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© Max von Zedtwitz, email@example.com China Frontier Research 1 GLORAD Research Center for Global R&D Management Overview Prof. Dr. Max von Zedtwitz GLORAD (B-55) School of Economics and Management Tsinghua University, Beijing firstname.lastname@example.org / www.glorad.org
© Max von Zedtwitz, email@example.com Tsinghua University 2 Established in 1911 One Nobel prize winner (C.N. Yang) and one Turing Award winner (C.C. Yao) 900 full professors 1’200 associate professors 24 CAS and 24 CAE members 11 schools, 44 departments 20’000+ students 12’000 undergraduate 6’200 masters 2’800 doctoral Sciences Architecture Civil engineering Mechanical engineering Information sciences Humanities and social sciences Economics and management Law Arts and design Public policy Applied technology (Medicine) Sciences Architecture Civil engineering Mechanical engineering Information sciences Humanities and social sciences Economics and management Law Arts and design Public policy Applied technology (Medicine)
© Max von Zedtwitz, firstname.lastname@example.org Tsinghua – School of Economics and Management 3 Founded in 1984 (founding dean: Zhu Rongji) Top ranked in China among Chinese MBA and business schools About 120 full-time faculty 5 doctoral programs 9 Masters programs MBA / EMBA, etc. Fees: MBA 90-120’000 RMB 40+ Int’l exchange programs Incr. number of int’l students 2450 MBA Students: 300 Int’l MBA (with MIT) 400 Full-time MBA 500 Part-time MBA 150 Acct MBA 700 Spring MBA 2450 MBA Students: 300 Int’l MBA (with MIT) 400 Full-time MBA 500 Part-time MBA 150 Acct MBA 700 Spring MBA
© Max von Zedtwitz, email@example.com GLORAD within the Academic Hierarchy 4 Tsinghua School of Econ & Mgmt Dept of Tech. Econ. RC of Tech. Innov. Univ. of St. Gallen School of Mgmt Institute of Tech Mgmt Dept. for Tech. Innov. Dept. for Tech. Innov. GLORAD www.glorad.org TECTEM - Transfer Center for Technology Management 12 people Focus on innovations research, R&D consulting, training 17+ people Focus on global R&D management research
© Max von Zedtwitz, firstname.lastname@example.org Max von Zedtwitz – Professional Background Since 2003: Prof. of Technology & Innov. Management Tsinghua University (Beijing, PR China) Director of GLOR&D + Exed/PhD programs + AsiaCompete 2000 - 2003: Prof. of Technology Management IMD (Lausanne, Switzerland) Tech-based entrepreneurship & innovation 1998 - 2000: Post-Doctoral Fellow Harvard (Boston, USA) International innovation & start-up management 1994 - 1998: Research Associate ITEM (St. Gallen, Switzerland) Innovation & technology management 1989 - 1994: Computer Science & Engineering Siemens (USA) / NTT-ATR (Japan) / ETH (Switz.) Nucleonics simulation research, algorithm design, MIS development, etc. SM 1-5
© Max von Zedtwitz, email@example.com China Frontier Research 6 China Realities from a Frontier Research Perspective Prof. Dr. Max von Zedtwitz GLORAD (B-55) School of Economics and Management Tsinghua University, Beijing firstname.lastname@example.org / www.glorad.org
© Max von Zedtwitz, email@example.com Key Question: Is China Going to be a SOURCE of Innovation? Traditional View China imports technology from Western companies in return for market access. Chinese companies copy, don’t invent. Chinese companies either receive gov’t protection or innovate using copied Western business models. Putting this View into Perspective Imitation is a natural (necessary?) step before innovation: Japan, Korea, USA, Switzerland as examples Artists/students, too, learn how to copy “the masters”… “Western” is really a base of about 20 different contributing countries: China can become a top-5 player by gaining just a 10% “market share” in innovations.
© Max von Zedtwitz, firstname.lastname@example.org Chinese Innovations in Retrospective China 1045Printing / movable type 800Gunpowder (also used for military applications) 300Compass developed 100 bcPaper invented in Gansu Province 128Seismoscope invented by Chang Heng Elsewhere 1455Gutenberg’s printing press 1300Gunpowder introduced to Europe 1150Compass introduced to Europe 900Paper introduced to Europe via Arabs 1800Seimoscope reinvented in Europe
© Max von Zedtwitz, email@example.com Chinese Academic Research – Some Examples E.g., Structural Biology, Tsinghua University: Cloning of human liver related genes Crystal structures of SARS Co Virus and MHV S protein fusion cores Crystal structure of the mitochondrial respiratory membrane protein Complex II E.g., CAS-SIMM: Artemether, a novel anti-malarial drug Periaqueductal gray matter has been demonstrated to be the most effective site in the whole nervous system for the abolition of pain by micro-injection of morphine Sobuzoxan, an anti-tumor drug Huperzine A (HupA), a novel alkaloid isolated from the Chinese medicinal herb, Huperzia serrata, was found to be a potent, reversible and selective inhibitor of AChE, ie. It could improve memory deficiencies in aged population and patients with Alzheimer's disease E.g., Center for Advanced Study, Tsinghua University: Chi-Chih Yao, Winner of the Turing Award, Computational Complexity and Algorithms
© Max von Zedtwitz, firstname.lastname@example.org Chinese Inventions: Brain-Machine-Interfaces Where:Tsinghua Institute of Neural Engineering at the Tsinghua School of Medicine When:Spring 2006 What:Linking brain activity to a computer, thus interfacing with electronic/mechanical devices Demonstrated Applications: Control a robot dog to kick a ball Anticipated Applications: Controlling artificial limbs Steering wheelchairs Surfing the internet by mind control Guiding remote assistants (e.g., for rescue)
© Max von Zedtwitz, email@example.com Chemistry Patent Applications are Rising Fast in China
© Max von Zedtwitz, firstname.lastname@example.org In China, Number of Graduate Students is Increasing Fast 57546 72300 103400 133100 164300 220200 273000 14962 19900 25100 32100 38300 48700 53300 0 50000 100000 150000 200000 250000 300000 350000 1998199920002001200220032004 PhD Master
© Max von Zedtwitz, email@example.com Relative Share of Graduates from Different Faculties 0600 The last slide was: Philosophy Economics Engineering Sciences
© Max von Zedtwitz, firstname.lastname@example.org Financial Support of Top Universities in China 0600 The last slide was:
© Max von Zedtwitz, email@example.com Insights in Chinese Academic R&D Collaborations China is a fast developing R&D site Chinese universities are developing fast, too Academic research is mainly coming from basic research, but applied research is growing fast Front end research subjects (competing with western groups) Highly motivated students; eager to learn, large research groups Partly old equipment (but highly inventive proceedings) Work hours: around the clock 60% of the students who leave the university try to go abroad; 20% apply for a job in industry; 20% stay at the university Industrial research is conducted mainly at universities less experience in scale-up of processes (changing) Universities and industrial companies often have the same staff (smaller companies use students as “scientists”)
© Max von Zedtwitz, firstname.lastname@example.org “Chinese R&D Engineers are Not Creative” TRUE: Chinese education system and culture does not encourage individualistic expression and creativity FALSE: Chinese people are inherently less creative (counter example: see overseas Chinese scientists and scholars) What to Do: Create a distinctly foreign/int’l environment where Chinese engineers can behave differently Have Chinese overseas returnees serve as leading examples Sensitize yourself to Chinese expressions of creativity and manage and reward accordingly
© Max von Zedtwitz, email@example.com Global R&D Spending: China Moves to #3 (in PPP) Total world R&D = US$ 764bn (2004) in PPP U.S. Japan PRC Ge Fr UK Other EU SKo Other OECD Other 38% 15% 7% 5% 4% 10% 3% 4% 5% Ref: AAAS, Wash. DC, 2005 9%
© Max von Zedtwitz, firstname.lastname@example.org Ten Technologies to Watch in China Field Information & telecommunication Life sciences and biotechnology New materials Technology 1.Next-generation mobile telecommunication (beyond 3G) 2.Next-generation networks 3.Nanometer chips (targeting 12” 90/65nm chips) 4.Chinese information processing 5.Functional genomics 6.Medical biotechnology 7.Bioinformatics 8.Functional proteomics 9.Technology for breeding new trans-gene farm crops 10.Nanomaterials and nanotechnologies Ref: Rand Corp (2005): Strategic Choices in S&T: Korea in an Era of Rising China
© Max von Zedtwitz, email@example.com Chinese Industrial R&D and Innovation E.g., Huawei: 14,500 employees, >10% of revenue dedicated to R&D, >40% of employees in R&D CMM5 certification – the highest accreditation available Member of 60 international standardization organizations E.g. ITU-T, 3GPP2, ETSI, OIF, RPR, OMA, TIA, TMF… Filed over 6500 patent applications by end of 2004 Granted over 1400 patents to date E.g., CNPC: CNPC invested 4200M RMB in R&D in 2004 CNPC has three hundred R&D institutes in China, including 7 institutes directly under HQ, 65 under the secondary companies, about 250 secondary branches R&D centre. 81 major research projects, including 15 national key ones and 66 company ones 594 patents were awarded Others: ZTE, Haier, TCL, Lenovo, Dongfang Motors, Hisense, Li-Ning, Founder, etc.
© Max von Zedtwitz, firstname.lastname@example.org Chinese Inventions: TD-SCDMA TD-SCDMA = Time Division-Synchronous Code Division Multiple Access 3G mobile telecommunications standard Pursued by the Chinese Academy of Telecommunications Technology (CATT), Datang and Siemens AG, in an attempt to develop home-grown technology and not be "dependent on Western technology“. Siemens also in a JV with Huawei (for marketing and manufacturing). On January 20, 2006, Ministry of Information Industry of the People's Republic of China formally announced that TD-SCDMA is the country's standard of 3G mobile telecommunication. TD-SCDMA 3G phones are expected to become available at the end of 2006 and other 3G networks will be delayed until TD-SCDMA is ready. More flexible, less costly, greater spectrum efficient, lower power consumption than W-CDMA…
© Max von Zedtwitz, email@example.com China’s Domestic R&D: Why Internationalize…? Why a Chinese firm would internationalize R&D: Local technology and market intelligence Hiring foreign experts Developing a global image Supporting local sales A necessary (for some) but painful process! Example Haier: #5 white-goods company worldwide Competes and cooperates with companies like Siemens, Whirlpool, GE R&D in Qingdao, Beijing, Guizhou R&D in Hong Kong (now PRC), London, Silicon Valley, Sydney
© Max von Zedtwitz, firstname.lastname@example.org Implications for R&D from China Chinese companies are about to set up R&D in hot spots around the world Boston, Silicon Valley, Japan, UK, Germany But also India, South America, Korea, Western Asia, etc. Chinese companies are facing steep learning challenges with respect to doing R&D, and managing international organizations: Centralized R&D configurations and hubs are to be expected The Chinese have a tremendous willpower to adopt foreign technologies and demonstrated that they can do so fast If the technology doesn’t come to China easily, local R&D centers can source technology where it is created, and secure global ownership rights Chinese companies will compete over top graduates from Western universities
© Max von Zedtwitz, Brussels Science & Technology in China - Some Issues Prof. Dr. Max von Zedtwitz
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