Dieter Ernst’s December 9th Article “Indigenous Innovation and Globalization – the Challenge for China’s Standardization Strategy” (see: www.talkstandards.com/indigenous-innovation-and-globalization) resulted in an incredibly in-depth and interesting discussion and continues to draw comment.

In an effort to ease the introduction of any interested parties who may have missed the original live discussion we have put the original article and resulting web discussion together in pdf form.

See here: www.talkstandards.com/wp-content/uploads/2011/01/Talkstandards-Indigenous-Innovation-and-Globalization-20110103.pdf

If you do get a chance to take a look a the discussion, please add any comments you may have to the original article.

A downloadable version of this article and discussion can be found here:

www.talkstandards.com/wp-content/uploads/2011/01/Talkstandards-Indigenous-Innovation-and-Globalization-20110103.pdf

Dieter Ernst

China’s 11^th Five-Year Plan for Standardization defines standardization as an enabling platform for indigenous innovation. That commitment to use standards as a tool for economic development has virtually no parallel. It reflects a major transition in China’s development model from export-oriented industrialization to an upgrading-through-innovation strategy. It is this development aspect that distinguishes China’s standardization strategy from standardization strategies in the US, the EU and Japan.
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On my way to Munich recently, I bought a copy of the Economist with the headline: Dangers of rising china. So, the geopolitical influence of China seems to be an apt topic for the forum, one which we have covered before.

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In June, Talkstandards.com hosted an open forum which discussed the standards system in the People’s Republic of China. A series of articles were posted by contributors which covered a range of issues related to China’s involvement and cooperation with standards setting in the EU, US and abroad.

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This article is co-authored by Anne Layne-Farrar and Vanessa Yanhua Zhang (bio Here)

In the past decade, Chinese companies have aggressively invested in R&D as a path toward meaningful participation in domestic and international standard setting. These efforts are aligned with broader Chinese ambitions to transform the domestic industry structure from “made-in-China” to “innovated-in-China”. This transformation will leverage China’s influence in the global economy community via the nation’s intellectual property rights (IPR) and standardisation strategy, which is part of its overall industrial policy.

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In recent years China’s standardization system has matured considerably. Today, China has more standards than Europe, covering more aspects of economic operations than any industrialized country. China wants to be recognized as a major player in standardization, including export of its standardization deliverables. One of the growing ambitions of this country is to become a leading high-technology country, making a transformation from the “factory of the world” to an innovation-based society and from standards-follower to standards-setter for the rest of the world. This target is evident also in the 11th Five year plan for 2006-2011, where standardization is mentioned many times as a tool to leapfrog innovation, with specific emphasis put on the high-tech and ICT sectors.

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In June 2008, the China State Council officially promulgated the “Outline of National Intellectual Property Strategy.” The Outline identified “the development and improvement of the standard-related policies, standardization of the behavior of incorporating patents into standards” as a special task. In November 2009, the Standards Administration of China (SAC) issued for public comments the “Regulations on the Administration of the Formulation and Revision of Patent-Involving National Standards (Interim).” The China National Institute of Standardization (CNIS) followed shortly thereafter in early 2010 releasing for comment the draft “Disposal Rules for the Inclusion of Patents in National Standards” . Together these documents reveal the approach China is contemplating for meeting the mandate of the China State Council.

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Chinaʼs interest in developing and implementing a national standards strategy continues to attract widespread international attention. The strategy has been incorporated into the web of policies in support of Chinaʼs ambitious 15 year Medium to Long-term Plan (MLP) for scientific and technological development intended to make China an “innovative society” by the year 2020. As such, the standard strategy can be viewed as an instrument of industrial policy, now widely referred to as Chinaʼs “indigenous innovation” program, the implementation of which is perceived by the companies and governments of the OECD world as a threat to international norms of standardization.

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Newsweek this week featured an interesting article titled: “the Post China World”.

On first impressions, it seems odd to be speaking of a “Post China World” – but upon reading, the article makes some interesting points.
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China has substantially improved its capacity to develop and implement a broad set of interoperability standards, security protocols, and product specifications as an enabling platform for the development of indigenous innovation. However, as rising complexity in technology, business organization, market structure and laws and regulations is reshaping the international standardization landscape, China’s government-centered standardization strategy is under pressure. While rising complexity creates new opportunities for learning and institutional innovations, it also increases the cost of standards development and its risks, especially for Chinese companies that seek to move beyond the status of fast-followers to become co-shapers of international standards.

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