China's spectacular economic rise is producing some of the world's biggest and fastest-growing companies. Does this also mean that China is an innovation power on par with America? On the one hand, boosters point to the soaring number of patents held by Chinese technology firms like Huawei and Lenovo, the number of Chinese PhDs in technical fields graduating each year and the success of internet firms like Alibaba and Tencent as evidence that China is leapfrogging to the forefront of global innovation. On the other hand, sceptics highlight the lack of rule of law and respect for intellectual property rights inside the country, widespread corporate espionage and cybertheft, and forced technology transfers as evidence that China remains a copycat and a cheat.
Particularly important as the country's export-led growth model based on cheap labour runs out of steam. Now China's leaders openly talk about the need to shift from exports to domestic consumption, and of the need to boost services. They are explicitly targeting innovation as a national priority, in the hope of speeding the shift from brawn to brain that is required to prosper in this new century's ideas economy. So is China a world-class innovator or not? What do you think?