Business innovation is an essential component that plays an important role in the growth and development of a country. Innovation can be in the form of the creation of new technological practices for improving the current product line or the creation of entirely new products. The economic performance of a country is also associated with the extent of business innovation. By integrating the resources, implementing change in the policies and procedures of the country, innovation can be effectively implemented in the country (Harwit, 2002). The paper will provide a detailed description about the creation of new business for economic growth and development in the global market for China and other countries. The paper will also focus on the business environment of China for innovation in the technology.
//After discussing the importance of the business innovation and the effect of the economic performance of the country on the innovative product and services, now, we will discuss the 'Business Creation' in a Country. I am taking 'China' for the business innovation. You are free to take other Country of your choice. We will also discuss the PESTEL analysis of the China on the 'product innovation'.\
New Business Creation in China
New business creation is helpful for a country in the growth and development of its economy. Effective integration and collaboration of the available resources along with the implementation of new technological practices, assists in the innovation of new business venture in a country. For effectively accomplishing the task of business innovation, it is essential for the business authorities to focus on the business environment of the country and the market forces driving the market. It is also related to the capability of the business practitioners of a country to provide their innovative products and services in the regional, as well as, global market place (Yang, 2003).
For getting success in a high technology business, the first and foremost requirement is the degree of innovation and use of technological innovations in the business practices. It is also helpful in getting competitive advantage from the market and attaining economic edge. The Chinese business environment is supportive for the establishment of a high technology business in various ways. The political environment of China has a great influence on the private and public investment decisions. Now, the political authorities are also supporting foreign participation and intake in the Chinese market place for making a high tech economic framework (Harwit, 2002).
The Government is also supporting the business participants by providing them with required infrastructure and resources at comparatively low price. The economic environment of China is also supportive and is providing subsidies in tax and tariffs, as well as, supplying incentives in the trade policies. The regional states are also coordinating with the business ventures by supplying concessions on the infrastructure and trade policies. It is helpful for the establishment of the high technology foreign companies in Chinese market place (Steady growth of foreign trade and opening up, 2007).
The social environment of a country is required to be supportive of the technological innovations in the business practices. The technological knowledge base of the people and the acquirement of the technology in the market are included in the social environment of a country. The social environment of China fulfills the requirements of the high technology business companies. The people have a strong high technology knowledge base and the Government is also providing provisions to the people of the country for gaining high expertise and education.
The technological environment of a country has to be considered and studied effectively for the expansion and innovation of business. The technological environment of China is well developed. The business organizations also focus on