Strategic management of technology and innovation capabilities in China

Strategic management of technology and innovation capabilities in China

Article Type: Editorial From: Journal of Knowledge-based Innovation in China, Volume 2, Issue 2

CAMOT 2010 Annual Conference in Shanghai

At the heart of globalization-achieving national and corporate strategic competitive advantage lies the critical role of technology as the great equalizer among companies and countries. This underscores the important role of technological innovation as the core catalyst and determinant of prosperity, corporate growth, and global economic welfare. From the credit crunch to the collapse of the banking giants in Wall Street in October, 2008, the economic downturn started from America struck the whole world. However, China demonstrates its outstanding position in the current economic recession because of its market economy with Chinese characteristics. China’s ambition of becoming “an innovation-oriented country” by 2020 and a “world’s leading science power” by 2050 has drawn world attention. Researching into 1,244 firms based in Beijing, Guan et al. (2009) evaluates the relevance of innovation strategy to various categories of Chinese firms and investigates its relationship with innovation performance during the economic transition of the 1990s. The results indicate that innovation activities in Chinese firms has been improved and started moving away firm reliance on imported technology and equipment towards increasingly using indigenous research and development (R&D) efforts to innovate for the coming marketing economy. Developing innovation capacities through building an enterprise-centred innovation system has increasingly been seen as an important part of the national innovation policies (Warwick, 2007).

The increase prominence of China in technology and innovation at the global context has created a new paradigm of knowledge distribution between the east and west. The once technology follower and world manufacturer has now been regarded as the “knowledge hub” (Jakobson, 2007; Lu et al., 2008). Such transformation embodies the evolutionary process as a result of sophisticated interactions between economical, political as well as historical context, which requires a deeper understanding not only national and regional level but also enterprise level.

This issue of Journal of Knowledge-based Innovation in China (JKIC) continues to contribute to the ongoing debate on developing innovation capacities within Chinese firms drawing upon a range of themes from the impact of knowledge base on innovation performance, developing human resource (HR) for multinational technology firms, and knowledge management (KM) issues within different part of China.

The first paper in this issue presents latest research on the technological innovation progress in central part of China based on a survey of 42 none-state owned firms. Although it is encouraging to identify the positive effect of government innovation policy on firms’ innovation performance, Liqin Ren, Deming Zeng, and Koos Krabbendam in their paper highlights the issue of lack of quality HR for developing innovation capacities and firms’ innovation performance.

The second paper contributed by Panqiang Niu, Fuji Xie, and Tchuta Leonard analyzed the impact of knowledge base on innovation performance within the regional context with reference to the triple helix model of knowledge-based innovation system. Their paper focuses on two types of innovation performance: patent and technology output. It is identified that knowledge base is more relevant to patent production whereas the size of enterprise (organization) as well as the technology level and organizational types within the region have an effect on the innovation performance.

Effective HR development in science and technology (S&T) has been recognized as a major barrier for enhancing innovation performance in China (OECD, 2008). In addition to the evidence presented by Liqin Ren, Deming Zeng, and Koos Krabbendam in this issue about lack of HR contribution to firms’ innovation performance, Serena Rovai conducted a comprehensive review on the development HR for foreign high-tech multinational companies (MNCs) in China. It is pointed out that high-tech MNCs demand a specific tool of talent individuals with specific technical expertise and personal skills to be adapted to operate in an international arena. Key issues and challenges on transforming higher education in China are discussed and evaluated. The paper concludes by providing a number of policy recommendations on improving the effectiveness of current education system which can become a high-quality talent pool for foreign high-tech MNCs.

Extended from Serena Rovai’s work on the role of Chinese higher education in generating high-quality managers, Lee Zhuang’s research focus more on the international educators’ experiences in China in terms of providing academic teaching and professional training for prospective graduates in China. With China has become the post potent engine in the global economy. It becomes a destination for many foreign educators to gain international exposure. Whilst these foreign educators (referred as independent expatriates (IE)) play an important role in introducing Western management knowledge and skills into China. The research finding shows the challenges facing these IE in China in terms of local culture and stability of employment. The author suggests the appropriate system needs to be established in order to retain the staff as well as managing effective knowledge transfer from IE to local staff.

In the final paper, Robert R. Edmonson investigates how knowledge is currently being collected, distributed, and managed and the perspective of KM’s strategic significance to performance within a broad range of Hong Kong organization. Despite numerous literatures on KM and practice in organizations, Robert R. Edmonson’s findings reflect the genuine situations and challenges facing organizations when putting KM into practice for creating competitive advantages in the fast changing business environment.

Although themes vary, the key message from these studies highlights the importance of strategic management of technology (MOT) and innovation capabilities within firms in China. Despite progress and improvement of economic performance of China in the last decade, how to develop a sustainable technology and innovation strategy remains a major issue. As indicated in OECD (2008) report that although China is already a major world player in S&T in terms of funding and HRs for R&D, the output still falls short of the levels of OECD countries with similar level R&D expenditures. No doubt China still has a long way to go before it can be considered one of the world top innovative nations. One of the core premises is to develop a sustainable strategy that integrate China within the global economy and enhance technology and innovation capacities of Chinese firms.

It is in this context that the 2010 China Association for Management of Technology (CAMOT, www.camot.org) International Conference aims to provide a platform for exploring linkages, strategic mechanisms, and modes of collaboration between China and the Western countries. The primary focus is on building innovation and technology management capabilities on both the national (macro) and corporate (micro) levels for enhancing competitiveness, growth, and economic welfare. The intent is to bring together academics, researchers, corporate leaders, policy makers, managers, and students for exchange of ideas, research findings, current experiences, best practices, and lessons learned. The intellectual lens will rotate around addressing several questions with the thematic content of “East-West” modes of collaboration in this field. Examples of the questions to be addressed include:

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  What does conceptual and empirical research tell us about current concepts and practices of managing R&D and technology in China; and how does it compare with western approaches and ideologies?

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  What are the major issues and critical success factors that would help in establishing mutually beneficial linkages between China and its Western trading partners for building technology management and innovation core capabilities?

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  What does investigative research tell us about comparative international practices for forging, creating, and establishing a “culture of innovation”?

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  How can China expedite and intensify its efforts in building contemporary, high-performance national innovation systems?

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  What are the benefits to the world from furthering the integration of China into the global innovation system, and what are the repercussions-if any?

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  How can China go about enhancing management’s core capabilities and skill set required for effective organization and management of technological innovation?

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  How can China create a healthy climate for Chinese companies to compete with multinational corporations? Should this be done through low cost manufacturing or through innovation, or both?

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  In addition to technological innovation, what does research tell us about China’s core capabilities in non-technological innovation: administrative, organizational, marketing and distribution channels?

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  Can China make the leap from being the world manufacturer to becoming a world-class inventor and innovator as well?

This conference, encoring the 2010 World Expo in Shanghai, is devoted to provide a comprehensive assessment of the current challenging issues of MOT in China and advance MOT research and MOT education in China. It should allow researchers, academics, and practitioners to debate on many crucial issues and provoke critical strategic thinking concerning the development and continuity of China’s technology strategy and innovation system.

At the end of this editorial, I would like to express my great thanks to the Emerald editorial team, particularly Victoria Buttigieg and Cristina Irving for their patience and cooperation for producing this particular issue of JKIC. I would also like to thank for all authors contribute to JKIC so far and hope to be in touch with you all for the CAMOT 2010 conference as the Programme Chair and continue sharing views with you on issues around knowledge and innovation in China.

Michael Badaway, Lucy Lu, Richard Li-Hua

About the author

Michael Badaway is a Global Professor of Management of Technology and Strategic Management at Virginia Tech, the USA. He received his doctorate with honors from New York University Stern Graduate School of Business. He is Editor-in-Chief, Journal of Engineering and Technology Management. Badaway is a leading authority on engineering management, management of technological innovation, technological entrepreneurship, new product development, R&D management, and the strategic MOT. His record includes over 250-articles, 28-authored or edited books. Many of his seminal publications were translated to Japanese, Spanish, Korean, and Chinese. His pioneering work and institutional building include: the founding of the first Technology and Innovation Management Assembly in the world in The Academy of Management; the founding Editor-in-Chief of the first Journal of Engineering and Technology Management – Elsevier, one of the original Five Nucleus Founders of the International Association for Management of Technology, and the Founding Editor-in-Chief of two book series on MOT. Badaway is the recipient of numerous national and international leadership honors, and distinguished service awards.