China's new 5-year plan is all about innovation. Check out this package of stories on innovation in China.
Beijing is putting huge resources into making the country an innovation powerhouse in the decade ahead. Good thing. Wages are soaring all along the coast, with compensation for managers, professionals, scientists--and manufacturing employees rising by double-digits every year. Already low-value manufacturing is leaving China for Vietnam and elsewhere. One key factor is demographics--that one-child policy is causing a dearth of workers along the coast. The other reason, of course, is demand. China's economy is booming and the demand for blue and white-collar labor is off the charts. China needs to innovate to get to the next level.
Beijing is leading a state-sponsored, macro-economic effort to get to that level. India is taking another path, a micro-economic push to develop. Which is the better path?