Innovation through understanding of transferred technology in China
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As part of 02.303, The Role of Technology and Design on Growth in China, I presented this topic with the case study about China's high speed railway. Enjoy :)
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Innovation through understanding of transferred technology in China
- 1. INNOVATIONTHROUGH UNDERSTANDING OFTRANSFERRED TECHNOLOGY IN CHINA Lim Chen Pin Kenneth
- 4. WHY IS CHINA ABLETO DOTHIS?
- 5. GOVERNMENT’S SUPPORT AND NATION PLAN
- 6. China’s high speed railway https://www.youtube.com/watch?v=_j2yT5SIaDQ
- 7. WHAT IS A HIGH SPEED RAIL? Rail transport that operates faster than traditional rail and runs on dedicated tracks combined with specialised locomotives
- 9. FOREIGNTECHNOLOGYTRANSFER • Joint venture with local companies • conform to China’s standards and assemble units locally • ability to self develop next generation of trains without their partner’s involvement
- 10. RAPID DEVELOPMENT • around 200 sets made in China in just 2 years • By September 2010, trains are able to travel at 200 to 250 km/h for 2,876 km
- 11. 2. RETURNS OUTWEIGH RISKS
- 12. HISTORY OF CHINA’S HSR • World’s longest network of 16,000km track length • introduced on April 18, 2007 • 2.49 million ridership in 2014
- 14. KAWASAKI AND CSR ISSUE • ended cooperation in 2008 after 2 years into Joint venture • ability to build models without external assistance • case of over-reaction as contracts are signed between Japan and China for the venture
- 15. MULTI PROJECTS AWARDEDTO JV • 2005 - Bidding for 350km/h trains by Siemens and CNRTangShan • 2007 - 70 sets to increase transport capacity • 2008 - 400 new generation trains from Bombardier and Siemens • 2010 - announcement of “super speed” railway R&D
- 16. 3. GOVERNMENT’S SUPPORT AND FUNDING
- 17. INVESTMENT FUNDING • $22.7 billion in 2004 • $26.2 billion in 2006 and 2007. • $49.4 billion in 2008 • $88 billion in 2009. • $300 billion planned expenditure to build a 25,000 km HSR network by 2020
- 18. SIGNIFICANT COMMITMENT RISK • From 2008 to 2010, the debt-to-asset ratio increased year on year. • In 2011, the total debt of the MOR is ¥2.09 trillion, which is ~5% of China’s GDP • Wen Jiabao gave vote of confidence to the industry in late 2012
- 19. CHINA RAILWAY SPEED UP CAMPAIGN ( ) No. Year ≥ 120 km/h ≥ 160 km/h 1st 1997 1,398 752 2nd 1998 6,449 1,104 3rd 2000 9,581 1,104 4th 2001 13,166 1,104 5th 2004 16,500 7,700 6th 2007 22,000 14,000
- 20. 4. RAPID ESTABLISHMENT AS GLOBAL MARKET PLAYER
- 21. CONCENTRATED RESOURCES • Merger of country’s top train manufacturers, CSR and CNR into China Railway Rolling Stock Group • exporting technology to countries like Mexico,Thailand, United Kingdom, India, Russia andTurkey • Advantage of the combined rail and train industry capabilities for an all-in-one integrated project
- 23. INNOVATIONTHROUGH UNDERSTANDING OF TRANSFERREDTECHNOLOGY IN CHINA 1. JOINTVENTURE REQUIREMENT 2. RETURNS OUTWEIGH RISKS 3. GOVERNMENT’S SUPPORT AND FUNDING 4. RAPID ESTABLISHMENT AS GLOBAL MARKET PLAYER
- 24. MISC
- 25. OVERVIEW • History of China’s High Speed Railway (HSR) dream • Innovation and initiatives that made HSR successful in China • China’s from zero to competitor story • Challenges faced and the future of HSR
- 26. WHEELSVS MAGLEV • debate ended in 2004 with the Mid-to-LongTerm Railway Development Plan • Lower cost • no proprietary technology • safety consideration