Cultural challenges to innovation in China

business — By Bob Riel on December 27, 2006 at 7:15 am

Business Week recently published an interesting column by Nandani Lynton in which she discussed some of the cultural challenges that face China in its efforts to build a more innovative economy.

Innovation is the buzzword in China these days. The mainland overtook Japan this year to become the world’s No. 2 investor in R&D after the U.S. The government has declared that by 2010, China will be an innovative society.

Despite these national goals, however, she describes some of the “barriers to innovation” in Chinese society.

The very structure of Chinese society has inherent barriers to innovation. The country’s monolithic culture, growing from a predominantly Han-Chinese tradition, and a deep tendency toward strong hierarchies, does not encourage thinking in new ways or including outsiders. This makes it difficult to understand new markets, to think creatively, or to accept eccentrics.

Chinese have a strong group focus, and prefer to work, communicate, and share information with people they know and trust. They often exclude anyone from another department or division even within the same company or university, much less from outside the organization.

All these habits discourage appreciation of different types of thought, behavior, or people. That stifles the kind of cross-fertilization and cooperation that multinationals tap to boost innovation.

Interestingly, though, she also sees a culture that is changing in a way that may make it more open to innovation in the future.

…professors point out that students no longer respect authority or do what they are told. This may create havoc as this generation enters the workforce, raising new questions about teamwork, for example – but it bodes well for developing wacky people who think in different, innovative ways.