As China’s vice president and heir apparent, Xi Jinping, visits Washington, McKinsey & Co. is taking note of a massive surge of innovation throughout Chinese companies and manufacturing plants.
New patents have doubled in China since 2005, and as innovation gains steam there, the stakes are rising for domestic and multinational companies alike, reports McKinsey in the latest issue of its business journal.
In a wide-ranging CEO’s guide to innovation in China, McKinsey supplies a road map for navigating the intensifying competition that lies ahead, noting that innovation prowess will yield ideas and products both internally and on the international stage. Plus, three snapshots of Chinese innovation from McKinsey show how Chinese innovation is evolving in diverse ways across a range of sectors, including cars, pharmaceuticals and semiconductors.
And make no mistake–the competition from China will be fierce, say McKinsey analysts Gordon Orr and Erik Roth.
“The Chinese have traditionally had a bias toward innovation through commercialization–they are more comfortable than many Western companies are with putting a new product or service into the market quickly and improving its performance through subsequent generations,” Orr and Roth write. “It is common for products to launch in a fraction of the time that it would take in more developed markets.”
(Video: Xi Jinping’s wife, noted Chinese folk singer Peng Liyuan, sings “Ode to Coral.”)