{"id":2771,"date":"2011-01-03T04:27:05","date_gmt":"2011-01-03T11:27:05","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=2771"},"modified":"2018-08-16T17:43:15","modified_gmt":"2018-08-16T21:43:15","slug":"innovation-plans-chinese-style","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2011\/01\/03\/innovation-plans-chinese-style\/","title":{"rendered":"Innovation plans, Chinese style"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">A recurring theme of the blog has been what qualifies as real economic growth (see for example: <a href=\"https:\/\/jasonapollovoss.com\/web2008\/10\/08\/the-solid-foundation-underneath\/\" target=\"_blank\" rel=\"noopener\">8 October, 2008<\/a>,\u00a0<a href=\"https:\/\/jasonapollovoss.com\/web2009\/01\/17\/what-is-real-economic-growth\/\" target=\"_blank\" rel=\"noopener\">17 January, 2009<\/a>\u00a0and <a href=\"https:\/\/jasonapollovoss.com\/web2010\/11\/20\/why-has-the-united-states-had-so-much-innovation\/\" target=\"_blank\" rel=\"noopener\">why has the united states had so much innovation?<\/a>).\u00a0 I have long argued that real innovation is getting more from the same set of resource inputs or getting the same from a smaller set of resource inputs.\u00a0 Innovation is ultimately what drives the health and wealth of an economy.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">This weekend the New York Times is running a <a href=\"http:\/\/www.nytimes.com\/2011\/01\/02\/business\/02unboxed.html?_r=1&amp;ref=business\" target=\"_blank\" rel=\"noopener\">story<\/a> about Chinese plans for innovation over the next decade as announced in November.\u00a0 The formal document is entitled, &#8220;National Patent Development Strategy (2011-2020).\u00a0 \u00a0The plans include:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">By 2015 &#8211; To have 2 million total\u00a0patent applications annually, both utility and invention patent types.\u00a0 Utility patents are for things like engineering features in a product, whereas invention patents are purely new products and ideas.\u00a0 This compares to 480,000 total patents filed in the United States September &#8217;09 to September &#8217;10.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">By 2015 &#8211; To have 1 million invention patents.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">By 2015 &#8211; To double its number of patent examiners to 9,000.\u00a0 For comparison, the United States currently employs ~6,300 examiners.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">By 2015 &#8211; To double the number of patents that its citizens and companies file in other countries.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">To make this all happen the Chinese government is planning on providing a\u00a0portfolio of incentives, including:<\/span>\n<ul>\n<li><span style=\"font-size: 16px;\">tax breaks for highly innovative companies that file a lot of patent applications<\/span><\/li>\n<li><span style=\"font-size: 16px;\">better housing options for individual patent filers<\/span><\/li>\n<li><span style=\"font-size: 16px;\">cash paid out as a bonus to filers<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size: 16px;\"><strong>Analysis:<\/strong> The Chinese document has certainly captured the attention of the U.S. Patent Office, governmental organizations, politicians and think tanks.\u00a0 Even if the Chinese meet their very ambitious goals there is more that drives the <em>real<\/em> economic growth of a nation than just its patents.\u00a0 As I outlined in my post, &#8220;why the united states has had so much innovation,&#8221; there are many components driving <em>real<\/em> economic growth.\u00a0 You see, good ideas are not important unless actually implemented and made into a business.\u00a0 So the Chinese have more to do than just issue a load of patents.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">One of which is\u00a0a culture of innovation that must be put into place, but\u00a0is going to be very difficult for the Chinese to replicate given its authoritarian, centralized, iron-grip Communist government.\u00a0 Another important thing that helps innovation and long-term economic growth are well-functioning capital markets.\u00a0 Without question the Chinese capital markets have a long way to go in order to compete with western world capital markets, such as the New York Stock Exchange,\u00a0the London Stock Exchange\u00a0or NASDAQ.\u00a0 Additionally, capital markets depend on transparency and the Chinese are notorious obfuscators of key economic data.\u00a0 Lastly, I want to point out that an absence of needless bureaucracy is a big assist for taking great ideas to the marketplace.\u00a0 Without question the Chinese have one of the most obtuse bureaucratic systems in the world.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">So while I hope the U.S. Executive and Legislative branches of government take seriously the Chinese innovation manifesto, I am not afraid that the U.S. is about to stop innovating.\u00a0 Nor am I afraid that the United States is about to not be competitive on a global scale as regards innovation.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Importance grade:<\/strong> 6; I applaud the ambitions of the Chinese.\u00a0 However, China has more to do to compete globally than just issue a large number of patents.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recurring theme of the blog has been what qualifies as real economic growth (see for example: 8 October, 2008,\u00a017 January, 2009\u00a0and why has the united states had so much innovation?).\u00a0 I have long argued that real innovation is getting more from the same set of resource inputs or getting the same from a smaller [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2771","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=2771"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2771\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=2771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=2771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=2771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}