I beg to differ.

If you look at the iconic products of the last 2000 years, which one came out of China (Other than the Chinese way of Socialism)? All we can brag about were the Four Greatest Discoveries (in ancient China)!

I would not put the blame solely on the government's policies. In fact, China has a modern and complete patent law system which attracts more and more new application each year.

The root cause lies in the business culture which focuses on getting hard cash quick and dirty. To do so, one has to cut corners, has to cheat the customers, has to use cheaper and inferior raw materials, has to bribe the officials in charge, and has to do all the other dirty work one can imagine. The goal is to get to the finishing line first now. Forget about the next race. It's not my problem any more!

During this process, the business owner voluntarily mortgages the potential of future innovations for today's immediate monetary return from current market shares. Granted, innovation has huge risks, which drive away most money-driven business owners, unless they have deep-pockets and high level of tolerance for failures.

To break out of the downard spiral of innovation futility in China, a good and sound policy system is only a start. A more daunting task is to change the business concepts and psychology of today vs. future.

China has enough brilliant minds to do anything she wants. All she needs to do is to change the herd mentality in business from becoming the richest to becoming the most innovative. One of the best ways to succeed in business is to challenge accepted norms or status quo and explore uncharted waters. It's much more exciting and rewarding than fighting for the same exit.

One muggle