Innovation and leadership
- 发布 于 November 2nd, 2008
- 归类 在 English
落园专注经济视角下的互联网 / Economic Observation of the Internet
This article is written in English first and I translate it into Chinese then. If you are more willing to read the Chinese version you can follow the link below:
http://www.loyhome.cn/480.html
To many leaders there is a simple question: how to improve the productivity and efficiency. The innovation is defined as something newly introduced and in economics we classify it into 5 categories: introduce a new production or new quality; adopt a new method in producing; exploit a new area of market; find a new way of gaining resources; establish a new organization form.
Now especially in China the innovation is a popular topic that you can see it everywhere when an announcement is needed. But on the contrary, there are few ones which can be well used in the practical applications. That means we do know that we need to change, but we do not know how to. Moreover, some people regard it as a humorous answer when they have no idea about what can be done. The fact is that it’s easier saying than doing.
Meanwhile, the managers often take the innovation into account and they spend much money and energy on encouraging their employers. China is on the way of fast developing and innovation is essential to keep the rapid growth speed. In this financial storm nowadays, many companies are experiencing the worst situation with the appreciation of RMB and the descending demand in the US and other western countries. We often say that the challenge and chance comes together but when it comes to this situation now, what’s the effective way? The Chinese leaders are devoting to the industry reform and many of the new techniques are waiting to be applied in producing. Many small factories in the south China are confronted with the choice to change their final productions instead of the labor-intensive ones. From MP3 to cell phones, from textile to toys, from shampoo to cosmetic, what’s the next?
Every year the government input many resources into scientific and technological researches and many companies do these as well. But the biggest proportion of our export goods is machines and other manufactures. Compared with the ones we import from Japan in the pattern which is called inner-industry trade, our productions contain lower value and the only advantage in competition is our price, which is mainly determined by our low cost of labor. According to the statistics from the government, the wage level is increasing continuously and is nearly beyond the largest level that the factories can support thereby causing a large scale of bankruptcy.
In many economic textbooks the author mentioned that the leader or the enterpriser is worth respects because they are fighting with the big risk in the market. Thanks to their effort and spirit we can live in this flourishing world today. In the following years China is really in the need of excellent enterprisers and this is the only way to create or improve the new structure of our modern society. Many domestic managers have the awareness of innovation but they are not strong enough to stand the huge risk and enormous input so that it’s the government’s responsibility to establish the strategy of encouraging and giving strong financial support to the enterprises.
Innovation plays a pivotal role in the future international competition among developed countries and emerging economies. Every aspect of innovation is important but the most significant one is the new way of productions so that we can share a bigger part of the trade cake which enable us to live a much better life. That is the mission of ours and our offspring’s.
To my dear Chinese readers: this article is more like a practice of my English writing so the Chinese version may not be as interesting and vivid as the other articles I wrote before. The only thing I can say is sorry because it’s really hard for me to use a dramatic way of English writing as well as Chinese, which I have been studying and using for more than 20 years. To write more in English, the simple wish is to attract more foreign readers and let they know the view of a Chinese University student. May be there’s a long way to go to realize this dream, but when I first established this Chinese blog there are hardly any readers and now it’s much better beyond my thought. So I will persist and try to communicate with more foreign friends. Thanks for all your supports and thanks for reading.
I will continue my economic writing work and try to have influence on more readers. Thanks to Google, the great search engine, for bringing so many readers here.
Posted by Liyun
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