Shah / Gao / Mittal Innovation, Entrepreneurship, and the Economy in the US, China, and India

Historical Perspectives and Future Trends
1. Auflage 2014
ISBN: 978-0-12-801865-1
Verlag: Elsevier Science & Techn.
Format: EPUB
Kopierschutz: 6 - ePub Watermark

E-Book, Englisch, 416 Seiten

What drives innovation and entrepreneurship in India, China, and the United States? Our data-rich and evidence-based exploration of relationships among innovation, entrepreneurship, and economic growth yields theoretical models of economic growth in the context of macroeconomic factors. Because we know far too little about the key characteristics of Chinese and Indian entrepreneurs and the ways they innovate, our balanced, systematic comparison of entrepreneurship and innovation results in a new approach to looking at economic growth that can be used to model empirical data from other countries. The importance of innovation and entrepreneurship to any economy has been recognized since the pioneering work of Joseph Schumpeter. Our analysis of the major factors that affect innovation and entrepreneurship in these three parts of the world - US, China and India -provides a comprehensive view of their effects and their likely futures. - Looks at elements important for innovation and entrepreneurship and compares them against each other within the three countries - Places theoretical modeling of economic growth in the context of the overall macroeconomic factors - Explores questions about the relationships among innovation, entrepreneurship and economic growth in China, India and the US

Dr. Rajiv R. Shah is a Clinical Professor with the Naveen Jindal School of Management at UT Dallas since 2008, and is also the Founder and Program Director for the Systems Engineering and Management (SEM) Program. At UT Dallas he teaches Innovation and Entrepreneurship, Corporate Entrepreneurship and Venturing, Technology and New Product Development, as well as Quantitative and Numerical Methods in Finance and Macroeconomics. He specialized in solid state and laser physics, and quantum electronics and non-linear optics, and prior to joining UT Dallas, he spent close to 30 years in industry working in areas that spanned - lasers, semiconductors, computers, and wireless, optical and internet communications. He co-founded and is a Managing Partner at Timmaron Capital Advisors, a firm that provides advisory services to CEOs, BoDs, and PE firms. He also founded The indusLotus Group and provided high-level consulting to private equity firms and others on Wall Street. He worked on a $50 B telecom deal in 2007. He has been an advisor to Cerberus Capital LP, Pioneer Natural Resources, Ericsson Inc., Commscope Inc., Goldman Sachs Vantage Marketplace LLC, Nomura Securities' Private Equity Arm, a Council Member on the Gerson Lehrman Group (GLG), a number of other Private Equity and Hedge Funds, as well as three separate engagements with McKinsey & Co. He has also worked as an evaluator and mentor with the Texas Emerging Technology Fund and STARTech, reviewing business plans and mentoring founders and CEOs. Dr. Shah has served as CTO of Alcatel North America, and was VP of Research & Innovation and Network Strategy at Alcatel for four years. Prior to that he held senior management positions at MCI Worldcom over a five year period, and was involved in half-a-dozen corporate-level M&A due diligence activities. Before that he worked for Texas Instruments for seventeen years in various capacities, including R&D, manufacturing, business start-up, and business strategy and business development. He served for two years on the faculty of the California Institute of Technology (Caltech) as Dr. Chaim Weizmann Post-Doctoral Research Fellow. He has an M.S. and Ph.D. in Electrical Engineering from Rice University, specializing in Applied Physics, an Executive MBA from Southern Methodist University, and a B.Sc. in Physics, Mathematics and Statistics from Ferguson College, University of Pune, India, where he was the recipient of the National Science Talent Search Fellowship from the Government of India. Early in his career he published over fifty papers in peer reviewed journals, such as those of the American Physical Society (APS) and the Institute of Electrical and Electronic Engineers (IEEE), and others, and had over twenty-five US and international patents issued to him.

Autoren/Hrsg.

Shah, Rajiv

Gao, Zhijie

Mittal, Harini

Inhaltsverzeichnis

1;Front Cover;1
2;Innovation, Entrepreneurship, and the Economy in the US, China, and India: Historical Perspectives and Future Trends;4
3;Dedication;3
4;Copyright;5
5;Contents;6
6;Preface;12
7;Introduction;16
7.1;References;20
8;About the Authors;22
9;Acknowledgment;24
10;Part I: Innovation;26
10.1;Chapter 1: Innovation;28
10.1.1;What is Innovation?;28
10.1.2;Why is Innovation Important?;29
10.1.3;Factors Contributing to Innovation;30
10.1.4;References;20
10.2;Chapter 2: History;34
10.2.1;The United States;35
10.2.2;China;36
10.2.2.1;The Feudal Period (221 BC-AD 1911);36
10.2.2.2;The Republic of China (1912-1949);40
10.2.2.3;The People's Republic of China (After 1949);41
10.2.3;India;47
10.2.3.1;Ancient Indian Period (4000 BC-185 BC);47
10.2.3.2;Indus Valley Civilization or the Bronze Age (4000 BC-1900 BC);48
10.2.3.3;Vedic Period (1700 BC-500 BC)3;48
10.2.3.4;Mauryan Empire (321 BC-185 BC);49
10.2.3.5;Medieval Period (100 BC-AD 1600)5;49
10.2.3.6;Limitations of Indian Science, Technology, Innovation, and Entrepreneurship8;51
10.2.3.7;1750-1947: The Period of European Dominance9;52
10.2.3.8;Postindependence and Prereform Period: 1947-1990;56
10.2.4;References;20
10.3;Chapter 3: Economy;64
10.3.1;Economic Growth;64
10.3.2;R&D Expenditures;67
10.3.3;FDI Inflows;71
10.3.4;FDI Outflows;73
10.3.5;Patents;74
10.3.6;References;20
10.4;Chapter 4: Culture;80
10.4.1;Power Distance and Bureaucracy;80
10.4.2;Collectivism or Individualism;82
10.4.3;Uncertainty Avoidance;83
10.4.4;Cultural Openness;84
10.4.5;Acceptance of Change;85
10.4.6;Opinion About Achievement;86
10.4.7;Masculinity or Femininity;87
10.4.8;Challenges for the United States: Recent Cultural Evolution of the United States;88
10.4.9;References;20
10.5;Chapter 5: Laws, Rules, and Role of Government Institutions;92
10.5.1;Intellectual Property Rights;93
10.5.1.1;United States;93
10.5.1.2;China;95
10.5.1.3;India;97
10.5.2;Tax Policies for Promotion of Innovation and Entrepreneurship;100
10.5.2.1;United States;100
10.5.2.2;China;101
10.5.2.3;India;104
10.5.3;Government Procurement to Promote Innovation and Entrepreneurship;105
10.5.3.1;United States;105
10.5.3.2;China;106
10.5.3.3;India;107
10.5.4;Scientific and Technological Plan;108
10.5.4.1;United States;108
10.5.4.2;China;110
10.5.4.3;India;111
10.5.5;International Innovation System;118
10.5.6;The Influence of Rent-Seeking and Corruption;118
10.5.6.1;China;119
10.5.6.2;India;120
10.5.6.3;United States;120
10.5.7;References;20
10.6;Chapter 6: Demographics;126
10.6.1;References;20
10.7;Chapter 7: Education and Universities;140
10.7.1;Education Expenditures;140
10.7.2;Institutions and Universities;142
10.7.3;Content of Education;148
10.7.4;Different College Entrance Exams;151
10.7.5;Differences in Relationship Between Teachers and Students;153
10.7.6;Different Relationships Between Administrative Staff and Teachers;154
10.7.7;Challenges for the United States;156
10.7.7.1;The K Through 12 Education System;156
10.7.7.2;The 2- and 4-Year Colleges and Universities and the Graduate School System;157
10.7.8;References;20
10.8;Chapter 8: Industry and Market Structures, Industry and Regional Clusters;160
10.8.1;Industry and Market Structures: The United States;161
10.8.2;Industry and Market Structures: China and India;163
10.8.3;Industry Clusters;175
10.8.3.1;The United States;175
10.8.3.2;China;175
10.8.3.3;India;181
10.8.4;References;20
10.9;Chapter 9: Opportunity Areas for Innovation;186
10.9.1;China;186
10.9.1.1;Challenges China Faces;186
10.9.1.1.1;A Large and Widening Gap Between the Rich and the Poor;186
10.9.1.1.2;Aging Population;188
10.9.1.1.3;Urbanization;188
10.9.1.1.4;Pressures to Transform the Manufacturing Sector;189
10.9.1.1.5;Energy Problem;190
10.9.1.1.6;Environmental Pollution;191
10.9.1.2;Addressing Unmet Needs in China;191
10.9.2;India;196
10.9.2.1;Addressing Unmet Needs;198
10.9.3;The United States;199
10.9.4;References;20
11;Part II: Entrepreneurship;206
11.1;Chapter 10: Entrepreneurship;208
11.1.1;What is Entrepreneurship?;208
11.1.2;The Entrepreneurial Process;209
11.1.3;Entrepreneurship: New Ventures;210
11.1.4;Factors Contributing to Entrepreneurship;212
11.1.5;References;20
11.2;Chapter 11: Personal Characteristics;216
11.2.1;Innovation Ability;216
11.2.2;Propensity for Risk-Taking;218
11.2.3;Internal Locus of Control;219
11.2.4;Value of Achievement;221
11.2.5;References;20
11.3;Chapter 12: Social and Cultural Factors;226
11.3.1;Power Distance;227
11.3.2;Social Relations;227
11.3.3;Family Culture and Level of Trust;229
11.3.4;Acceptance of Failure;232
11.3.5;References;20
11.4;Chapter 13: Entrepreneurial Training;234
11.4.1;Relevant Education;234
11.4.1.1;The United States;234
11.4.1.2;China;235
11.4.1.3;India;237
11.4.2;Relevant Training and Consultation Services;238
11.4.2.1;The United States;238
11.4.2.2;China;239
11.4.2.3;India;239
11.4.3;References;20
11.5;Chapter 14: External Environment;242
11.5.1;The Free Market Economy and Competitive Environment;242
11.5.1.1;The United States1;242
11.5.1.2;China;244
11.5.1.3;India;247
11.5.1.4;Employment Situation;253
11.5.2;Supportive Laws;257
11.5.2.1;The United States;257
11.5.2.2;China;259
11.5.2.3;India;260
11.5.3;References;20
11.6;Chapter 15: Infrastructure;264
11.6.1;The United States;264
11.6.2;China and a Comparison with the United States;265
11.6.3;India;271
11.6.3.1;Roads;273
11.6.3.2;Railways;275
11.6.3.3;Airports;275
11.6.3.4;Ports;276
11.6.3.5;Energy;276
11.6.3.6;Urban Infrastructure;277
11.6.3.7;Telecommunications;277
11.6.3.8;Internet;277
11.6.4;References;20
11.7;Chapter 16: Capital Availability;280
11.7.1;Sources of Business Financing;280
11.7.2;The United States;281
11.7.2.1;Financial Support from Government;281
11.7.2.2;Venture Capital;282
11.7.2.3;Stock Markets;286
11.7.2.4;Debt Market;288
11.7.3;China;288
11.7.3.1;Venture Capital;288
11.7.3.2;SME Board;289
11.7.4;India;289
11.7.4.1;Equity Demand;292
11.7.4.2;Debt Demand and Supply;292
11.7.4.3;Angel Investing and VC;293
11.7.4.4;Exits of VC and Private Equity (PE) Investments;294
11.7.4.5;SME Exchanges;294
11.7.5;References;20
11.8;Chapter 17: Intrapreneurship;298
11.8.1;The United States;301
11.8.2;China;303
11.8.2.1;Case1: Intrapreneurship at Huawei (Wubao and Rongwei, 2011);304
11.8.2.2;Case2: Intrapreneurship at Giant Network Corporation (Liping and Naiqiu, 2010);305
11.8.2.3;Case3: Intrapreneurship at China Telecom (Jiangtao and Haowei, 2012);306
11.8.3;India;307
11.8.4;References;20
12;Part III: Impact on the Economy;316
12.1;Chapter 18: Impact on the Economy;318
12.1.1;Role of Innovation and Entrepreneurship in the Economy;318
12.1.2;Economic Growth;318
12.1.3;References;20
12.2;Chapter 19: General Macroeconomic Framework;326
12.2.1;References;20
12.3;Chapter 20: An Economic Model;332
12.3.1;A Model for Economic Growth with Innovation and Entrepreneurship;332
12.3.2;References;20
12.4;Chapter 21: Entrepreneurship Indices Relevant Macroeconomic Data;342
12.4.1;GEDI Data;343
12.4.2;Data from the Heritage Foundation;343
12.4.3;References;20
13;Part IV: Conclusions;356
13.1;Chapter 22: Conclusions and Thoughts about the Future;358
13.1.1;Innovation Defined, Importance of Innovation, Factors Contributing to Innovation;361
13.1.2;History;361
13.1.3;Economy;362
13.1.4;Culture;362
13.1.5;Laws and Rules and Role of Government and Institutions;363
13.1.6;Demographics;364
13.1.7;Education and Universities;365
13.1.8;Industry and Market Structures, Industry and Regional Clusters;365
13.1.9;Opportunity Areas for Innovation;366
13.1.10;Entrepreneurship;367
13.1.11;Personal Characteristics;367
13.1.12;Social and Cultural Factors;367
13.1.13;Entrepreneurial Training;368
13.1.14;External Environment;368
13.1.15;Infrastructure;369
13.1.16;Capital Availability;369
13.1.17;Intrapreneurship;370
13.1.18;Impact on the Economy;371
13.1.19;References;20
14;Appendix 1;376
15;Appendix 2: Innovation Data;390
15.1;Data from Global Innovation Indices for Various Subindices;390
16;Index;402

Leseproben

Introduction
The book is divided into four parts. Part I, Chapters 1 through 9, focuses on innovation; Part II, Chapters 10 through 17, on entrepreneurship; and Part III, Chapters 18 through 21, on the impact on the economy, and in Part IV, the fourth and last part, Chapter 22, we close with conclusions and our thoughts about the future of innovation and entrepreneurship and the resultant economic growth in these parts of the world. We begin Part I with Chapter 1 discussing what innovation is, since this is a term that has come to mean a lot of different things to a lot of different people. Since the entire first section of the book is devoted to innovation and the role of innovation, we define how we use the word innovation in our book. We also then discuss why innovation is important in any economy, and finally, we list the factors that we believe are important contributors for innovation to thrive. We further lay the groundwork for the first part of the book in this chapter by briefly comparing and contrasting general innovation trends in the United States, China, and India over the last few years using innovation indices and subindices of the United States, China, and India computed by INSEAD and WIPO. In Chapter 2, we discuss the role that history plays in innovation. We look at historical GDP in China, India, and the United States and how the roles have reversed in the last couple of centuries. We believe that having had a history of innovation does provide a perspective on the intrinsic nature of a culture and its people and a potential proclivity towards reverting to that behavior under the “right circumstances.” We, therefore, trace the role of technology and innovation in the phenomenal rise of China and India in the distant past and examine the factors that obstructed innovation in later years, which resulted in the subsequent decline of these economies. We then briefly compare that to the history of innovation in the United States. While a lot has been written about the latter and is fairly well known, not much has been written about or known in the West about the history of innovation in China and India. So, we first examine that history. Among the “right circumstances” that encourage innovative behavior, one of the most important factors is the economy. The three key measures of economy that impact technological innovation are R&D expenditures, foreign direct investment and its impact on the flow of knowledge and technology, and the quantity and quality of intellectual property. In Chapter 3, we discuss these topics for China and India and trace their evolution and effect through time and compare these to the United States. Even if a country has a history of innovation in the past and an economy that is growing rapidly, it may not have the social and cultural factors that encourage the spirit of innovation. This is an area that particularly may bring out the contrast between Western societies, such as the United States, and China and India. In Chapter 4, we delve into this topic and explore whether there are winds of change in Eastern cultures that might foretell a different future from that of the past. In Chapter 5, we explore the role of government and other institutions and the infrastructure of laws and regulations and their impact on creativity and innovation. We discuss how these may have evolved over the years in China and India and how they compare with those in the United States and the impact these are having on innovation today and potentially in the future. In any developing or emerging economy, especially India and China, the presence of corruption and a significant size “parallel economy” is well known. What impact does that have on innovation? It is commonly known that creativity and innovation are at their highest levels in a person's life during youth, and so is productivity. It is, therefore, important to understand how demographics, in general, and its quality in terms of level of education are evolving and changing in all these three regions of the world. The onset of an aging population and the resultant influx of immigrants in the West, and the United States in particular, are well known. China, on the other hand, is also beginning to face the problem of an aging population although, to a smaller extent, partly caused by its restrictive population growth policies, whereas India is forecast to have one of the youngest populations in the years to come. Chinese and Indian immigrants in the United States who were once considered a brain drain from these countries are now playing a significant role in driving innovation in China and India. In Chapter 6, we explore these issues and the impact this may have on the future of innovation in these countries. In this advanced information economy, innovation requires a population that is technologically sophisticated. Hence, the role of schools and universities and the education they provide are very important. In Chapter 7, we explore how that is changing in China and India and contrast that to what is happening in the United States. We then examine the role of industry and market structures, as well as regional clusters that seem to play an important role in innovation. In the United States, regional clusters in the Silicon Valley in the Bay Area and Boston's Route 128 are of legendary prominence. From an industry and market cluster perspective, we have seen the shift in the United States from innovation in traditional industries to the more technology- and software-oriented industries, as well as biotechnology, nanotechnology, pharmaceuticals, and energy. We discuss in Chapter 8 these factors in China and India and compare them with those in the United States. While innovation is most prevalent in the United States in recent years, in the sectors discussed in the previous chapter, innovation in China and India may be driven more by local factors and conditions relevant to those economies and societies. This thinking has recently spawned the notions of “innovation at the bottom of the pyramid,” as well as “reverse innovation.” The latter concept talks to innovating in developing and emerging markets to meet their cost and price points, and then, for comparison, we also discuss the areas that have a need for innovation in the United States. We deliberate on these issues in Chapter 9. We begin Part II of the book and switch to the concept of entrepreneurship in Chapter 10. We begin by again defining what we mean by entrepreneurship, given the plethora of definitions since the early work of Joseph Schumpeter, and discuss how that is different from innovation. We discuss briefly the entrepreneurial process that results in the creation of new ventures and then talk about the factors that drive entrepreneurship. In Chapter 11, we discuss the general business environment in the three countries and the personal characteristics that are necessary for entrepreneurial behavior. Personality traits such as the ability to spot opportunities and innovate, propensity for risk taking, achievement orientation, and an internal locus of control, among others, are conducive to entrepreneurship. We examine the personality traits of the people in the United States, China, and India and assess what role they play in the dynamics of entrepreneurship in these countries. We then revisit social and cultural factors in Chapter 12, however, this time in the context of entrepreneurship. Here, again, there is a strong contrast between the US and the Eastern cultures of China and India. We discuss what impact this has on entrepreneurship. However, with a global economy, ease of travel, exposure to Western ways of thinking and working in this information age, and a growing middle class once again suggest things may be starting to change. We address the role of education, in general, and entrepreneurial education, in particular, in contributing to the success of entrepreneurial endeavors in Chapter 13. Most entrepreneurs and academics in the field of innovation and entrepreneurship know that a good idea alone does not make a new venture. It takes a lot more than that. Entrepreneurship, as discussed earlier, is a process. Some people have the natural instincts to learn this along the way, very often the hard way through experience. For the vast majority, education in entrepreneurship can facilitate the process of launching new ventures. We look at the availability of this education in China and India and compare it to that of the United States. In Chapter 14, we discuss some of the other key ingredients conducive to entrepreneurial activities. We group them under “external environment” and include within that factors such as legal, political, and institutional environments. Besides, the state of labor markets has a close link with the type of entrepreneurship prevailing in a country—the types of entrepreneurship in terms of whether it is necessity-driven or opportunity-driven. We look at...