Entreprenuership and Innovation Insights

Entrepreneurial learning and innovation

ecosystems in China

August 2015

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Preface

China as a growing nation has seen one of the fastest developments in the modern century.

The size of the consumer market is second largest in the world and is projected to triple in size

by 2020s. The pace of change and fierce competition have lead to an increased focus on

entrepreneurialism and innovation. China is rapidly transitioning itself from a manufacturing

economy to an innovation led market in the recent years.

The sections below will detail key insights from my experience spent immersed in the midst of

the innovation ecosystem in Beijing, China and what businesses can learn from entrepreneurs

who have rapidly grown within this economy.

Annie Shu – August 2015

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Chapters

Entrepreneurial

learning in

China

3 2 1 Innovation ideas

insights and

trends

Innovation

ecosystem in

Beijing


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1. Entrepreneurial learning in China

Overseas Talent

Entrepreneurship Conference

OTEC is one of the largest start-

up events in China, the

conference begins with the

International innovation summit

of TechCrunch, followed by

international pitching of

innovation from across the globe.

The event is produced by

TechCrunch China at the

emerging hub of innovation and

entrepreneurship in Chaoyang,

Beijing.

The conference bought

together entrepreneurs from

United States, Europe,

Australia and Asia

showcasing innovation and

thought leaders from 5

different industry segments.

During the week of

conference, it attracted more

than 7000 innovators and

500 entrepreneurial teams.

OTEC is a great platform for

entrepreneurs to showcase

their innovation. It was an

opportunity to be at the

forefront of change seeing

these new ideas emerging from

the technology, health,

environmental and energy

sectors that has the potential to

revolutionise the industry.


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5 Annie Shu – August 2015

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Rapid pace in increasing

venture capital funds

Australia in comparison to

China has much lower venture

capital investment, investing in

500 or 1% of estimated 30,000

investable business of high

growth potential. China has

invested start-up capital

exceeding $57b USD.

When visiting VCs and angel

investors in Australia and

China, the typical pace of

investment in China is roughly

six times the size in Australia.

Government Investment into

Capital

Chinese government is playing

a key role in shifting China to a

more innovative economy.

Since 1980s, there has been

investments into the

development of innovation

incubators and hubs throughout

the country. Tax incentives,

monetary grants and relaxed

laws have been granted to

further encourage

entrepreneurship in China.


Competition creates ambition

and risk taking culture

Due to the competitive nature

of the Chinese economy,

entrepreneurs from China tend

to produce increments of their

idea to test out the concept and

rapidly evolve from the

reception.

A large portion of these

entrepreneurs from China come

from humble beginnings and

are highly ambitious and willing

to take risks if they sense a

pay-out on their investments.

Source:

Australian Private Equity & Venture Capital Association Limited

OTEC Investor presentations

TRIGGERS FOR INCREASED ENTREPRENEURIALISM IN CHINA

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2. Innovation ideas insights and trends

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Consumer market

Tapping into the giant

consumer market in

China

RECURRING THEMES OF INNOVATION IDEAS

PRESENTED AT THE CONFERENCE

Health and Wellbeing

Increasing awareness

and accessibility of

health aspects in

people’s lives

Energy consumption

Creating sustainable

living for households

and businesses

Gamification

Using game play to

motivate user

behaviour

Source:

Analysis from OTEC Innovation pitches Annie Shu – August 2015

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2. Innovation ideas insights and trends

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TRENDS IN THE INNOVATION PRESENTED

Mobile – Instant access

Large portion of ideas had an element of an online or mobile platform to engage directly with

customers. Examples include Wellapets, an app to teach kids in schools healthy living

combining with games that are paediatrician approved health contents.

Shared economy – matching demand and supply

There is a trend seen in the ideas pitched to include innovation sourcing demand and supply

opportunities. For example: DineIn, an Airbnb of restaurants concept, users can turn their

backyards or homes into a dining experience with people booking and paying for their meals.

The concept aims to provide a direct connection for food lovers, chefs and owners of spaces.

Big data analysis

Utilising readily available information to better inform or enhance the experience of the user.

For example: Elumin8, a light device that collects and analyses home energy data to convey a

simple information to the user to empower them to reduce their energy consumption.

Source:

Analysis from OTEC Innovation pitches Annie Shu – August 2015

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2. Top 20 innovation pitches were presented at final round

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3. Innovation ecosystem in Beijing

Innovation infrastructure

Beijing has invested consistently over many years in national innovation and has created

several modern scientific and technological infrastructure including incubator parks, universities

and research institutes.

There are now approximately 1800 innovation hubs in China, 1600 of these technology related.

Beijing has seen several districts (Zhongguancun, Sanlitun and Chaoyang) becoming central

start-up communities. Zhongguancun, being named as Beijing’s Silicon valley, innovated an

impressive average of 49 startups per day last year.

Source:

OTEC Start-up ecosystem site visit

Bloomberg Business, China’s Silicon Valley Sparking 49 Technology Startups a Day, March, 2015


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INNOVATION INCUBATOR

Case Study – TheNode

TheNode is an incubator situated in the popular

start-up space 798 of Beijing. TheNode focuses on

accepting mature start-ups that have secured

funding and development from Series A investment

round.

Dr. Gang Lu, founder of theNode, believes that life

experience is the best incubator for startups, “For

those who have really lived their lives can spot the

demands of everyday life. Entrepreneurship should

be a joyful experience and a positive life choice,

rather than a backbreaking journey.” This theme is

consistently displayed in the setting of TheNode.

Source:

OTEC Start-up ecosystem site visit Annie Shu – August 2015

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3. Innovation ecosystem in Beijing – TheNode start-up wall

12 Source:


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INNOVATION CO-WORKING SPACE

Case Study – Woo Space

One of the newest and fastest growing co-

working spaces in Beijing consisting of over

800m2 per Woo space site. There are

currently 3 Woo co-working spaces in China

with the aim of expanding to 10 new

locations by Feb next year.

Each of these locations have drawn about

two dozen Chinese startup teams to the

space including meeting facilities, co-

working desks, creative breakout areas and

innovation cafes.

Source:


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3. Innovation ecosystem in Beijing – Woo space

14 Source:

OTEC Start-up ecosystem site visit

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BILATERAL INCUBATOR

Case Study – China Australia Millennial Project (CAMP)

CAMP is a world-first bilateral incubator uniting 130 young leaders, innovators and

changemakers from China and Australia to tackle global challenges spanning 13 different

thinktanks including digital disruption, sustainable living, global talent, entrepreneurship,

infrastructure and many more.

During the course of the incubator, each of the teams were placed through modules to ideate,

build and test out the concepts. The thinktank then went into a one week accelerator where

their ideas are challenged and pitched to innovation mentors and investors.


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3. Gamification thinktank – Solving for customer’s need

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CAMP delivered 25 incredible ideas solving issues that is prevalent to both China and

Australia. During CAMP process, I was fortunate to be involved in the Gamification

thinktank tackling the question on “how can gamification foster collaboration and create

sustainable social impact?”

Thinktank Concept

Our solution is an innovative concept that uses gamification to relieve stress triggered

anxiety. In recent years, anxiety is becoming a hidden disorder in both China and Australia.

Due to the negative stigma associated with the issue, many who are suffering anxiety often

leave it untreated until it gets out of control. This has resultant impact on productivity and

wellbeing of the individual.


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3. Gamification thinktank – Solving for customer’s need

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Unxiety, an interactive platform designed specifically for young professionals in the

workplace. Unxiety assesses user’s individual circumstance to provide a tailored program

and a companion ‘friend’ allowing each participant to use game therapy to navigate

through a series of self-discovery and self-recovery adventures. The tailored program

offers a differentiated way to deal with the problem and motivate behavioural change.


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About the author

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Annie is an innovation manager at Westpac where she facilitates the innovation

mindset to businesses and individuals, enabling them to think outside the box,

provides capabilities for them to tap into opportunity areas and ideas that are

differentiated in the market to add maximum value. Prior to this role, Annie has

worked in the strategic function, finance, customer centred design, technology as

well as in institutional banking in the expansion of the Asia presence into

Singapore, China and India.

Annie Shu


Entreprenuership and Innovation Insights

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