Traditional manufacturing faces great challenges

With the fresh release of the 2016 Top 500 Chinese Enterprises list, a detailed report on the 2016 Top 500 Chinese Enterprises has also been released. Through in-depth and systematic big data analysis on the scale characteristics and industry characteristics of China's top 500 companies, the report predicts that the complex growth that China's economy may face in the long term and the institutional environment that affects the development of large enterprises will continue to be optimized. Unfinished. The task of structural reform on the supply side faced by large enterprises is very serious.
"The big business is difficult to turn around." Large enterprises tend to be less responsive to changes in new technologies, new formats, and new markets. Although most of China's top 500 companies are old faces, they are mainly based on traditional industries. However, in the 2016 China Top 500 Enterprise Development Report, innovation became the key word for these large companies. The report shows that the top 500 companies are shifting from scale expansion to innovation and development. The number of patents, especially the number of patents for inventions, has grown significantly.
The report also pointed out the shortcomings of China's corporate development. As a whole, China's key technologies and core technologies are not subject to substantial changes. The lack of original innovation and integrated innovation as one of the independent innovation capabilities and R & D system is the biggest problem facing China's manufacturing industry. Chinese enterprises urgently need to make breakthroughs in core technologies. However, due to the lack of high-end technological innovation talents and skilled talents, breakthroughs in core technologies and key technologies are not obvious. The major problem for Chinese large companies in terms of innovation is that the vast majority of companies do not have a corporate R&D management system and maturity model that suits the conditions of a socialist market economy. Most of the large state-owned science and technology enterprises have large-scale scientific research institutes below. They have a number of scientists, engineers, and young doctors. However, the overall corporate R&D management system is a nationwide system under the planned economy model, and scientific research management is “heavy and light”. The market incentive mechanism for talents is seriously insufficient, and it is naturally at a disadvantage between international talent competition. Especially under the control of the group’s total salary, the problem of brain drain is prominent; various scientific research institutions within the enterprise group are divided and it is difficult to form a synergy. How can we take advantage of the resources and talents within the large state-owned science and technology enterprises and concentrate our efforts on major issues? It is only under the new conditions that state-owned large-scale technology companies should explore.
In addition to breakthroughs in technical innovation and R&D management of a few large-scale private enterprises, most other companies’ technological innovations and R&D management models are being explored. In particular, how do scientists, engineers, and young scientists and technicians motivate restraint assessment? Strengthen cooperation and exchange with foreign talents. If we cannot form a technological innovation model and scientific research management system under conditions of market economy, especially in the context of international competition, then the technological innovation of large Chinese enterprises will inevitably have a long way to go.

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