China's Next Strategic Advantage

China's Next Strategic Advantage

From Imitation to Innovation

By George S. Yip and Bruce McKern

A book for everyone who does business with China or in China.





A book for everyone who does business with China or in China.

The history-making development of the Chinese economy has entered a new phase. China is moving aggressively from a strategy of imitation to one of innovation. Driven both by domestic needs and by global ambition, China is establishing itself at the forefront of technological innovation. Western businesses need to prepare for a tidal wave of innovation from China that is about to hit Western markets, and Chinese businesses need to understand the critical importance of innovation in their future.

Experts George Yip and Bruce McKern explain this epic transformation and propose strategies for both Western and Chinese companies. This book is for everyone who does business with China or in China, or is interested in the development of the world's fastest-growing economy. Western CEOs can learn from Chinese companies and can create an effective innovation process in China, for China and the world. Chinese CEOs can benefit from understanding the strategies of their peers as they strive to enter foreign markets. And all Western businesses should prepare for disruption from their new competitors.

Yip and McKern provide case studies of successful firms, outline ten ways in which the managerial and innovative capabilities of these firms differ from those of Western firms, and describe how multinationals doing business in China can become part of the Chinese ecosystem of new knowledge and technology. Yip and McKern argue that these innovation capabilities will be the basis for creating world-class products and services to meet the challenges of a new era of global competition.


Out of Print ISBN: 9780262034586 304 pp. | 6 in x 9 in 18 figures, 2 tables


$19.95 T ISBN: 9780262534758 304 pp. | 6 in x 9 in 18 figures, 2 tables


  • Yip and McKern deliver a comprehensive and insightful study of innovation in China that should challenge business leaders to think carefully about how to benefit from China's growing expertise. As China's capacity for innovation continues to develop rapidly, the authors provide an important reminder: China's market is not just too big to ignore, but now offers companies that are willing to engage in the market essential learning that will help them remain competitive for years to come.

    John Browne

    Chairman of Huawei UK and L1 Energy; former CEO of BP

  • George Yip and Bruce McKern have created a crucial guide for business success in China as this world-leading economy executes a once-in-a-generation economic transition. Their insights mesh well with what Dow has learned over decades of experience in China: that the key to business growth lies in local collaborative innovation, creating sustainable solutions for the Chinese market that can be leveraged around the world.

    Andrew N. Liveris

    Chairman and CEO, The Dow Chemical Company

  • This book describes the next phase in China's development as a leading global country—a phase in which next to manufacturing and export, a model based more on domestic consumption and services, and strongly driven by innovation, is emerging. It is a must-read for anyone interested in the challenges this new era of global competition generates.

    Feike Sijbesma

    CEO, Royal DSM

  • Yip and McKern have written an eye-opening book about the startling growth of innovation in Chinese companies. Using hundreds of cases, they leave no doubt that China is now a major force in innovation with an increasing global reach. The case that engagement with the Chinese system is essential for business success in the coming decades is compelling.

    A. Michael Spence

    Nobel Laureate in Economics, 2001