Chinese Innovation in Product, Process and Strategy: The End of Low Cost Era?

Some visionary scholars and practitioners have testified to Chinese innovation as a reality (e.g. Abrami et al., 2014; McKinsey and Company, 2012); although most others are still not giving any credit to the innovation in China yet (Zhang and Olivares, 2012). To start with, we need to look at the strategic evolution in the western organizational theory and also distinguish different types of innovation. In terms of innovation types, one commonly understood radical innovation is a basic scientific and technological invention, which could essentially have a profound impact on human life. Another is organizational innovation, the crucial requirement for a business to run successfully. Different classifications and typologies co-exist, and it can be confusing for readers, seeing these together, to form conclusions as to whether or not China, or indeed Chinese enterprises, are innovative.