Bang
The Hidden Columnists--Tom Friedman Edition (04 Nov)

Mr. Friedman is still in China, and his column--"From Gunpowder to the Next Big Bang"--focuses on knowledge capital and how China is motoring along fast to catch up (and eventually outpace) the US:

Check out Microsoft Research Asia, the research center Bill Gates set up in Beijing to draw on Chinese brainpower. In 1998, Microsoft gave IQ tests to some 2,000 top Chinese engineers and scientists and hired 20. Today it has 200 full-time Chinese researchers. Harry Shum, a Carnegie Mellon-trained computer engineer who runs the lab, has a very clear view of what Chinese innovators can do, given the right environment. The Siggraph convention is the premier global conference for computer graphics and interactive technologies. At Siggraph 2005, 98 papers were published from research institutes all over the world.

Nine of them - almost 10 percent - came from Microsoft's Chinese research center, beating out M.I.T. and Stanford. Dr. Shum said: "In 1999 we had one paper published. In 2000, we had one. In 2001, we had two. In 2002, we had four. In 2003 we had three. In 2004, we had five, and this year we are very lucky to have nine." Do you see a pattern?

In addition, Microsoft Beijing has contributed more than 100 new technologies for current Microsoft products - from the Xbox to Windows. That's a huge leap in seven years, although, outside the hothouses like Microsoft, China still has a way to go.
[...]
Once more original ideas emerge, though, China will need more venture capital and the rule of law to get them to market. "Some aspects of Chinese culture did not encourage independent thinking," Dr. Shum said. "But with venture capital coming into this country, it will definitely inspire a new generation of Chinese entrepreneurs. I will be teaching a class at Tsinghua University next year on how to do technology-based ventures. ... You have technology in Chinese universities, but people don't know what to do with it - how to marketize it."

A few of his young Chinese inventors demonstrated their new products for me. I noticed that several of them had little granite trophies lined up on their shelves. I asked one of them, who had seven or eight blocks on her shelf, "What are those?" She said the researchers got them from Microsoft every time they invented something that got patented.

How do you say "Ferrari" in Chinese?