DesiGuy
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AS a national strategy, China is trying to build an economy that relies on innovation rather than imitation. Clearly, its leaders recognize that being the worlds low-cost workshop for assembling the breakthrough products designed elsewhere think iPads and a host of other high-tech goods has its limits.
So can China become a prodigious inventor? The answer, in truth, will play out over decades and go a long way toward determining not only Chinas future, but also the shape of the global economy.
Clues to the Chinese approach emerge from a recent government document containing goals for drastically increasing the nations production of patents. It offers a telling glimpse of how China intends to engineer a more innovative society.
The document, published in November by the State Intellectual Property Office of China, is called the National Patent Development Strategy (2011-2020). It discusses broad economic objectives as well as specific targets to be attained by 2015.
In a recent interview, David J. Kappos, director of the United States Patent and Trademark Office, pointed to the Chinese targets for 2015 and called them mind-blowing numbers.
According to a translation of the document provided by the patent office, Chinas goal for annual patent filings by 2015 is two million. That number includes utility-model patents, which typically cover items like engineering features in a product and are less ambitious than invention patents. In the American system, there are no utility patents.
In 2009, about 300,000 applications for utility patents were filed in China, roughly equal to its total of invention patents, which have been growing slightly faster than utility filings in recent years. But even if just half of Chinas total filings in 2015 are for invention patents, the national plan calls for a huge leap, to one million, by 2015. By contrast, patent filings in the United States totaled slightly more than 480,000 in the 12 months ended in September, according to the patent office.
Chinas patent surge has been evident for years. In October, Thomson Reuters issued a research report, forecasting that China would surpass the United States in patent filings in 2011. Its happening even faster than we expected, said Bob Stembridge, an intellectual-property analyst at Thomson Reuters.
Yet if the trend is not surprising, the ambition of the Chinese plan is striking. The document indicates, for example, that China intends to roughly double its number of patent examiners, to 9,000, by 2015. (The United States has 6,300 examiners.)
China also wants to double the number of patents that its residents and companies file in other countries. Recent Chinese filings in the United States, Mr. Kappos says, are mainly in fields that China has declared priorities for industrial strategy, including solar and wind energy, information technology and telecommunications, and battery and manufacturing technologies for automobiles.
To lift its patent count, China has introduced an array of incentives. They include cash bonuses, better housing for individual filers and tax breaks for companies that are prolific patent producers.
The leadership in China knows that innovation is its future, the key to higher living standards and long-term growth, Mr. Kappos says. They are doing everything they can to drive innovation, and Chinas patent strategy is part of that broader plan.
Chinas strategy is guided and sponsored by the state. Should that be a source of concern for the United States, and perhaps a trade issue? Or is the plan likely to resemble past efforts by other governments to give their companies an edge in global competition?
In the 1980s, the Japanese government was widely viewed as the master practitioner of industrial policy, and Japan Inc. seemed poised to overrun one American industry after another, including computers.
As we know, it didnt turn out that way, partly because of steps taken by the American government and industry. A semiconductor trade agreement was intended to pry open the Japanese market, and I.B.M. invested in a crucial but then-struggling supplier, Intel.
More important, however, Japan never became a force in a particularly unruly, imaginative side of computing: writing software. Generalizations are risky, but it seems that Japan, as a society, has not produced enough of that kind of innovative skill, despite being a formidable patent generator. (In that area, Japan is still slightly ahead of the United States by some measures, though Japans patent filing pace is slowing.)
To call Japans industrial policy an outright failure would be simplistic. In some industries autos, machine tools and consumer electronics, for example it has done quite well.
They are still in the game in those industries and going gangbusters and we are not, said Clyde V. Prestowitz Jr., president of the Economic Strategy Institute and a former United States trade negotiator. Still, just how strong a hand government policy had in those successes is open to debate.
The Chinese patent strategy document is filled with metrics, right down to goals for patents owned per million people. It speaks of an innovation-by-the-numbers mentality, much like a student who equates knowledge with scores on standardized tests.
It is a brute-force approach at this stage, emphasizing the quantity of innovation assets more than the quality, said John Kao, an innovation consultant to governments and corporations.
But it would be a mistake, Mr. Kao said, to assume that China will necessarily follow a path similar to Japans. China, he says, is not only much bigger than Japan, but it also has a more individualistic entrepreneurial society, despite its Communist government. Someday, he predicts, China will have its entrepreneurial equivalents of Steven P. Jobs and Mark Zuckerberg.
DESPITE Chinas inevitable rise, Mr. Kao said, the United States has a comparative advantage because it is the country most open to innovation. American culture, more than any other, forgives failure, tolerates risk and embraces uncertainty, Mr. Kao says.
Many innovative products and technologies, he says, will be made elsewhere. But Americas future lies in being the orchestrator the systems integrator of the innovation process, Mr. Kao said. Look at Silicon Valley. It is a place where smart people from all nations, all languages and all ethnic groups come together. Its the capital of innovation assembly.
http://www.nytimes.com/2011/01/02/business/02unboxed.html?_r=1&ref=asia
So can China become a prodigious inventor? The answer, in truth, will play out over decades and go a long way toward determining not only Chinas future, but also the shape of the global economy.
Clues to the Chinese approach emerge from a recent government document containing goals for drastically increasing the nations production of patents. It offers a telling glimpse of how China intends to engineer a more innovative society.
The document, published in November by the State Intellectual Property Office of China, is called the National Patent Development Strategy (2011-2020). It discusses broad economic objectives as well as specific targets to be attained by 2015.
In a recent interview, David J. Kappos, director of the United States Patent and Trademark Office, pointed to the Chinese targets for 2015 and called them mind-blowing numbers.
According to a translation of the document provided by the patent office, Chinas goal for annual patent filings by 2015 is two million. That number includes utility-model patents, which typically cover items like engineering features in a product and are less ambitious than invention patents. In the American system, there are no utility patents.
In 2009, about 300,000 applications for utility patents were filed in China, roughly equal to its total of invention patents, which have been growing slightly faster than utility filings in recent years. But even if just half of Chinas total filings in 2015 are for invention patents, the national plan calls for a huge leap, to one million, by 2015. By contrast, patent filings in the United States totaled slightly more than 480,000 in the 12 months ended in September, according to the patent office.
Chinas patent surge has been evident for years. In October, Thomson Reuters issued a research report, forecasting that China would surpass the United States in patent filings in 2011. Its happening even faster than we expected, said Bob Stembridge, an intellectual-property analyst at Thomson Reuters.
Yet if the trend is not surprising, the ambition of the Chinese plan is striking. The document indicates, for example, that China intends to roughly double its number of patent examiners, to 9,000, by 2015. (The United States has 6,300 examiners.)
China also wants to double the number of patents that its residents and companies file in other countries. Recent Chinese filings in the United States, Mr. Kappos says, are mainly in fields that China has declared priorities for industrial strategy, including solar and wind energy, information technology and telecommunications, and battery and manufacturing technologies for automobiles.
To lift its patent count, China has introduced an array of incentives. They include cash bonuses, better housing for individual filers and tax breaks for companies that are prolific patent producers.
The leadership in China knows that innovation is its future, the key to higher living standards and long-term growth, Mr. Kappos says. They are doing everything they can to drive innovation, and Chinas patent strategy is part of that broader plan.
Chinas strategy is guided and sponsored by the state. Should that be a source of concern for the United States, and perhaps a trade issue? Or is the plan likely to resemble past efforts by other governments to give their companies an edge in global competition?
In the 1980s, the Japanese government was widely viewed as the master practitioner of industrial policy, and Japan Inc. seemed poised to overrun one American industry after another, including computers.
As we know, it didnt turn out that way, partly because of steps taken by the American government and industry. A semiconductor trade agreement was intended to pry open the Japanese market, and I.B.M. invested in a crucial but then-struggling supplier, Intel.
More important, however, Japan never became a force in a particularly unruly, imaginative side of computing: writing software. Generalizations are risky, but it seems that Japan, as a society, has not produced enough of that kind of innovative skill, despite being a formidable patent generator. (In that area, Japan is still slightly ahead of the United States by some measures, though Japans patent filing pace is slowing.)
To call Japans industrial policy an outright failure would be simplistic. In some industries autos, machine tools and consumer electronics, for example it has done quite well.
They are still in the game in those industries and going gangbusters and we are not, said Clyde V. Prestowitz Jr., president of the Economic Strategy Institute and a former United States trade negotiator. Still, just how strong a hand government policy had in those successes is open to debate.
The Chinese patent strategy document is filled with metrics, right down to goals for patents owned per million people. It speaks of an innovation-by-the-numbers mentality, much like a student who equates knowledge with scores on standardized tests.
It is a brute-force approach at this stage, emphasizing the quantity of innovation assets more than the quality, said John Kao, an innovation consultant to governments and corporations.
But it would be a mistake, Mr. Kao said, to assume that China will necessarily follow a path similar to Japans. China, he says, is not only much bigger than Japan, but it also has a more individualistic entrepreneurial society, despite its Communist government. Someday, he predicts, China will have its entrepreneurial equivalents of Steven P. Jobs and Mark Zuckerberg.
DESPITE Chinas inevitable rise, Mr. Kao said, the United States has a comparative advantage because it is the country most open to innovation. American culture, more than any other, forgives failure, tolerates risk and embraces uncertainty, Mr. Kao says.
Many innovative products and technologies, he says, will be made elsewhere. But Americas future lies in being the orchestrator the systems integrator of the innovation process, Mr. Kao said. Look at Silicon Valley. It is a place where smart people from all nations, all languages and all ethnic groups come together. Its the capital of innovation assembly.
http://www.nytimes.com/2011/01/02/business/02unboxed.html?_r=1&ref=asia
like caste system),
, these become extreme important factors, IMHO.
