Competitiveness report shows China remains global innovation powerhouse

GENEVA - The inaugural "China Company Competitiveness Indicator" published Monday by the world-renowned International Institute for Management Development (IMD) reflects the country's thriving digital technology landscape and its leading role as a global innovation powerhouse, said the IMD China CEO.

The first "China Company Competitiveness Indicator" is an initiative launched by IMD China that measures on a sector-by-sector basis how competitive companies are in the Chinese market.

It found that among 23 firms in the food and beverage sector (F&B), Kweichow Moutai ranked first, The Coca-Cola Company second, and China Mengniu Dairy Company third.

"The top performers in the F&B sector are the ones that are really good at staying resilient in their core business while at the same time preparing themselves for the future," Mark Greeven, professor of Innovation and Strategy and CEO of IMD China, who directed the group that conducted the research, told Xinhua in a video interview.

"There is also a lot of diversity. We have companies from very traditional backgrounds, such as liquor, dairy, snacks, or soy sauce, becoming really strong and ranking very high in our indicator."

Greeven also noted that a mix of domestic and foreign companies are top-performing ones in the Chinese market.

According to IMD, the results are based on hard data and consider eight main factors: business success, business robustness, investors' expectations of future growth, research & development efforts, early innovation results, business diversity, customer engagement, and environmental, social, and corporate governance (ESG).

Greeven also highlighted China's role as a driver for global competitiveness and innovation.

A lot of domestic companies in China are real innovation powerhouses and China's role in innovation can "no longer be ignored," Greeven said.

"Whether it is inside China, or outside China, we can learn a lot from the innovation landscape and ecosystem in China. I hope that this becomes a driver of growth for multinationals. I'm very, very optimistic about that," he added.

Greeven emphasized that for foreign multinational companies, "finding inspiration and collaborating with local domestic companies" will be key to their success and help them tap into China's innovation power.

"What we can learn from some of the Chinese innovators is the concept of autonomy to the front line: getting as close as possible to the consumer and the customer."

Speaking of the key industries in which multinationals and foreign companies should invest in China in the future, Greeven said that the best industries to invest in China are those related to retail.

"But of course, industries like healthcare, automotive, mobility, and sustainable technology are the top investment areas," he added.

Greeven said in the last couple of years, innovation investment in China by both domestic and foreign companies has been increasing. "We have a very interesting and important innovation link that connects us all across the world," he said.

Founded by business executives, IMD is an independent academic institute based in Lausanne, Switzerland, and Singapore. It opened a hub in Shenzhen, China in January 2023.