The Sources of China’s Innovativeness: Why China's "Unstoppable" Innovation Powerhouse Might Falter

Abstract

Western governments appear to fear that China is an ­innovation power­house on an almost unstoppable path to dominating ­future technologies. This is quite a turnaround. Only a few years ago, Western policies were crafted on the assumption that China was a copycat incapable of innovation. A focus on Intellectual Property theft as the Chinese "sin" that drove China's technological development led many in the West to miss what I have identified as the "Five Virtues" that have made China the innovation powerhouse it is today. China's future success is not ­in­evitable, however, but dependent on a delicate policy ecosystem.