Confucius vs. Innovation in China

In spite of the fact that China is expected to become the new powerhouse of the world economy and Asian countries like Japan and Korea are on the way of innovation economy blooming, U.S. still is the center of innovation in this world, at least in the coming decades.

Althought China’s economy booms, the development of its scientific and technological capability and innovation has until recently lagged behind its economic growth. China’s central government realised this and it had made up the 2006 “Medium- to Long-Term Strategic Plan for the Development of Science and Technology” that sets out the key objectives and priorities in science and technology. The overarching goal is to make China an “innovation-oriented” society by the year 2020 and – over the longer term – one of the world’s leading “innovation economies”. It emphasises the need to develop capabilities for “indigenous” or “home-grown innovation”. The Chinese central government also works hard on demestic economic restructuring, a shift from manufacturing to innovation-oriented economic development. China has relied heavily on technology imported from abroad, and this is one of the biggest challendge when compete in the international market, and it also can’t fuel a sustainable economic growth.

This shows the determination of Chinese central government of pushing China to become an innovative nation. But the reality is much harder than desirability.

Why?

There has been one debate about what are the factors constraint China’s innovation, a list can be made: Education, Competition, Corporate governance, Financing innovation, Intellectual property rights protection, Technological standards, Public procurement, Political system…

Well, first of all, this is more from socioeconomic perspective; secondly, look at Taiwan, Japan, Korea, they are different from China in many of the aspects above, still they have different innovation pattern from U.S. and they are not keeping up with U.S.

Then, what could be the X-factor that made China’s innovation so lagged behind? This article intends to analyze from culture perspective.

China is culturally dominated by Confucius. The core of Confucius is “仁 benevolence” and “三纲五常 the three cardinal guides and the

five constant virtues”. What does this mean? It means Inequality and Hierarchy. “There is order when the king is king, the minister is minister, the father is father and the son is son.” Confucian doctrine, however, espouses order and respect for authority. 1 To survive in the society, respecting and obeying authorities are needed.

Influenced by Confucius, there are very characteristic mindset and behaviors existing that can explain innovation pattern in China.

#1. Ownership vs. Assignment

For there to be order, people need to understand their place in society.2 Every one has positioning of self in the society and organization, boss is boss who controls everything, employee is employee who execute the job assigned by boss, no one should break this common practice. Therefore Chinese consider a job as an “assignment” other than something “Made by Me” or “Created by Me”, this is why Chinese normally don’t have sense of “ownership”. This mindset influences the way Chinese see creativity and innovation. Having no “ownership”, they don’t have motivations to create something by their own, they only do what they are told to do or what they need to do instead of being creative to do what they CAN do.

#2. Empowerment vs. Hierarchy

Westerners generally want to be empowered because it fosters the need to be independent and to “own” their jobs.3 the need to create a portfolio of their own work or achievement. For example, in the United States, a person can take credit, only for what he or she has accomplished by himself or herself without any outside assistance, that’s one way of how they get recognized in society and in the organization; while for Chinese, the social status, the rank explain what they are, and authority are seen as much more desirable considerations- even if they personally happen to find themselves near the bottom of the social order4. Class and authority seem to give Chinese people a sense of security and certainty. But to be empowered means in a particular situation they will have to make decisions where they hold duty, where they become to be in charge, this might break the order and cause great disrespect to the boss’s superior, that makes Chinese feel insecure.

1 From <Business Leadership in China- how to blend best western practices with Chinese wisdom>, by Frank T. Gallio. Chapter 10: Empowerment Vs. Hierarchy.2 Same as above.3 Same as above.4 <American culture and its impact on business> by EMAB students of Antai College of Economics & Management, SJTU

Can’t be empowered, Chinese accept to follow rules, orders, etc. docilely and they do the RIGHT thing.

#3. Blame Culture Chinese don’t like failure and they don’t take failure as something natural, failure means faceless, unhonored, weak and insecure, besides, faliure will result in blame. “For Chinese, we can be responsible for the work we do, but we usually don’t want to take on something new bacause of the fear of failure.”5 If there is something wrong and someone has got to be blamed, then it will be the person who made mistake.

Fear of failure and don’t want to blamed, Chinese rather prefer to doing what they are supposed to do.

In the social context that defined by Confucius in China, how to behave properly to be recognized as a good man by the society is primary concern for a Chinese, and Chinese only can fell secure in the situation that everyone is ensured to be in the framework and no one will break it; in stead of being creative to create or invent something new.

Since the Asian countries, like Japan, Korea are also influenced very much by Confucius, there might be no difficultied to understand why their innovation pattern are still different from U.S. although they are have similar socioecomonic macro-environment.

5 From <Business Leadership in China- how to blend best western practices with Chinese wisdom>, by Frank T. Gallio. Chapter 10: Empowerment Vs. Hierarchy.