Global view vital for Greater China innovation
New strategies are required for key players in Greater China to move beyond a regional focus in extracting full value from a strong skills base
More than ever, innovation is key to achieving sustainable competitive advantage and growth, both for companies and countries.
Together, Hong Kong, mainland China and Taiwan have made great strides in increasing their regional innovation capability in line with the priorities to boost indigenous innovation under the 12th five-year plan.
But even so, according to the World Economic Forum's Global Competitiveness Report for 2012-13, the global innovation rankings of the three still fall far short of their potential (with Hong Kong ranking 26th, the mainland 33rd and Taiwan 14th).
Unleashing this innovative potential will require firms and research institutes to move beyond a focus on establishing a Greater China regional innovation capability to building a global innovation model. Thinking and acting globally is vital, because the critical inputs for innovation - the skills, knowledge, technologies and lead customers - can't all be found in one place or region but are increasingly distributed across the globe.
Some of the most successful innovative firms in Greater China are taking advantage of global innovation. Beijing Genomics Institute, for example, is able to complement its own formidable capabilities with cutting-edge knowledge and skills from around the world through a combination of its own global research network and collaborations with a wide range of companies and institutes including GE Healthcare, Novo Nordisk, the Gates Foundation and Edinburgh University. By combining the best capabilities and knowledge from a global canvas, BGI has become one of the leading genetic sequencing companies in the world.
Transitioning from local or regional to global innovation requires new skills, tools, processes and strategies. Based on a decade of research at over 50 global companies, we have identified a roadmap for global innovation around three pillars of activity: finding and accessing critical skills and knowledge; communicating new skills and knowledge; and collaborating internally and externally.