Is China becoming an innovative force? Arthur Kroeber belongs to the bears in this debate, he tells Reuters, as the academic climate in the country is too much constrained. Not only lack of intellectual property protection and a failing educational system holds innovation back.
“There’s a political constraint, too,” said Arthur Kroeber, managing director of GaveKal-Dragonomics in Beijing. “In the long run, innovation arises in societies that are really open, where you can discuss anything. And China doesn’t have that kind of political culture yet.”..
“For most Chinese companies the aim is to provide 80 percent of global best quality but at 50 percent of the cost,” said Kroeber. “If you can make money doing that – and many do – you really have no incentive to invest in high-risk innovation.”