Will an Innovation Shortage End China's Economic Growth?

Filed in archive Innovation on October 25, 2009

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BusinessWeek ran a couple of articles this week (here and here) on China's economic growth and the expansion of the China economy into "sophisticated industries." Can the growth rate of 8% continue? There are skeptics.

China has moved into auto and airplane manufacturing, solar power, and silicon chips (to name of few of the so called sophisticated industries). But much of the 8% growth rate is driven by infrastructure projects designed to stimulate the economy. Many analysts doubt that China can maintain the growth rate when those project end.

But a more profound concern is whether China's industries can foster innovation.

Experts familiar with highly touted Chinese achievements such as commercial jets and high-speed trains say the technologies that underpin them were largely developed elsewhere. There is no Chinese Sony, Toyota, or Samsung on the horizon.

Time will tell...