Survey: China to Replace Silicon Valley as Tech Innovation Hub

China is seen as the next global technology innovation center replacing Silicon Valley, according to results of KPMG Global Technology Innovation Survey released on Wednesday.

KPMG surveyed 668 business executives in the Americas, Asia Pacific, Europe, the Middle East, and Africa, according to the company, adding that respondents come from tech startups, mid-to-large size enterprises, VC firms, and angel investors.

The survey results indicate that 44% of respondents expect the world's main tech innovation center to move from the Silicon Valley to another location outside the US. "44 % of those respondents who believe the center will shift will move to China," said EgidioZarrella, Clients and Innovation Consulting, KPMG China.

Both China (30%) and the US (29%) are also perceived as countries that are likely to produce the most disruptive tech breakthroughs with a global, leaving India (13%) as a distant third, according to KPMG.

"The broader high tech environment in China is emerging at speed and scale, and is seen as one of the game change enablers for the country's economic transformation," said EgidioZarrella, Clients and Innovation Consulting, KPMG China. "The survey findings demonstrate that China's innovation investment has fostered an environment for the development of disruptive technologies that's growing by leaps and bounds."

The emerging cloud in China

China also keeps up with the latest tech trends, having designated Beijing, Shanghai, Shenzhen, Wuxi, and Hangzhou as cloud computing service innovation pilot cities, in addition to its plan to invest US$154 billion to boost the cloud sector over the next few years.

China is moving in the right direction as cloud is set to drive both tech and enterprise tech development. "Cloud will have a major impact -- 31% of respondents say that cloud software as a service will enable the next indispensable consumer tech by 2015 while cloud infrastructure as a service (22%) and software as a service (21%) will drive business transformation," Zarrella noted.

Subscribe to the Business Brief Newsletter

Comments