The Needham Puzzle Reconsidered: Organizations, Organizing, and Innovation in China

Abstract

This paper discusses some aspects of innovation in China. As China seeks to transition to a knowledge-based economy, it may become more important for China to develop innovative technologies to sustain economic growth. How do China's history, culture, institutions, and organizations aid or hinder innovation? How does China's national innovation system compare to the innovation culture in the US, as well as other developed and emerging economies? What are the prospects for the future of the Chinese national innovation system?Our starting point is the Needham Puzzle -the paradox that while China was once a world leader in technological development, it fell behind; the Industrial Revolution happened in Europe rather than in China. Potential explanations for the Needham Puzzle may shed light on the challenges facing innovation in modern China. We identify three factors that might help explain the Needham Puzzle; assess how the Needham Puzzle and Chinese culture and history have affected the modern innovation system; discuss comparative aspects of innovation ecosystems in the United States and elsewhere; and suggest that Chinese innovation emphasizes exploitation and refinement of existing knowledge to the exploration and development of new knowledge. We also discuss implications for the future of innovation in China.

Historical and Cultural Obstacles to Frame-Breaking Innovations in China

“…We agree with Augier et al (2016) that in China frame-breaking innovations are limited because of the relative prevalence of exploitation, imitation, and refinement of existing technologies versus exploration and development of new knowledge. However, it is premature to conclude that the Chinese do not value radical innovation.…”

“…Unlike Augier et al (2016), we posit that thinking style and the hegemonic influence of Confucianism cannot explain why China lost its leadership role in innovation in late 1500s. It is not entirely true that China never developed logical thinking that supports creation of scientific knowledge.…”

“…Today, frame-breaking innovations are more likely to originate from European and North American countries than from China. In the perspective article (Augier, Guo, & Rowen, 2016), the authors attribute this phenomenon, which is often referred to as the Needham Puzzle, to three reasons: (1) the Chinese did not develop a scientific method like that in the West; (2) lack of educational diversity and structural inertia in China; and (3) lack of openness to the outside world. The authors also attribute the US's leadership in innovation to its culture of encouraging experimentation, tolerating failure and accepting deviance, and to its institutional support for decentralization of and competition in R&D and basic research.…”

Technological Innovation Research in China and India: A Bibliometric Analysis for the Period 1991–2015

“…While we did recognize this possibility in places (for example, in connecting with macro-economic trends related to the dot-com boom), there is scope to study these relationships further. A recent study, for instance, looked at the historical reasons to explain the challenges facing innovation in China (Augier, Guo, & Rowen, 2016).…”

Guanxi influence and talent management in Chinese organisations; evidence from the real estate sector

“…As China seeks to transition to a knowledge-based economy, many aspects of management become more important (Zhu and Warner 2005;Ma and Trigo 2008) within China and for those affected by China not just as a manufacturer or investor but also as an innovator (Augier, Guo and Rowen, 2016). One such aspect is the strategic management of people (Chen, Friedman, Yu, and Sun, 2011) and Talent Management (TM).…”