Editorial: Keep an eye on China's talent pool

Who is right about China's innovative capacity: the optimists or the pessimists? The answer is neither because they are looking in the wrong direction.

by Morice Mendoza, editor, World Business
Last Updated: 23 Jul 2013

Eric Thun and Douglas Fuller measure China's economic potential by examining its less well-known companies, which draw on their experience of working with foreign companies and their connection to the rising pool of talent at home to develop impressive capability. We have our own list of China's top 10 innovative companies (see p38) and it's a fair bet you will not have heard of any of them. Our advice is to keep a watchful eye on these companies in the future.

Make love, not war: a slogan for unreconstructed hippies, surely. It could be (though isn't) the slogan for one of Brazil's most successful cosmetics firms, Natura Cosmeticos. The founder's idealism does not seem to have dulled its business edge, though: a tripling of its share price since its May 2004 debut on the Novo Mercado speaks volumes. Its challenge now is to expand its formula to the market beyond Brazil's borders. Some analysts think the company's mission and brand will be lost in translation.

Corporations send messages to their shareholders or customers and are amazed to find they don't respond as expected. Companies unveil new products that the market does not like. Why does this happen? Tom Kowaleski thinks the clue might be in the way the human brain bends reality to suit our desires and wishes.

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