|Exports no longer only from coastal provinces|
Photo: Danny Friedmann
The report reads like the empirical support of professors Williamson and Ming's great book Dragons at your door, see IP Dragon's Book Review. Because although the report makes clear that the developing countries mostly prefer low technological solutions, it also tells that it gives the Chinese manufacturers, that use innovation to produce at lower costs and offer more variety, the economies of scale so that the Chinese companies can offer higher technological solutions to more developed markets later on and become formidable competitors of companies such as Caterpillar. In other words the companies in the OECD can expect some enormous competition in a not too far future, and they should ask themselves some strategic questions, such as:
- Can we afford to stay out of these emerging markets that will make giants of our Chinese competitiors?
- Should we try to be more innovative by making a more sophisticated product or should we try to be more innovative by making the product in a more sophisticated way and by doing so, make the product cheaper and in more varieties?
- How can we harness these innovations in patents?