Study: German Business in China | Page 3

German Business in China – Greater Shanghai Innovation Survey 2018/19 Foreword In terms of innovation, China took an important step in 2018. As the first middle-income economy, China has entered the world's top 20 most innovative economies in the renowned Global Innovation Index, a list compiled by Cornell University, INSEAD, and the World Intellectual Property Organization. Considering the fact that usually high-income economies lead the innovation landscape, China’s recent rise in the ranking has been spectacular. Since 2016, China has been featured in the top 25 group and has consistently climbed the rankings to be 17 th this year. What does this mean for German companies’ innovative activities in the Greater Shanghai region? Can they reap the benefits of a more fertile innovation ground and how do they cope with enhanced competition from local players, especially in a challenging regulatory environment? Since the launch of this survey in 2017 by the German Chamber of Commerce in China | Shanghai, in cooperation with Tongji University and goetzpartners Management Consultants, these questions have become even more decisive for German local business operations. As compared to last year’s study, innovation is increasingly among the top priorities of doing business in China. Clearly, this topic is of high importance. With this 2018/19 survey, we will continue to shed light on innovation behaviors in this fast-moving economy. Thanks to the participation of over 100 manufacturing companies, we can depict this year’s evolution. Following recent developments such as the new cyber security law which took effect in June 2017, we investigated regulatory issues and their impact on innovation potential. The survey will provide you with recommendations which we hope are useful for planning and fostering your innovation activities. We would like to thank all participants for their time and energy devoted to this survey. Without them, the insights on this important topic would not have been possible. We hope that you take these insights and keep the innovative spirit in this vibrant market alive. Simone Pohl Delegate and Chief Representative, Delegation of the German Industry & Commerce Executive Director and Member of the Board, German Chamber of Commerce in China | Shanghai Prof. Dr. Zheng HAN goetzpartners Chair of Innovation & Entrepreneurship Sino-German School for Postgraduate Studies (CDHK), Tongji University Yukai CHEN Partner goetzpartners Management Consultants Goetz von Steynitz Partner goetzpartners Management Consultants 2