Linked by KLU9 on Mon 19th Dec 2011 19:47 UTC
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Member since:
2009-05-23
This idea that only innovation matters and everything else is worthless is just so wrong. Innovation has become the buzzword of the decade.
The problem here is this western centric thinking. In the west you have no choice but to innovate. In Asia we still have lots of other options so innovation isn't a big priority. It's economics, basically.
In Asia we have lots and lots of cheap labour but capital is expensive and hard to come by. So if you have money in Asia you can easily earn more money by just following the safe route of setting up a factory, small store or some other tried and tested method. In the west labour is expensive while capital is cheap. So you have lots of money that you can gamble on new inventions. If you succeed people praise you as innovative. If you fail no one hears about you.
When China or any other Asian country becomes rich innovation comes naturally. All the safe methods of employing capital no longer provide the return that they used to so people start innovating. So that is why the West innovates and the East produces.