The attitude of a typical consumer (may be outside) China; a Chinese product means something cheap, sub-standard and a “mimic” innovation, which may last up-to a certain level of uses. Unknowing the fact that almost everything (which we consider a product of high quality) is directly or indirectly associated with Chinese markets, in one or other way, includes assembling, manufacturing or labouring.
Slowing economic development and looking for future prospects of healthy growth forcing China to transit itself into an innovation driven economy. It is spending $200 Billion (an increase of up-to four fold in less than a decade) on R&D, a year, which amounts 2% of its GDP and further increase is possible in upcoming years. It is almost at par with the R&D spending of USA and far greater than which India spends on R&D (0.9% of its much smaller GDP).
The China’s quest of innovation is moreover lies on the legal framework, financial functioning and its acknowledgement to the private sector. To establish the credibility of its ‘own’ products outside China will be the biggest challenge, apart from the global ‘technical- co-ordination’ to produce better products.
The issues with India and China on their respective R&D endeavour are alike. The majority of innovations-hubs in both the countries are state driven and politically dominated, which allow the least; freedom, funds & fun of doing innovation. Often the private firms include marketing research and other such initiatives under the umbrella of R&D, in order to exempt tax obligations.
The most effective way to indulge innovation into the thinking process starts from the basic, i.e. inclusion of universities and colleges in R&D initiatives. 4 out of 5 university graduates in India are not unemployable as they do not have right skills. Better R&D facilities at university and college level can be the game-changer for both India and China.
Both the countries do not lack in resources but proper planning and effective implementation of R&D friendly policies are required.
