China’s Innovation Benefits the World.docVIP

China’s Innovation Benefits the World 　　THE strategy of innovation-driven develop- ment implemented in China is expected to present opportunities to transform and update the nation’s economy， while also improving quality and effectiveness， yet also giving a fillip to the sluggish world economy. 　　 China’s Innovation from Global Perspectives 　　In The China Effect on Global Innovation， McKinsey Global Institute （MGI） evaluates the overall innovation capacity of China’s enterprises. Identifying four archetypes of innovation， namely， science-based， engineeringbased， customer-focused， and efficiency-driven， the research measures Chinese companies’ innovation levels by reviewing the share of global revenue and profi t captured by Chinese companies in certain industries. 　　The MGI analysis indicates that Chinese companies show the greatest strengths in markets that require customer-focused innovation. Driven by considerable sales in the domestic market， Chinese fi rms across sectors such as household appliances （in which they account for 39 percent of global revenue）， Internet software （15 percent）， and consumer electronics （10 percent） take the lead among their global peers in respect of customerfocused innovation. 　　Furthermore， efficiency-driven innovation increases the value added to Chinese products and consolidates the country’s position as a preeminent global manufacturing hub. However， progress in Chinese engineering-based innovation is moving at different speeds in different markets. While several industries， such as high-speed rail， wind power and telecommunications equipment， have seen rapid growth， innovation capacity in such sectors as autos and medical devices still lags. China has yet to catch up with developed countries in science-based innovation. 　　In general， the environment and capacity for innovation constantly advance as the country progresses economically. China ranked 29th among 141 economies around the world in the Global Innovation Index