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The Changing Face of Innovation in China
Article

The Changing Face of Innovation in China

Dan Prud’homme and Max von Zedtwitz
MIT Sloan Management Review, 2018
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8

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  • Analytical
  • Eye Opening
  • Hot Topic

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Gone are the days when China manufactured the creations of others but didn’t create products itself. The Chinese government has successfully cultivated institutions that nurture innovation. Making goods for other countries has proven a fertile training ground for Chinese nationals who are now ready to innovate within locally owned companies. Business professors Dan Prud’homme and Max von Zedtwitz explain how non-Chinese multinationals must respond.

Summary

Many foreign executives now perceive Chinese competitors as “just as innovative or more innovative” than their own companies. So what do foreign companies need to know to keep from floundering in the new China?

  • “In recruiting, foreignness is becoming a liability” – With better or equal benefits and more cultural knowledge, Chinese companies are attracting a greater slice of local R&D brainpower. Ensure you promote locals into management, so Chinese job candidates won’t perceive a glass ceiling. Let go of stereotypes, and create job profiles that are attractive...

About the Authors

Dan Prud’homme teaches at EMLV School of Business at Pôle Universitaire Léonard de Vinci in Paris, France. Max von Zedtwitz is a professor at Kaunas University of Technology, Lithuania, and director of the GLORAD Center for Global R&D and Innovation.

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