Fanning the flames of innovation

Creativity flourishing as funding allows new ideas to become usable products

Shanghai has almost become a second home for Xie Fayan. He frequently visits the city to attend exhibitions and showcase his invention, the Guguji, a portable printer that can print messages and social media content from smartphones.

"It is always exciting to see many inventors like me bringing handy solutions to make life easier," the 26-year-old from the southern city of Xiamen says during the 2016 Consumer Electronics Show Asia, held this year in Shanghai. The event featured more than 200 exhibitors from around the world.

A man tries out a virtual reality headset at the 2016 Consumer Electronics Show Asia in Shanghai. There were more than 200 exhibitors at this year's show, which ran May 11 to 13. Provided to China Daily

"China's push for innovation and entrepreneurship is now stronger than ever, and this trend not only effects Chinese investors and consumers, but also extends the country's influence globally," says Liu Chuan, an analyst with Daoyuan Management Consultancy Ltd. "Increasing numbers of tech innovators have been bringing their projects to China to seek investments, while good-quality Chinese products have also been making their way onto the global market."

According to May data from the National Development and Reform Commission, the number of inventors and entrepreneurs in China is booming.

Last year, 14 million new enterprises were registered, up 14 percent year-on-year. In addition, 558,000 university graduates and students started businesses, up 16.9 percent year-on-year.

Angel funds in China have also surged significantly, according to the NDRC. Last year, total angel investment reached 20.3 billion yuan ($3 billion; 2.7 billion euros), three times the amount in 2014. By the end of 2015, China was home to about 3,000 venture capital funds and angel funds, with a combined capital of more than 1 trillion yuan.

"A pro-entrepreneurship policy environment, the rising numbers of funding opportunities, and the allocation of more social resources to encourage innovation are in line with China's aspirations to transform its economic growth patterns and upgrade its manufacturing and industrial sectors," says Sun Weimin, head of the information department at the Ministry of Industry and Information Technology. He is also in charge of the ministry's annual contest for manufacturers.

Sun notes that another major factor behind the growth of China's innovation sector is the support provided to manufacturers and entrepreneurs by local governments and enterprises. For example, several funds have been set up to support the innovation drive while comprehensive networks have been established to help startups find investors and incubators.

There are more than 20 incubators and industrial zones in Shanghai covering a wide range of sectors, including robotics, navigation and healthcare.

"We have held two contests for manufacturers in the past two years, and some of the award-winning projects have been introduced to enterprises that can take advantage of these innovative technologies," Sun says. "For example, a 3-D shoe-making project has been turned into a enterprise and will be heading into mass production, while another project that utilizes robotics to handle logistic tasks has been popularized in the logistics sector."

One of the new trends that manufacturers have noticed is the shift in interest toward products that are environmentally friendly. One such company at CES Asia that fits this mold is Sheedo, which is based in Barcelona and creates paper from waste cotton. The unique thing about this product is that it also has seeds embedded in it so people can plant it in the ground after using it instead of throwing it away.

"China is becoming more concerned about the environment, and it's time for Sheedo to grow here in Shanghai," says company founder Gloria Gubianas Blanes. "The business model is simple to understand; it's about turning raw materials into valuable and environmentally friendly products such as business cards, flyers, coasters, chopstick holders, and other things that can be made using paper."

Another notable project at CES Asia this year was a body temperature monitor that looks like a band-aid. Developed by a medical technology enterprise in Changzhou, the device is powered by paper battery technology and can monitor a person's temperature for up to 48 hours.

"It may be a small gadget, but there is a great demand for such devices. In China alone, more than 800 million thermometers are produced annually," says Xie Rui, a marketing specialist on the project team.

Industry experts say they expect to see more manufacturers working in teams and leveraging each other's expertise as competition heats up in the innovation scene.

Xia Junfeng, a project manager with startup incubator Nanjing Maker Space, says manufacturers need to work with other parties if they want their products to reach the commercialization stage as quickly as possible.

"It's unlikely for one individual to handle all the tasks involved, such as product design, marketing, intellectual property rights protection and fundraising, so manufacturers will need to work in teams to be more efficient and effective," he says.

"The days of being able to present an idea and secure easy funding are gone. Investors today are very savvy and demand easy-to-understand business models and good designs. Often, innovators will also need to take advantage of social media to extend the reach of their projects."

wuyiyao@chinadaily.com.cn

(China Daily Africa Weekly 06/17/2016 page27)