Since World War Two, Asia’s economic success has been driven by a business model that relies heavily on networks of businesses and influential families. But this model — which concentrates power in the hands of relatively few and relies on connections over education or effort — could slow Asia’s development through the next century unless it adapts and innovates.
Short of a radical transformation to a more competitive and popular capitalism — a feature of the Western world — Asia’s scope to innovate within its existing business model depends on how one defines innovation.
If, by innovation, we mean the discovery of something new, such as a new technology, product or business model, then Asia may not be well-placed to lead the next century. But if we mean an economy driven by scaling up new discoveries into a big mass market — something that big, established firms do well — then there is no need to worry.
