As we talked about innovation and technology,we will straight away think of the success stories of the American start-up companies from Silicon Valley, such as the Microsoft, Apple,Dell or Google etc.Now the question arise is that why Asia is lagging behind in innovation?
Professor Clayton M. Christensen of the Harvard Business School had changed the way we think of the innovation in technology since 10 years ago. With his now a classic study "The Innovator's Dilemma", Christensen recognized that only few technologies are intrinsically disruptive. Rather, it is the business model or the strategy, that is disruptive.
This insights had provided us a very clear clue to the understanding of why the innovation is lagging in Asia.
When Asian Companies were trying to sell their products to the America or the European countries, the expectation is that our product quality is inferior. The white people is expecting that our products to be of low price or low quality.
Let us use the Taiwan's Acer as an example to illustrate our point here. As we acknowledged, 90% of the world's PC (personal computer)components were coming from Asia. Yet the Acer still can not be Hewlett-Packard (HP).The easy availability and the low price of the PC components still can not give the competitive edge to the Acer over the HP.
Another example is that the Sony from the Japan and the Samsung from the Korea. Both are the recognized , successful and leading Asian brand names. However, both Asian companies can not come out with products as the like of the iPOD which had been sold out for more than 1.5 millions units, until to date, across many countries of the world. This single particular innovative product had itself been contributing billions of dollars in profit to Apple Corporation.
So, now another question arise of what has drive the US to be a world leader in innovation and technology for decades since the mid 20th century ago.
In US, there is the entrepreneurship culture which promotes innovation and disruptive change. And this entrepreneurship culture is being fueled by a synergistic convergence forces of :- venture capital, research universities and the risk taking culture.
As for Asia, the barrier to creating the entrepreneurship culture are both institutional and cultural. Let us dissecting a challenging landscape of dilemma facing the Asia countries currently:
Firstly, Asia lacks a critical mass of independent venture capital groups, which are essentially required to support a significant numbers of start-up companies.
Secondly, the Asian research universities are far lagging behind those in US like Stanford University and Massachusetts Institute of Technology (MIT).
Last but not foremost, perhaps, the biggest impediment is the fear : the fear to risk failure.
In US, the failure can be seen as a good thing, a badge of honor and the entrepreneurs will try it again and again. While in Asia, apparently, the failure is often being seen as a bad thing.
As a conclusion, by avoiding the risk of failure in innovation, the Asia is definitely risking itself towards long term economic failure.
As in the future, the innovation will play key element to drive for the sustainable growth of the economy in the particular country of the world.