Feeds

Move over Silicon Valley, the Chinese are coming

KPMG report says PRC will be innovation leader by 2016

Providing a secure and efficient Helpdesk

Over 40 per cent of technology leaders think that Silicon Valley will be supplanted by China as the world’s leading tech innovation hub, according to a new report from KPMG.

The consultancy interviewed hundreds of tech execs from start-ups to multi-nationals across the globe and found that 44 per cent believe China will replace Silicon Valley, with the tipping point coming as early as 2016.

India got 22 per cent of the vote as “most likely new Silicon Valley” followed by Japan and South Korea.

“The key takeaway from this survey isn’t that Silicon Valley is becoming less of a force, but that other areas of the world are becoming important technology innovation hubs,” said KPMG partner Gary Matuszak.

The report will be music to the Communist Party’s ears as it tries to achieve a recent goal to transform the People’s Republic an “innovation-oriented country” by 2020 and a “world technological power” by 2049.

Yet despite boasting some big name global tech firms such as Lenovo and Huawei, Chinese firms are sparsely represented in the report’s table of “top companies driving disruptive innovation”. Apple was way out in front with 37 per cent, while Google (23 per cent) and Microsoft (15 per cent) rounded out the top three.

Lenovo was the only ranked Chinese firm, coming in fifth place with 11 per cent of the vote.

However, one area where China is leading, and innovating, is cloud computing.

The Asia Cloud Computing Association last year revealed the Chinese government is set to invest $154 billion to grow the industry and has ascribed five Cloud Computing Service Innovation Pilot Cities to help lead the way.

EMC’s president of Greater China, Denis Yip argued back in June that the country is leading the world in cloud deployments – helped by the fact that most organisations don’t have the 50-60 years of legacy systems holding them back that US and European firms have to deal with.

The Silicon Valley Bank certainly thinks there's potential in the PRC, having announced a joint venture with Shanghai Pudong Development Bank (SPDB) which will see it lend to local start-ups. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.