Week 3 DQ 2: Does Serendipity Apply
With over 1.3 billion people in China, why are they known for cheap manufacturing instead innovation?
Conversely, northern California's Silicon Valley has a relatively small popu
...
Week 3 DQ 2: Does Serendipity Apply
With over 1.3 billion people in China, why are they known for cheap manufacturing instead innovation?
Conversely, northern California's Silicon Valley has a relatively small population but is responsible for many new ideas & companies - think Facebook, Intel, yahoo, & thousands of smaller companies. Why?
And why isn't Texas (much larger in size & close to the population of California) known as a leader for technology advancement?
With such a large population & given that china was very closed off to the rest of the world, the people of china needed to sustain themselves in poor conditions, the people became very efficient in manual labor. For western nations like the US it became increasingly profitable to pay such low wages to produce their products, even though the wages paid were fair by their standards, as a result China became comfortable with that type of business. That method flourished for some time but now China is quickly becoming a force to be reckoned with in the field of innovation.
"China is innovating. Some of its achievements are visible: a doubling of the global percentage of patents granted to Chinese inventors since 2005, for example, & the growing role of Chinese companies in the wind- & solar-power industries. Other developments—such as advances by local companies in domestically oriented consumer electronics, instant messaging, & online gaming—may well be escaping the notice of executives who aren’t on the ground in China."
http://www.mckinsey.com/insights/asia-pacific/a_ceos_guide_to_innovation_in_china
[Show More]
