German Business in China – Greater Shanghai Innovation Survey 2018/19
Headquarter influence challenges manufacturing companies
Headquarter influence is identified as one of the top barriers to innovation. Overall,
surveyed manufacturing companies enjoy relatively little autonomy from headquarters in
the extension or establishment of local R&D capacity, and the development of new
business models. Only 13% of respondents say that headquarter influence is “not at all” a
barrier to innovation.
Manufacturing companies increasingly engage in open innovation
90% – up from 82% in 2017 – of surveyed manufacturing companies collaborate with
external partners in doing innovation. Most popular partners today are customers and
suppliers. But companies become more open in their choice of innovation partners:
Collaboration with knowledge partners such as universities, external consultants, and
research institutes is increasing. Further, collaboration with competitors is growingly
popular. Collaboration with start-ups shows the strongest growth. While in 2017, 8% of
surveyed manufacturing companies worked with start-ups in innovation, this portion has
grown to 19% this year and is expected to reach 41% within three years from now.
Manufacturing companies restricted by government policies
The regulatory environment brings a number of limitations to the innovation capability of
German manufacturing companies in the Greater Shanghai region. Almost half of
respondents expect the new Cyber Security Law to have a negative impact on their ability
to innovate. With regard to intellectual property, a major portion of respondents is
concerned about the actual enforcement of intellectual property protection laws. Data
protection concerns and limited internet access are also among the top barriers to
innovation.
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