Chinas Technology Innovation and Global Business Growth-2

By Austin Umezurike, Ph.D

Having made progress in technology innovation, chinas next frontier was to develop technology
strategy to insure sustainability. As a result, China acquired some
foreign investors through a central planning committee that changed
their orientation to commerce and moved results of research and
development from government to private enterprise through public
private partnership (PPP).
Overall, Chinas technology development is based on the medium to
long term plan (MLP) developed in 2006. The plan encourages china to
become a technology innovation society by 2020 and world leader in science and technology by 2050
and to leapfrog to being the worlds foremost technology leader by 2015 (Cao, 2006) Chinas gross
domestic product (GDP) has grown at an average rate of 9.5% over the last four years.
Chinese companies are setting up research and development subsidiaries in Germany where they hope
to attract skilled Germans by locating their firms within clusters of Germanys training facilities, research
institutes and skilled manpower. China has increased her investment in Africa over the past ten years as
part of focused strategy. China intends to take advantage of natural resources that are in abundance in
Africa by acquiring new allies from the continent. It is no wonder that China funded and built the new
OAU headquarters in Addis Ababa, Ethiopia.
As part of this strategy, the Chinese have started buying over some Nigerias oil pipeline leases (OPLs)
from Shell petroleum Development Company which is divesting from the country due to kidnapping and
terrorism. Chinas strategy for technology innovation is through domination of the computer software
industry and programming which has been proliferated in china. The software industry is being
deliberately sustained in china as competitive edge and has been limited by piracy.
In general, Chinas innovation strategy entailed attracting expertise from Germany, investing in Africa,
reducing brain drain, developing own brand and dominating the software development industry. It
also included partnering with government, private sector and academia to conduct innovative
research studies that would be implemented by private business sector.

This is the last of the two publication series on Chinas technology innovation
References:
Cao, C., Simon, D. & Suttmeier, R. (2009). Commentary Chinas Innovation challenge.
Innovation: Management, Policy & Practice. 11(2). 253-259

Meyer, A. (2008). Technology strategy and Chinas technology capacity building. Journal of
Technology Management. 3(2). 137-153

Dr. Austin Umezurike is an Information Technology Director with Global High Technology Consulting