China now a force to be reckoned with in innovation

2012/10/09

At first sight, it is disquieting news for established industrial nations but, on closer inspection, oppor- tunities become apparent. Emerging nations and aspiring industrial nations are increasingly investing in patents and innovations. This trend is particularly prevalent in China.

About 30 years ago, China could not lay claim to a single patented invention. Nowadays, however, about 300 000 patent applications are filed in the country each year, and it is thought that China will become the world leader in terms of patent applications – ahead of Japan and the US.

The rising number of patent applications not only points to China’s growing economic strength, but also illustrates the country’s increasing capacity for innovation.

“In China , it is becoming less and less about just reproducing what has come before. The aim is to actually out- strip the traditional industrial nations, and that is in terms of innovations too,” says Bosch Rexroth executive board chairperson Dr Karl Tragl.

As a result, many mechanical engineers believe that, within a few years, a large proportion of their competitors will come from the Brazil, Russia, India and China – or Bric – grouping. 
Thanks to State sponsorship, Chinese industries, particularly the emerging strategic industries, are currently investing heavily in research and development. The current five-year plan envisages the number of applications for patents and utility models increasing to two- million a year by 2015.

For the first time, China is also promoting collaboration between private companies and government research institutions. Despite patents traditionally focus- ing more on the areas of telecommunications, information technology, alter- native energies and biotechnology, there is also a trend towards innovation in the field of mechanical engineering. A quick look at the machine tool industry highlights this change. In 2010, Chinese manufacturers produced more than 220 000 machine tools, most of which were simple and compact machines. However, these manufacturers are making increasing use of the latest computer numerically controlled automated technology and are making breakthroughs into new performance classes as a result. 
However, this development also provides new opportunities – for instance, German manufacturers can play their part in quenching the thirst for innova- tion seen in the growth markets and reap the benefits of this new trend within the context of global value-adding activities.

“In China, the highest growth rates in the field of mechanical engineering are generated by machines that carry out relatively simple processes on the same components in large volumes,” Tragl continues. “Existing control solutions are either too expensive, too complex or not accu- rate enough to meet these requirements. For this reason, we develop solutions for these markets locally, based on plat- forms developed in Germany, to create products adapted to specific regions,” Tragl explains.

“It would be impossible for us to develop such products solely from within Germany while ensuring they suit the needs of Chinese customers. “At the same time, Chinese developers would not be able to avail themselves of all the benefits of our existing platform solutions if it were not for their colleagues in Germany. Therefore, we have pooled our capacity for innovation, and can gain from the results together with local businesses.”

Rexroth is the best example of how this strategy also helps to safe- guard jobs in Germany: while sales in Germany have remained at a constant level for several years, the number of people employed in the country has increased significantly with growing sales volumes in global business.

The Bosch Rexroth group is a leading global supplier of technology and services. According to preliminary figures, more than 300 000 associates generated sales of €5.4-billion in the areas of automotive and industrial technology, consumer goods and building tech- nology in fiscal 2011. The Bosch group comprises Robert Bosch and its more than 350 subsidiaries and regional companies in some 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries.

(Source:engineeringnews)