2. Preface
China as a growing nation has seen one of the fastest developments in the modern century.
The size of the consumer market is second largest in the world and is projected to triple in size
by 2020s. The pace of change and fierce competition have lead to an increased focus on
entrepreneurialism and innovation. China is rapidly transitioning itself from a manufacturing
economy to an innovation led market in the recent years.
The sections below will detail key insights from my experience spent immersed in the midst of
the innovation ecosystem in Beijing, China and what businesses can learn from entrepreneurs
who have rapidly grown within this economy.
Annie Shu – August 2015
4. 1. Entrepreneurial learning in China
Overseas Talent
Entrepreneurship Conference
OTEC is one of the largest start-
up events in China, the
conference begins with the
International innovation summit
of TechCrunch, followed by
international pitching of
innovation from across the globe.
The event is produced by
TechCrunch China at the
emerging hub of innovation and
entrepreneurship in Chaoyang,
Beijing.
The conference bought
together entrepreneurs from
United States, Europe,
Australia and Asia
showcasing innovation and
thought leaders from 5
different industry segments.
During the week of
conference, it attracted more
than 7000 innovators and
500 entrepreneurial teams.
OTEC is a great platform for
entrepreneurs to showcase
their innovation. It was an
opportunity to be at the
forefront of change seeing
these new ideas emerging from
the technology, health,
environmental and energy
sectors that has the potential to
revolutionise the industry.
Annie Shu – August 2015
6. 1. Entrepreneurial learning in China
Rapid pace in increasing
venture capital funds
Australia in comparison to
China has much lower venture
capital investment, investing in
500 or 1% of estimated 30,000
investable business of high
growth potential. China has
invested start-up capital
exceeding $57b USD.
When visiting VCs and angel
investors in Australia and
China, the typical pace of
investment in China is roughly
six times the size in Australia.
Government Investment into
Capital
Chinese government is playing
a key role in shifting China to a
more innovative economy.
Since 1980s, there has been
investments into the
development of innovation
incubators and hubs throughout
the country. Tax incentives,
monetary grants and relaxed
laws have been granted to
further encourage
entrepreneurship in China.
Annie Shu – August 2015
Competition creates ambition
and risk taking culture
Due to the competitive nature
of the Chinese economy,
entrepreneurs from China tend
to produce increments of their
idea to test out the concept and
rapidly evolve from the
reception.
A large portion of these
entrepreneurs from China come
from humble beginnings and
are highly ambitious and willing
to take risks if they sense a
pay-out on their investments.
Source:
Australian Private Equity & Venture Capital Association Limited
OTEC Investor presentations
TRIGGERS FOR INCREASED ENTREPRENEURIALISM IN CHINA
7. 2. Innovation ideas insights and trends
7
Consumer market
Tapping into the giant
consumer market in
China
RECURRING THEMES OF INNOVATION IDEAS
PRESENTED AT THE CONFERENCE
Health and Wellbeing
Increasing awareness
and accessibility of
health aspects in
people’s lives
Energy consumption
Creating sustainable
living for households
and businesses
Gamification
Using game play to
motivate user
behaviour
Source:
Analysis from OTEC Innovation pitches Annie Shu – August 2015
8. 2. Innovation ideas insights and trends
8
TRENDS IN THE INNOVATION PRESENTED
Mobile – Instant access
Large portion of ideas had an element of an online or mobile platform to engage directly with
customers. Examples include Wellapets, an app to teach kids in schools healthy living
combining with games that are paediatrician approved health contents.
Shared economy – matching demand and supply
There is a trend seen in the ideas pitched to include innovation sourcing demand and supply
opportunities. For example: DineIn, an Airbnb of restaurants concept, users can turn their
backyards or homes into a dining experience with people booking and paying for their meals.
The concept aims to provide a direct connection for food lovers, chefs and owners of spaces.
Big data analysis
Utilising readily available information to better inform or enhance the experience of the user.
For example: Elumin8, a light device that collects and analyses home energy data to convey a
simple information to the user to empower them to reduce their energy consumption.
Source:
Analysis from OTEC Innovation pitches Annie Shu – August 2015
9. 2. Top 20 innovation pitches were presented at final round
9
10. 3. Innovation ecosystem in Beijing
Innovation infrastructure
Beijing has invested consistently over many years in national innovation and has created
several modern scientific and technological infrastructure including incubator parks, universities
and research institutes.
There are now approximately 1800 innovation hubs in China, 1600 of these technology related.
Beijing has seen several districts (Zhongguancun, Sanlitun and Chaoyang) becoming central
start-up communities. Zhongguancun, being named as Beijing’s Silicon valley, innovated an
impressive average of 49 startups per day last year.
Source:
OTEC Start-up ecosystem site visit
Bloomberg Business, China’s Silicon Valley Sparking 49 Technology Startups a Day, March, 2015
Annie Shu – August 2015
11. 3. Innovation ecosystem in Beijing
INNOVATION INCUBATOR
Case Study – TheNode
TheNode is an incubator situated in the popular
start-up space 798 of Beijing. TheNode focuses on
accepting mature start-ups that have secured
funding and development from Series A investment
round.
Dr. Gang Lu, founder of theNode, believes that life
experience is the best incubator for startups, “For
those who have really lived their lives can spot the
demands of everyday life. Entrepreneurship should
be a joyful experience and a positive life choice,
rather than a backbreaking journey.” This theme is
consistently displayed in the setting of TheNode.
Source:
OTEC Start-up ecosystem site visit Annie Shu – August 2015
12. 3. Innovation ecosystem in Beijing – TheNode start-up wall
12
Source:
OTEC Start-up ecosystem site visit Annie Shu – August 2015
13. 3. Innovation ecosystem in Beijing
INNOVATION CO-WORKING SPACE
Case Study – Woo Space
One of the newest and fastest growing co-
working spaces in Beijing consisting of over
800m2 per Woo space site. There are
currently 3 Woo co-working spaces in China
with the aim of expanding to 10 new
locations by Feb next year.
Each of these locations have drawn about
two dozen Chinese startup teams to the
space including meeting facilities, co-
working desks, creative breakout areas and
innovation cafes.
Source:
OTEC Start-up ecosystem site visit Annie Shu – August 2015
14. 3. Innovation ecosystem in Beijing – Woo space
14
Source:
OTEC Start-up ecosystem site visit
15. 3. Innovation ecosystem in Beijing
BILATERAL INCUBATOR
Case Study – China Australia Millennial Project (CAMP)
CAMP is a world-first bilateral incubator uniting 130 young leaders, innovators and
changemakers from China and Australia to tackle global challenges spanning 13 different
thinktanks including digital disruption, sustainable living, global talent, entrepreneurship,
infrastructure and many more.
During the course of the incubator, each of the teams were placed through modules to ideate,
build and test out the concepts. The thinktank then went into a one week accelerator where
their ideas are challenged and pitched to innovation mentors and investors.
Annie Shu – August 2015
16. 3. Gamification thinktank – Solving for customer’s need
16
CAMP delivered 25 incredible ideas solving issues that is prevalent to both China and
Australia. During CAMP process, I was fortunate to be involved in the Gamification
thinktank tackling the question on “how can gamification foster collaboration and create
sustainable social impact?”
Thinktank Concept
Our solution is an innovative concept that uses gamification to relieve stress triggered
anxiety. In recent years, anxiety is becoming a hidden disorder in both China and Australia.
Due to the negative stigma associated with the issue, many who are suffering anxiety often
leave it untreated until it gets out of control. This has resultant impact on productivity and
wellbeing of the individual.
Annie Shu – August 2015
17. 3. Gamification thinktank – Solving for customer’s need
17
Unxiety, an interactive platform designed specifically for young professionals in the
workplace. Unxiety assesses user’s individual circumstance to provide a tailored program
and a companion ‘friend’ allowing each participant to use game therapy to navigate
through a series of self-discovery and self-recovery adventures. The tailored program
offers a differentiated way to deal with the problem and motivate behavioural change.
Annie Shu – August 2015
18. About the author
18
Annie is an innovation manager at Westpac where she facilitates the innovation
mindset to businesses and individuals, enabling them to think outside the box,
provides capabilities for them to tap into opportunity areas and ideas that are
differentiated in the market to add maximum value. Prior to this role, Annie has
worked in the strategic function, finance, customer centred design, technology as
well as in institutional banking in the expansion of the Asia presence into
Singapore, China and India.
Annie Shu
Annie Shu – August 2015
