetrates everywhere, even into innovations.

EPILOG
To change China into innovation oriented country is a must but how to change look-outside mentality? China still lacks confidence on doing world-class research. Innovations with Chinese characteristics is possible with contribution of "3-legged cats", but how to find such?

Large setups by MNCs might not be optimal. I believe that with ideas, technologies and finance, Chinese SMEs might become the key source for future innovations.


BeijingMan aka Kippo

List of all BeijingMan Postings

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Above-1: Capital Museum in Beijing. New space with style. Entrance fee 20RMB (2EUR or 2,4USD).

Above-2: Capital Museum in Beijing. New space with history.

Above-3: Capital Museum in Beijing. Where is the innovative spirit?

Above-4: Capital Museum in Beijing. Letting innovative spirit loose at exciting Capital Museum.

Above-5: Capital Museum in Beijing. The Microphone, used by Mao Zedong when he announced establishment of P.R. China at TianAnMen, 1st Oct. 1949.

Above-6: Capital Museum in Beijing. View out.

Above-7: Capital Museum in Beijing. Curious visitor.

Above-8: Capital Museum in Beijing.

Above-9: Capital Museum in Beijing.

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This is BeijingMan researching his favorite bronze, "Three-Way Piece No.3" by Henry Moore (1898-1986). This is a complex thought, inspires me more than seminars or symposiums. Do you dare to challenge your thinking? To succeed with business in China, you have to. Picture at Smithsonian, Wash. D.C.


New Capital Museum in Beijing
+ New building is interesting space
+ Wide range of history by one go: see pic No.5 Microphone
+ Easy to find, main avenue west from TianAnMen Square
- My association, Pompidou Center in Paris
**** RECOMMENDED TO VISIT ****

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© BeijingMan aka Kippo 2008, 2009, 2010