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DALIAN - Sustaining growth is one of the major concerns of business elites currently gatheredin northeast China's city of Dalian for the World Economic Forum's Summer Davos meeting.
Businessmen agreed "take innovations to the market" during the forum, which will end on Sept16. The appeal for innovation in the business and technology sectors comes at a time ofuncertainty, with the European sovereign debt crisis unnerving global markets.
"Innovation can happen everywhere: technological innovations, business innovations, financialinnovations," Dr. Jeong Kim, president of Alcatel-Lucent Bell Labs and head of Alcatel-LucentCorporate Strategy, said during an interview on the sidelines of the meeting.
Kim said he was "a bit surprised" to hear the term "disruptive innovation" being tossed aroundin China this year. The term describes a phenomenon in which a new product or technologycreates a new market and value network, eventually going on to disrupt an existing market anddisplace previous products.
Kim said he believes that China has mastered "realistic innovation" and that it will be interestingto see how China does in creating "disruptive innovation."
China plans to increase the amount it spends on scientific research and development, raisingthe amount from 1.75 percent of the gross domestic product (GDP) to 2.2 percent during the12th Five-Year Plan period (2011-2015).
Analysts say innovation is still a scarcity in many parts of China, where the economy remainslargely investment-driven.
"There is no way for China to continue using the development pattern that it has feltcomfortable using over the past three decades," Li Daokui, a monetary adviser for China'scentral bank, said at the forum.
China and other developing countries are also feeling pressure to innovate from anothersource - external uncertainties regarding the economies of the US and the European Union,according to Kim. "Crises of any type force you to think harder," he said.
Kim believes that the key to spurring innovation in China is to spend more time investing andresearching in scientific sectors. "If you don't have broad-based research, then you don't haveany options other than following or copying from someone else," he said.
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