Friday, February 15, 2013

Innovation in China


Can we innovate in terms of national competitiveness in the global economy? This is what our minister would productive recovery, it is demonstrated China, according to the latest issue of China Economist (Vol. 7, No. 6, November-December 2012), the influential journal Science Academy China Social.
Its editor, Jin Bei, highlights the role of land in the development Chinese: China has captured alien technology with a "maximum use of immobile factors to attract mobile factors."

No qualms about the "stationary", with workers subjected to a "low labor law" and especially access to land almost free "protecting low assigns" (peasants, urban poor), thus China has been able to attract "as much capital in such a short time."

On the merits, the choice of promoting "two facilities that other countries can not copy" is a logic of absolute advantage, not comparative, as advocated by the theory of international trade. It also gives the flavor of the day "soil factor", abandoned since Adam Smith. And the success of this strategy, bringing China leading in many industries, indicates that it is primarily "benefits built" theory which generally minimizes the possibility ... In short, it can be argued that China has innovated in the first stage of globalization.

BEGIN THE SECOND GLOBALIZATION

But according to another contributor, Liu Zhibiao, the country must now begin its second globalization, in "governing relations with its partners around the domestic economy." Taking the floor against the thesis of deindustrialization Western Zhibiao Liu argues that China actually provides direct financing and indirect economic transformation in rich countries.

The generous welcome Chinese investment and accelerate surcompétition decreasing profits for Chinese companies, while saving fixed capital formation, the effort permitted by Chinese industrial production, allow the West to promote its specialization towards activities high efficiency, innovation is very little domestic Chinese protected from foreign innovation financed by a dollar held at arms length by the Chinese surplus!

We share or not this analysis, the agenda advocated by Liu Zhibiao is clear: a second globalization around the Chinese market - rather than its productive base - which would allow the appeal without even build comparative advantages, " using factors including advanced technology, knowledge and skills to build the Western China own competitiveness. "

Liu speaks elegantly Zhibiao "siphon effect of the size of the Chinese market to serve the industrial rise of China." And to remove any doubt as to the ultimate goal, "it would take less time for China to surpass the developed countries" through it.

What is good for China it is also not good for the world? "If Western countries were plunged into a prolonged recession, and if their ability to use advanced factors should decline," while "globalization is not sustainable" ...

China

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