Two successful people talk about China's entrepreneurial innovation environment

Deng in Silicon Valley after the success of the venture back to China to do the VC. Zhou has been the head of Yahoo China. But the most make him famous in the river, or he in entrepreneurial innovation from the local play. The two backgrounds are different, but after a long soak in the entrepreneurial circle. Understand the excitement, impulse, distress and helplessness of entrepreneurial innovation in Chinese enterprises, and also analyze the success of America as an innovative country. At the invitation of the Chinese entrepreneur, the two made a dialogue saying: where is China's entrepreneurial innovation environment compared to the United States? Where is the cultural gene or the market environment? What is the responsibility of the investors?

Cultural genes in the creative environment

Deng: From the traditional IT industry to today's internet, China has been chasing the state of the United States, in the original technology, and the United States is still relatively far, whether it is hardware or software. In other areas, such as clean technology, the gap is relatively small.

Zhou: China's Internet environment is worse than the United States, but where is the bad? It's not clear. It is interesting to note that in the United States, such as Facebook and Twitter, many companies are swimming around it to form a symbiotic system. In China, there will certainly be many identical "Facebook" and "Twitter", copying each other.

Deng: Yes, the homogeneity of Chinese Internet companies is very serious.

Zhou: American companies are doing subtraction, very focused, and the Chinese must make the company very "plump", and finally found that everyone did the same thing. Even if a thing is created, it will soon appear many of the same, the formation of vicious competition, such as Sina Weibo came out soon, almost all the portals have built their own microblog. So it's really hard for small companies to innovate in China.

Deng: China is what you have what I have to have, the United States is what you have, I want to do a different thing with you, even if, also much better than you. In addition, on the problem of the survival of small companies, I think this to separate, small Chinese companies to make a living, in fact, than the small U.S. companies to be easier, but to grow up, more difficult than the United States. Small American companies can grow to be very big or die, while small Chinese companies are more likely to stay alive.

Zhou: Yes, like bonsai, little old trees never grow big.

Deng: Speaking of reasons, should include a lot of, the biggest problem is that we do not lack of good ideas, but can not form a big innovation, because the lack of a support for innovation and big system, including the management level of enterprises.

Zhou: I kind of disagree with you. China's innovation is difficult, it is not yet a follow-up system problem, more from the beginning does not support innovation "". Chinese people prefer big things, for small things, most of them do not agree. However, innovation must be a minority, just out of the time, it must be most people do not accept not optimistic, otherwise it is not called innovation. Chinese culture just can't contain this new life. You are not before, others to you is "perfection", after becoming, others to you is "settling down". In the United States is not the same, their culture has to seek "cool" characteristics of new and innovative things, can give more understanding and tolerance.

Deng: I add that Chinese companies are more eager to be quick. Whenever a relatively large innovation takes time, it is difficult to endure loneliness, like Twitter, Facebook, and Apple, which have been done for several years.

Zhou: In the United States, a big company CEO can go to a cool small company to serve, in China is almost impossible, must wait until you are fast, next year will be listed, will have a cow willing to come. And the American innovation culture, in fact, is a risk culture, it is more patient and tolerant of mistakes. Chinese culture is great for the United States, the losers are looked down upon, blind to the success of worship.

Deng: We do tend to have a wealth of heroes, and the media should report more innovative, even failed companies, whose failure could lead to new innovations.

Zhou: There is another reason why Chinese companies are not innovating, and it may be that China is still dealing with food and clothing, and many American entrepreneurs are trying to achieve some of their ideas and not make money, but I must be cool.

Deng: There is a point, the U.S. Internet application level is relatively high, users are more receptive to new applications. For example, the ipad sold 1 million units in the first month, and Facebook just came out a few hours ago and was used by the entire Harvard University. This encourages entrepreneurs to create new applications. In China, Internet application level is not high, for example, the United States has a lot of internet advertising technology companies, I have been looking for a long time in China, is not found. Why not make similar innovations? They say that customers do not need, I struggled to develop the CPC (cost per click, each click Costs), customers as long as CPM (thousand people cost), not so high requirements.

Zhou: Yes, that's the "Innovation Diffusion Curve", which seems to be ineffective in China. Twitter came out quickly to the end of the user, and micro-blog in China for a long time, but also are some high-end users, as if there is a ditch, can't get through. This may also lead to the rapid development of China's innovative small businesses.

Deng: In the United States, innovative small companies, in addition to growing up on the market, there is a way to go, is to sell, but in China this situation is not much.

Zhou: China's leading internet companies do not like to buy, you look at the more advanced Internet companies, they spend on the acquisition of how much money? He would think, instead of tens of millions of dollars to buy a small company, rather to dig your people, destroy your team, give a millions of on the line, not really, I find a set of people and you do the same thing , anyway, I have the flow, alive to crush you to death, this culture will lead to invest in small companies a lot of risk, so, in China, small companies are difficult to sell. I think, as long as there is Tencent, VC investment in the Internet risk is much higher. In the United States, he admits that the surgery industry specializes in admitting that people are the most valuable, so big companies would rather buy a small company's team. In this way, although the small companies did not realize the listing, but also achieved the capital exit, so that investors also have a return, this is a benign stimulus.

Deng: Why Chinese small companies are difficult to sell, there is also a reason, China has a culture, better do the chicken chickens do not do the Phoenix. Although my company is small, but I do the boss, if sold to you, is to give you a job, this mentality, but also lead to small Chinese companies big.