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Global Innovation Networks – New Roles for Germany and China

On the 24th of September the KAS | Shanghai together with the Sino-German Postgraduate School (CDHK) of Tongji University and Global Bridges | Berlin organised a panel discussion on “Global Innovation Networks – New Roles for Germany and China”.

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The event dealt with the question whether China will be able to become a leading nation in terms of research & development (R&D) in the years ahead. Moreover the potential consequences and challenges for Germany and other industrialised states have been discussed.

Dr. Walther Leisler Kiep, the honorary chairman of the Atlantik Brücke e.V. and honorary member of Global Bridges | Berlin, explained the intensification of the Sino-German relations over the past years. In his opinion the progress in the development of China has already had an impact in the area of innovation.

In the first panel Prof. Dr. Torsten Oltmans from Roland Berger Strategy Consultants pointed out the Chinese advancement in the innovation sector and emphasised the high potential of Chinese companies. Many medium sized private businesses work creatively and innovatively and are able to implement new ideas very quickly. The strong innovative capacity of China is reflected in an R&D export rate that is already higher than the R&D import rate.

Prof. Dr. Max von Zedtwitz from the Research Center for Global R&D Management (GLORAD) compared the current Chinese economic situation with the one of Europe during the 1950s. China strongly increased its quality management (QM) and some Chinese companies have already set international standards, even though there is still a great need for improvement in management and human resource capabilities. Cultural diversity, which characterises innovation centres like Silicon Valley, is lacking in China. Moreover the insufficient protection of intellectual property rights (IPR) hinders innovations.

The second panel discussed the future situation of China. Dr. Christian Ossig from the Royal Bank of Scotland emphasised the strong economic growth potential. China is improving its education system, which is reflected in the students’ performances in the PISA tests. The number of university graduates, especially in natural sciences and engineering will increase in the following years. Also the access to education of the broad population will improve further.

Dr. Ou Minhui from the University of Shanghai for Science and Technology described the high potential in the area of innovation in China. Young Chinese are highly motivated and determined. Nevertheless, the reform of the Chinese education system remains necessary in order to foster creative and independent thinking among Chinese students.

In the following debate solutions for the above mentioned problems were discussed. Moreover the potential Chinese innovation abilities in the coming years were subject of the debate. The rising number of patents registered by Chinese companies makes the protection of intellectual property rights inevitable. More than 98% of disputes between Chinese companies are caused by patent rights violations. Therefore there is hope, that the protection of intellectual property receives more attention and copying of products becomes less common. In the medium term Chinese firms can be especially successful by offering technological standards matching the requirements of other emerging countries at lower costs compared to those in industrialised countries. In the long term China can achieve worldwide leading positions at least in important fields such as nanotechnology.

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Tim Wenniges

Dr. Hefele KAS Shanghai

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