Presentation on theme: "China’s Technological Capability Jon Sigurdson East Asian Institute, Singapore & Stockholm School of Entrepreneurship Asian Development Bank Institute."— Presentation transcript:
China’s Technological Capability Jon Sigurdson East Asian Institute, Singapore & Stockholm School of Entrepreneurship Asian Development Bank Institute Beijing December 3-4
Textile Industry A US and EU companies currently buy from about 60 countries - might source from as few as 20 by 2006 and less than 10 by 2010. China might capture some 50 per cent of the trade compared with presently 16 per cent. Many Chinese companies are already offering improved supply-chain management and value- added services in design
Textile Industry B The average Chinese garment worker was paid $1,600 in 2001, more than double his Indian counterpart Despite the Chinese worker’s higher pay productivity was significantly higher: he adds $5,000 a year in value to the garments he processes, compared with $2,600 by his Indian equivalent. The difference reflects China’s greater investment in modern manufacturing equipment and in infrastructure such as transportation.
Three Goals of China's Science and Technology China aims to be one of the frontrunners among developing countries around 2010, to the medium level among world giants in science and technology 11 years later – 2020 - and squeeze into the top rankings among those giants around 2049 Source: Bai Chunli, Vice President of the Chinese Academy of Sciences People’s Daily, November 26 2004
China’s First S&T Strategy Make full use of the global innovative resources participate widely in bilateral, multilateral and global competition and cooperation enhance China's capability in innovation and industrialization level in science and technology.
China’s Second S&T Strategy boost the foundation and vigor of science and technology improve foresight at the frontiers of basic research and important hi-tech fields enhance original scientific innovation; prioritize information, life, material sciences and important interdisciplinary sciences realize breakthrough and leap forward in selected key technologies where China has a competitive advantage.
China’s Third S&T Strategy exert special efforts to solve problems affecting the development of science and technology. strengthen the construction of the national innovation system Strengthen reform on marketization promote the close combination of science and technology, with economic and social development - also with national security Reform and develop the educational system
China’s Changing Universities 1990-95 Xiahai – Go into business 1995-2000 Consolidation 2000-2005 Expansion 2005-2010 Upgrading quality
Critical Mass in Technology? By 2014, which is 10 years away, the number of college graduates in China could reach 80 million. At this point China could achieve sufficient critical mass to pose a strong challenge to its neighbours - the Japanese and South Koreans - in technological development. Let us assume that 20 million Chinese graduates in 2013 have engineering training and, among them, 1% are engaged in research on high-tech marketable products China would then have around 200,000 brains pushing that frontier
Challenging Factors - Moreira Endowment Productivity Scale Government suppport Technology upgrading and frontier development
China’s Position in Selected Sectors The IT sector Integrated Circuits High-performance computers Aircraft Other sectors, e.g. biotechnology
Integrated Circuits Domestic demand: memories. ASICs etc. for global IT products Earlier: almost total imports Domestic supply: - Taiwan companies: SMIC - Intel & Infineon&Motorola & Matsushita, etc. - Chinese companies started to produce advanced processor chips: Arca, Longxin
High-performance Computers China is in late 2004 in possession of 14 supercomputers out of a total of 500 which gives China a fourth ranking in the world on level of Germany and only behind the US, Japan and Great Britain. The Shanghai Supercomputer Center in June 2004 assembled a machine that at the time became the world’s 10th fastest computer, by using more than 2,500 chips designed and manufactured by Advanced Micro Devices in the US
Supercomputer companies Lenovo (formerly Legend) spun-off from the Institute of Computing Technology (ICT) in 1981 and entered the HPC market in 2001. ICT is one of major research institute of the Chinese Academy of Sciences Dawning that was spun-off from ICT in 1995 and the same year entered the HPC market. Development jointly with ICT and the Shanghai Supercomputer Center. Langchao entered the HPC market in 2002 Galactic Computing become the recent entrant in the computer industry in 2004
China’s Aircraft Industry ”Aviation Industries of China” CAICI – regional jet domestic development – ARJ21 CAICII - regional jet joint venture with Embraer – EMB170 Boeing and Airbus - subcontractors civil aviation fleet would have to add 1,400 large jet liners by the year 2022, which if all are imported, as in the past, would cost in the region of US$100 billion aviation industry executive declared in March 2004 that he anticipates China's first large aircraft to fly by 2018
Ningbo – Moulding Industry Metal molding already strong is expanding into new product areas, attracting investments from Hong Kong. There are three molding industry centers in China. One is Shenzhen which has its focus on die-casting for electronics. The second one is Taichu in Zhejiang that is strong in plastics. The third center is Ningbo which has become strong in molding for the automobile sector and for home electric appliances.
Ningbo – Moulding cluster Molding industry employs some 100,000 workers. 1.Expansion in Shanghai forcing an industrial restructuring in Ningbo. 2.Private industry has played a pivotal role. 3.Expanding demand from Japan, Germany and Taiwan has fostered a local development of the molding industry 4.Machinery for plastics molding developed at early stage. Ningbo enterprises deliver molds for products that weigh only a few grams to pieces as large as 50 kilograms Subsidiaries in the US, and companies from Korea and Japan have made investments in Ningbo.
1. Operational clusters Proximity gives speed of throughput, product changeovers, increasingly specialized engineering and assembly labor. Operational clusters may on occasion be sources of new product ideas, but their principal goal is to achieve operational efficiencies Any new technologies they create are meant to improve production processes of supply chain management
2. Technological clusters Technological clusters offer co-location of activities that lead to the recognition of new market opportunities, the development of new technologies and the design of new products. Such cluster change over time as new firms enter into the technological field and new designs offer or demand major changes in global production networks.