Acknowledgement

The CIP hypothesis is the result of a discussion between Marius van Bergen and Dirk-Willem van Gulik.

An interesting observation is that software plays an increasingly important role in the field of electronics.

Modern software is more about the optimization of craftsmanship than about innovation. It is what the “Silicon Valley literati” and agile-devoted startups expect from the “ Silicon Valley scribes”, i.e. begin with copying from stack overflow. Software is often free and easy to copy and paste, as opposed to social skills.

By consequence, the hardware also becomes easier to copy and paste, in which case innovation loses much of its fashionable appeal. The services sector also largely relies on software.

The question then becomes: is China’s Innoflection Point the moment when optimization becomes innovation or the moment when innovation becomes optimization of the higher end of the value chain.

Either way, as the Chinese are masters of optimization and skilled networkers at that, the West needs to prepare for more Chinese brands entering their lives.