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Sunday, September 2, 2012

Why most technology innovation often comes from the U.S and Europe but not Asia?

 An Asian student asked me: “Why most technology innovation often comes from the U.S and Europe but not Asia? Why many Asian countries have very good education systems but still not be able to innovate anything significant? How can a developing country innovate and compete? Is it possible?
Answer: In the past forty years, technology innovation has mostly happened in the U.S and Western Europe. It does not mean other countries cannot innovate but they were not successfully turned their innovations into commercial successful products. Basically, innovation is only half way, commercialization is the other half. Technology companies in the U.S or Europe have successfully created new products, services, and financial wealth for their economies because they have the right environment and business knows how. Of course, other countries are trying to copy this model but many have failed because innovation is not something that can easily be copied from one place to another. Innovation is not a product or a process as it requires radical thinking and a new mindset. It is a “seed” that has to be planted, nurtured and needs time to grow and develop. Before discussing the best way to grow the “seed of innovation”, let us look at some issues.
For many years of teaching, I found that students in western countries like in the U.S or Europe know how to work in team and most teams are doing very well. This is still an issue in Asian countries. When I taught in Asia, it took me several weeks to set up teams, even after training, almost every week I had to deal with team issues as students did not get along with each other. Team meetings were often end up in arguments, conflicts with more personal issues rather than technical issues. Imagine that a team invents a new thing. In the U.S team members know who the inventors are, and who the contributors are so the transition from new idea into a commercial product is easy without major issue. In Asian, this will probably be a battle. Every team members would claim to be the inventor and the “sole owner” of that new idea. They would fight with each other thus prevent the idea to become a commercially viable product. Unless this attitude changes, it will be difficult to nurture an environment where the “innovation seed” can be planted and grow into a healthy product.
For many years, I have observed many software companies created then failed in Asian countries. Some did not even last few months or a year as members always fought for control of the company. Unless they learn how to work together, it will be a long time for any innovation to be successful there. A consultant in Asia told me: “Teamwork is a major issue, as each individual is a “hero” and a “boss” and nobody want to work for anybody. Most of them are smart, working hard but for some reasons; they do not get along with each other. However, many are willing to work for foreigners instead. If you look at some Asian countries today, many companies have hired foreign managers, from low level supervisors to middle level managers. The owners know that their people cannot work in team unless the team leader is a foreign person.I think this issue is deeply rooted from the old education system dated back in the dynasty time where students compete for few positions. Students are taught to compete among themselves for some rewards with few winners but many losers. Unless this mind set change, it will be difficult for the society to change.
Another issue that I found often happened in some Asian countries is the “short-cut” attitude. Some people would do anything, including cheating just to get the product to the market. To them, short term profit is more important than quality. A friend told me that he had signed a large contract with an electronic company there to produce electronic component for his company. The first shipment was good and everybody was happy. After that, the quality began to slip, he had to reject 20% of components in the second shipment then 40% in the third shipment. He went back and complained to the owner about the quality. The owner said: “It is good enough, you are asking too much”. When he showed the owner bad components and sloppy manufacturing, the owner refused to give back the money. He had to return to the U.S and found another supplier for his electronic components. He told his bad experience to the newspaper and helped many companies not doing business there. He said: “Maybe it is only one company, maybe it is one person but the damage is done because of the bad reputation. In business reputation is everything, one small mistake can cost much more than people can imagine.”  Unless this attitude changes, unless quality is consider important, unless business rules are respected, it will be a long time before these countries can create quality product and compete in the global market.
Today, many Asian countries are transitioning from “agricultural phase” to “industrial phase” and to “knowledge phase” at the same time. This is a very difficult transition because each phase requires different mind sets. In Agriculture phase, quantity is more important than quality. This is probably where the attitude of “Good enough” comes from. In Industry phase, quality is very important so this transition requires a different mindset from quantity to quality. This requires trainings, especially to unskilled workers to skilled workers. That is why a good education system is a must for this transition to take place. Without a solid education system in place, it would be a very difficult transition and it may take many years. In knowledge phase, quality is essential to set the foundation for innovation. This transition requires a new thinking, new mind set, new approach to solve problem. It requires more than just trainings, it requires lifelong learning.
Today technology is changing fast and more complex. That require different way to solve problem, different thinking as no one can continue to solve more complex problems. The important factor in solving complexity is not the tools and techniques but rather the skills of the workers themselves. Quality is a collection of many attributes such as reliability, efficiency, testability, and modifiability which require intensive training. Having quality is much more than just not has defects.
To plant the seed for innovation requires significant improvement in the education system as well as the attitude of students. It is essential to improve trainings through better programs, better teachers and leadership. Schools also must change to better fit for this fast changing times as education must radically change the way students learn, it should not be for a degree or a job but for a lifelong learning for a career.
Prof John Vu 
Carnegie Mellon University
Original source:http://johnvublog.com/?p=172

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