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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China is on track to become the world’s largest economy some time in the next few decades. This could not have happened without the development and widespread deployment of scores of standards that provide an infrastructure for international trade. The tightly integrated supply chains that now link Chinese firms to Western consumers rely on standards for containerized shipping, electronic order flow and payment, bar codes, and even management systems.

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While a lot of attention has been placed on the growing standards war for next generation wireless network standards between LTE and WiMAX – for instance see here and here – a number of interesting developments have been made regarding the Chinese developed outsider TD-LTE.

TD-LTE is a standard for wireless mobile networks and 4G candidate which has been developed by China Mobile, building upon the TD-SCDMA 3G standard. The TD-LTE stems from China’s indigenous innovation policy which seeks to reduce China’s reliance upon foreign IPR by supporting the use of domestic alternatives. (Don’t miss the upcoming Talkstandards open forum for further discussion on China’s standards policy).
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In Strategic ICT standardization by China we ask the question: So what effects can be expected from this level of political involvement? The role of China is also in the spotlight in the latest issue of Fortune magazine China buys the world (read article here).

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Chinese authorities have identified ICT industry as a key sector for future development and allocating significant resources to spur innovation; the plan is for national R&D expenditures to reach 2.5 percent of GDP 2020. The Chinese State Council’s official policy clearly states long term goals for Chinese ICT development and a direct goal to reduce foreign dependency.
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中国自主創新与信息通信技术标准

China’s policy of promoting indigenous innovation in ICT industries is bifurcated, with large-scale, capital intensive development in a few urban centers supporting the national strategy of becoming an exporter of technologies and standards, while enterprises in provincial cities and towns are left to fend for themselves with few central government subsidies or protections, writes Jane K Winn.
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After the establishment of the mobile telephony infrastructures in Europe and the US during the 1990ies, the Asian mobile markets, especially China moved into the focus of industry and policy. The policy makers in China were well aware on the one hand that the large Chinese market was able to serve as a base for the establishment of a mobile telecommunication standard as a tool for supporting the development of the national industry. On the other hand, they also perceived that the technological capacity of Chinese firms ten years ago was not sufficient advanced yet to elaborate a China-specific  mobile standard that might eventually be competitive at international markets. However it is not clear that there was a rational and concerted policy process across the Chinese government with regards to telecommunications: one would argue that telecommunications policy and industry policy were operating rather separately.
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