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This post was edited by sfphoto at 2018-4-27 09:55|
huaqiao Post time: 2018-4-26 15:17
Financial incentive is only a part of the equation to innovation. The other one is Research and Deve ...
State-funded technology R&D is needed for high-tech industries because private sector enterprises lack the will and the resources to undertake technology R&D. Most Chinese private sector enterprises focus only on short-term profits and depend upon low-cost manufacturing to compete on price. Only a few high-tech companies such as Huawei have succeeded in global markets by investing in technology R&D while the rest depend upon foreign technology.
China should setup State-funded technology R&D centers focused on high-tech industry clusters such as electric vehicles, robotics, AI, IoT, biotech, e-commerce, nanotechnology, semiconductors, aerospace, new energy, smart cities, CAD/CAM, 4G/5G telecommunications, mobile Internet, 3D printing, healthcare, green buildings, maglevs, high-speed rail, urban transit, drones, supercomputing, animation, quantum technologies, etc. These State-funded technology R&D centers will ideally be located in State-level High-tech Zones which are directly administered by SOEs reporting to the Central Government thus bypassing the local governments.
An example case study is Taiwan’s Industrial Technology Research Institute based in the Hsinchu Science Park. Founded in 1973, the State-funded ITRI succeeded in incubating TSMC and UMC which are the world’s leading companies in the semiconductor manufacturing industry. With a market cap greater than Intel, TSMC is the world’s biggest semiconductor company with 60% market share in the silicon foundry business and has the world’s most advanced 7nm semiconductor process technology, ahead of Intel’s 10nm technology. ITRI also successfully incubated Taiwan’s optoelectronics industry which commands 90% market share in the flat-panel display industry, supplying the world’s leading TV brands and PC OEMs.
Innovation will come only after three things are satisfied:
1). Engineering R&D in Academic Research Institutions:
This is where professors, academicians and PhD students do the Engineering R&D to discover engineering principles based on Applied Science.
2). Technology R&D in Industrial Research Institutions:
This is where researchers, engineers and scientists with Masters and PhDs do the Technology R&D to design prototypes for industrial projects.
3). Product/Service R&D in Hi-tech startups:
This is where entrepreneurs, managers and engineers do the Product/Service R&D to create products or services based on viable business models.
These hi-tech startups are spinoffs from the technology R&D projects and should be given seed funding from the industrial research institutes. After developing a product/service prototype, these startups can then raise additional capital from both State-owned and privately-owned VC firms.