Honolulu, July 31 :

China’s information technology (IT) industry may be a relative newcomer on the world scene but it is doing something right, and in a big way. China is now the largest exporter of IT goods, surpassing the United States - up from a world ranking of 10th in 2000.

That jump, according to East-West Centre senior fellow Dieter Ernst, is not a fluke. It signals rapid progress in China’s innovative capabilities. Ernst says in a study that China may be a latecomer to the IT world but its “opportunities to build innovative capabilities in the IT industry differ from those faced earlier by Japan and East Asian newly industrialising economies. China has a unique combination of competitive advantages that comprise a booming market for electronics products and services, and the world’s largest pool of low-cost and easily re-trainable knowledge workers.”

But, it doesn’t stop there. China has witnessed the “emergence of sophisticated lead users and test-bed markets, especially in wireless telecommunications, and concerted policy efforts at both regional and national levels to strengthen its innovation system.” Ernst points out that timing also could be an important factor.