China is betting on scientific excellence

There are two great powers in the world. That includes both military and economic strength - and the two powers are USA and China. 

Still today USA is much stronger in its economy and also in military force, although statistics still claim Russia would be in the second place in the latter dimension - a claim shown to be wrong by Ukraine. Therefore it was interesting to read about ideas of Xi Jinping in China.

According to the article, Xi opened the Communist party meeting - where he was nominated to his third period as a president of the country - by saying that "regard science and technology as our primary productive force, talent as our primary resource and innovation as our primary driver of growth". That is: China has become to a situation, where they aim to increase their technological readiness above all other countries in the world.

Actually they have been looking for that already for quite a while. During the last years their intention has been to increase the R&D intensity by at least seven percent every year, and if that continues until 2035, it could reach the average of 2,7 percent for countries in the Organisation for Economic Co-operation and Development from the current 2.4 percent of gross domestic product. 

There are, however, obstacles in China´s way towards the leading power of the world. Russian attack to Ukraine has warned political West from relying too strictly on Chinese products, which may reduce monetary income and investments to Xi´s empire. And at the same time, restrict the spread of western innovations to China. 

Even more difficult obstacles might appear from the Chinese cultural tradition restricting criticism towards elder colleagues, which decelerates the spread of novel innovative ideas. Also the decrease of Chinese population due to former one child policy may increase burden to people in working age and cause serious instability in the society. And that would certainly affect negatively also the scientific realm. 

Despite all these obstacles, in my opinion Xi´s decision to bet on scientific excellence is wise. Even if any of the fears turns real, scientific approach is the the best option to find solutions. 

That should also be remembered in the USA, where many universities have fallen to a crisis caused by ultraliberal ideology ("wokeism") questioning even many scientific facts and demanding their replacement with politically correct beliefs. Even though the purpose of liberals may be good, they have forgotten the fact Chinese have realized: a stable, competitive and ultimately fair future can only be built on scientific truth. 

Previous thoughts on the same topic:
Does China prove the superiority of market economy?
The main consequence of Putin´s attack to Ukraine
Trump is leaving Africa

The reasons behind the fall of Nokia´s cellphone business

The main newspaper in Finland - Helsingin sanomat - wrote about a new study on Nokia company, which was made at the University of Oulu. It reported that Nokia´s cellphone business failed because of moving its production from a long-time collaboration company Elcoteq to East Asia. 

That resulted in considerable problems including a loss of quality, which led to a bankrupt of Elcoteq and loss of most European ICT jobs. Also, the close collaboration of the Nokia and its subcontactors ended as company´s relationship with Elcoteq had been highly open and mutual. 

The rules in East Asia were completely different, and Nokia never learned them well enough.

* * *

I have had many friends who have worked in Nokia company, and according to their views the company had an even bigger problem. That was its practice to provide each R&D project to two different R&D units. 

It worked nicely during the rise of the cellphone company, as competition accelerated innovation. However, later the competition between groups became more and more negative - each group trying to decelerate competitors efforts instead of speeding up their own. And that led to extremely negative atmosphere among the R&D units. 

Furthermore, Nokia did not only try to make cellphones as cheaply as possibly - that is why the subcontracting was moved to East Asia - but also R&D. Thus, its leaders did not understood that the engineers are not freely convertible. And definitely, the engineers behind the rise of the company were not mainstream of their profession but an exceptional source of innovation and passion not cheaply available anywhere. 

Thus, the R&D of Nokia halted - compared to its competitors, especially Apple - and even worse, the leaders of Nokia did not believe in phones with touchscreens even though they had been offered such a phone already in 2003 - well before Apple had its own. 

Thus, the end of Nokia cellphones was a story of misunderstandings, detrimental leadership and arrogance. Today, the company is again in rise - although not in mobile phone business - and hopefully has learned from its past failures. At least, more of its R&D is today in Europe and it is even making decent profits to its owners.

Previous thoughts on the same topic:
Microbial solution to malnutrition?
Vikings and the technological cutting edge
Voisikohan olla... (my view about Nokia during its ongoing fall - in Finnish but google translatable, year 2010)