Shaking Grounds? Technology Standards in China

Dan Breznitz, The Scheller College of Business Georgia Institute of Technology, and Michael Murphree, Sam Nunn School of International Affairs Georgia Institute of Technology

10/01/2012
(Original Publish Date: 9/1/2012)

Napoleon is quoted as stating: "Let China sleep for when she awakes, she will shake the world." Since 2000, China seems to be living up to this prediction in the realm of high technology. Various statistics paint a picture of a world being shaken indeed. Starting at practically zero in 1990, by 2012 China annually exported over 548 billion dollars in high technology goods and services. R&D expenditure reached nearly 136 billion USD and was growing at nearly 22% per year, second only to the United States. In patenting, China was ranked third in the world by 2008 and surpassed Japan as number two in 2010. China's scientific publications have also surged, ranking second only to the United States and leading in certain emergent fields such as nanotechnology. In the realm of technology standards, China has set its sights on achieving what it thinks is its due global stature. By 2020, China should have an innovation-based economy and be a world-leading R&D power. Development of technology standards is central to these objectives. Within China, particularly in policy circles and academia, there is a pervasive belief that technology-based companies can be divided into three tiers: third-tier companies make products; second tier companies make technology; and first tier companies make standards.