China's Zero Warning To The World's Top 100 Innovative Companies

Front Federal Reserve At the forum held by the Foreign Relations Association of Washington, President Greenspan said that with the continuous expansion of China's economic scale, the lack of independent innovation will become a major bottleneck. He said Thomson Reuters's survey in recent years shows that among the 100 most innovative and capable companies in the world, there are 45 in the United States, while the number in China is zero.

Greenspan spent a lot of time in the day's speech in Tucao's Chinese economy. He Tucao China's total economic volume and the rapid reduction of the United States is borrowed. He believes that China's economy depends on foreign investment and borrowed technology, which will be a hidden worry for future development. He Tucao China's independent innovation and technological innovation is insufficient, the technological progress in the economy is low, and there is no institutional change and innovation environment. "It is very difficult to think about problems outside the traditional framework to achieve innovation." Although he is sure that China is changing in the positive direction, it is too slow to say "yes".

No matter what the purpose of Mr. Greenspan's speech is, but as an old hand with a prominent position in the global economy and finance, his speech is worthy of China's reflection. Especially for technological innovation, innovation and progress, it is a warning to China.

From the point of view of production factors, there are four main elements of economic development: human resources, natural resources, capital formation, technological transformation and innovation. In the past 34 years since reform and opening up, China's economic development has relied mainly on the top three. It can also be said that the first three are crazy exploitation and utilization, and the economic growth of the base is high, and the GDP growth rate is pushed up. The most lacking and insufficient is the improvement of total factor productivity based on technological innovation and innovation. This makes human resources and natural resources, including land extensive, fishing, and huge wasteful mining. These natural resources and human resources are limited. Over exploitation and utilization will inevitably lead to economic development in an unsustainable bottleneck. The problem of China's economic development has been highlighted.

At present, the downward pressure on China's economy is bigger and bigger. One phenomenon is that market Liquidity is not lacking, capital funds are adequate, and market capital prices remain low. What does this mean? It reflects that the downward pressure on China's economy is not a problem of insufficient monetary and credit funds. It has nothing to do with money and credit funds. Where is the problem? Long term reliance on natural resources and human resources and export driven mode is unsustainable. Natural resources have been heavily dependent on imports. The high cost of production has led to the high price of commodities and suppressed market demand. There has been serious overcapacity, and the greater the waste of production and production. Labor dividends are disappearing and labor costs are rising. Exports have been pulling the economy for several years.

Under such a grim situation, we must rely on improving productivity to find new impetus to the economy. The most important index to measure GD P is productivity, that is, the ratio of total output to weighted average investment. The higher the input output ratio, the higher the gold content of G D P. There are two important variables that are labor productivity and total factor productivity. The former calculates the output per unit of labor. The higher the GDP, the higher the gold content. The latter calculates the output of each unit (including capital and labor). The higher the GDP, the greater the amount of gold.

So what do we need to improve productivity? Rely on technological innovation and innovation. In fact, the great source of potential productivity growth in Europe, North America and Japan is the endless trickle of inventions and technological innovations. This is precisely China's weaknesses and weaknesses. The number of the 100 most innovative and capable companies in the world is zero, which is a big warning. Under the current economic difficulties, it is urgent and urgent to shift economic growth to technological innovation and innovation.

No matter whether the system is "big stick" or "carrot", it is difficult to solve the fundamental problem of encouraging technological innovation and introducing new technologies. Only when the government designs a robust economic rule of law framework, effectively protects intellectual property rights, and allows wide economic freedom within this framework, will it be possible to maximize the technological level. The free market of labor, capital, products and ideas has proved to be the most fertile soil for innovation and technological change. As Greenspan said, "independent innovation is to put forward things that no one else has ever thought of." the problem is, if a society has restrictions on what you can think and discuss, it is very difficult to think outside the traditional framework to achieve innovation. Within the framework of a free market, the government can encourage new ideas and ensure that technology Effective utilization to support rapid technological progress. Policies can also influence two aspects of supply and demand simultaneously. This is the urgent need for the Chinese government to carry out the overall design as soon as possible from the institutional level.

It is urgent to create a set of institutional environment for cultivating an entrepreneurial spirit. If a country does not possess a group of entrepreneurs or managers who are willing to take risks, brave new factories, adopt new technologies and dare to introduce new management experience, it is impossible to embark on prosperity and prosperity. Fundamentally, innovation and entrepreneurship can flourish when property rights are clear and complete, tax rates are low and predictable, while others may distort profits (e.g. corruption). Some of the government's investments, such as expanding services to farmers, providing educational opportunities and training opportunities for workers, and setting up various management schools, can also help foster this entrepreneurial spirit.

We must learn from the Internet. Finance Great innovation, China's regulatory authorities, financial monopolies and individual experts and scholars gathered together to encircle and suppress and attack the profound lessons. If this kind of regulatory environment, institutional environment and social atmosphere of innovation do not change, then China's technological innovation and innovation will not come out. Changing the way of economic development and economic transformation will be empty talk. Finally, the Chinese economy will be irrevocable.