[TheRealmccoy]

Provide incentives and support to local companies to become multi-unicorns (BATs etc).

These companies start investing in other leading startups, scross the globe and have substantial stakes in them.

Then, nationalise these companies and you have then indirect control/semi-control/access over vast majority of leading startups across the globe.

This seems to be a nice move by Chinese government.

[jorblumesea]

But, where does the next wave of innovation come from? More startups?

Just seems like China's steal/nationalize everything doesn't create true innovation centers.

[adrianN]

China has a billion people and produces vast and rapidly growing numbers of highly skilled academics, both in their local universities and by sending students abroad. Many of the smartest people I know are Chinese and have returned to China after completing their degrees and collecting experience in western companies.

[chillacy]

I don’t want to take a side but the parent is almost certainly going to point out that academic papers != innovation (especially with the news that lots of papers from China have falsified data, paper mills, etc).

What are actual innovations made by China in the past 20 years? On demand bikes comes to mind as one example.

[adrianN]

I'm no expert on the matter, but I hear that they have excellent supply chains and extremely flexible assembly lines.

[aembleton]

e-Cigs and consumer drones.