Former Google VP Kai-Fu Lee Got a Nickname, Start-Copy Lee
jyorr.com
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I am a little surprised to see this from as respected a person as Kai-Fu Lee, who I'd expect to be innovating, but you just have to shrug. This sort of thing happens in business, and it's not worth getting too excited about.
1. The Japanese Way - Innovate By Leapfrogging. 2. The Indian Way - Innovate By Piggybacking. 3. The Chinese Way - Innovate By Copying.
Looking at how things have been over the years, China isn't going to stop a strategy that has worked across industries.
probably this paper?( by the Lemelson-MIT program - warning pdf) http://web.mit.edu/invent/n-pressreleases/downloads/sustaina...
"Innovation to help achieve the goals of sustainable development can start in many ways, including: “copy-catting” (i.e. Japan, Korea and China first mimicking manufacturing techniques and then becoming world leaders.); “piggy-backing” (i.e. India performing service work for rich countries and adapting information technology to local needs); and “leap-frogging” (skipping over technologies that are inappropriate in a given place and time and adopting more sustainable solutions).
....................
“Copycats” imitate ideas, technologies and techniques from other countries and improve and adapt them. During its first few decades, the United States took the key secrets of the Industrial Revolution from England, Scotland and France and launched its own industrial economy. Two centuries later, Japan and then Korea developed by adapting American manufacturing, raising the quality and lowering costs. These days, China is doing it with much success, moving up the innovation ladder at a rapid rate.
“Piggybackers” ride on the backs of rich nations by doing more and more of their manufacturing and service work at far lower costs. India is practicing the art of piggybacking right now, using advanced computing and communications technologies to perform software development, tele-services, and even high-level innovation at a fraction of the labor costs compared to performing the same jobs in the United States or Western Europe. A recent study showed that one in ten U.S. software jobs will be exported to places like India and China over the next five years.
Finally, “leapfrogs” skip over inappropriate technologies and embrace new ones, such as Finland’s sudden break from Soviet domination and its rapid adoption and development of new inventions like wireless networks.
"
I do agree though that the American way is basically to do whatever you need to make a good profit, be it coming up with the next great product (the iPod), ride along with a great product (the companies that make iPod docks/sleeves/cables/whatever), or copy a great product (Zune, and didn't that turn out well?). I just think the American copies are slightly more ethical than some of the Chinese ones.
http://www.businessinsider.com/what-do-ebay-facebook-and-gro...
I visited Berlin a while back and my buddy was telling me about a bunch of guys who've built a successful business (dozens of engineers) just cloning 'hot' American products.
It's got to reduce the number of people working on brand new ideas. (I'm not suggesting that you can't build a great business by copying somebody else's work, but you won't build a world-changing, super innovative company doing so)
We even think about moving to the US, but as a foreigner it's also not "easy" (well, noone said it would be easy to start something on your own - but you get what I mean)
According to Inc., "Norway has more entrepreneurs per capita than the United States":
http://www.inc.com/magazine/20110201/in-norway-start-ups-say...
(Disclosure: I am indeed Norwegian.)
I think the more interesting question is how to create the next Google or Facebook outside the US.
We do have a bit more middle-class companies, or at least so it seems. As with almost everything, the US is more about extremes than Europe.
(No, I'm not taking a position on whether that's a good idea. I am not an economist, and I try not to play one on the Net.)
(Not really an economist either, although I do have a little training in the area..)
1) 20k minimum for startups
You're confusing a few things here. The costs to form a company depend on what kind of legal form you want it to have. What you're talking about is the GmbH (basically a LLC), where you actually need 25k of capital. This is by far not the only form a company can take. If you just want to make sure that every founder gets its part, you've got a name for the company etc, you can form something like a UG. If you don't have more than three founders, you can use some standard forms and everything's done within a few days at most. And even if you want limited liability and don't have the capital, you can choose from several other legal forms available in Europe. The British limited company is quite popular, as you need less capital.
This is hardly a problem for most IT-based startups, who rarely have a lot of founders or actually trade something (where limited liability is quite welcome).
2) Diplomas/certificates are required
There are several cases where this is true, but I don't see any that would affect startups. Yes, if you want to become a hairdresser or want to open your own carpentry shop, you need to have the proper papers. For a web-based startup? What kind of papers would those be?
3) 35 hrs/week
That's France. Never mind that the difference between a regular job and startup hours doesn't have to be that different. And even if you're doing the stereotypical 100+ hours a week, the difference to a regular job in any country will be quite high (well, South Korea excluded).
4) Less hunger because of welfare
Hows is that particular to startups? If this were true, people would drop out of almost any job because it would be easier otherwise. Germans on the dole don't live in limitless luxury.
I'm not saying that there isn't a tendency to copy things here. The whole Facebook vs. StudiVZ affair is pretty embarassing. But that's basically one market niche some companies are filling, it's not really representative of the whole German startup scene.
Yes, there's no equivalent to the venture capital-backed silicon valley startup scene. But that's pretty unique in the US, too.
But yes, it seems to hover around 40 hours for most countries. Strangely even for France, where this is bordering on the illegal... Found an old page where the Brits are complaining that they're working more than the average, don't know how they filtered the results to get to that conclusion. The Swiss do seem to live up to their industrious stereotype, though...
Never heard about a 35+ pay hike in Germany, though. Considering that there's no minimum hourly wage and most people are paid fixed salaries anyway, this wouldn't even get you very much. Sounds more like a result of collective bargaining than a federal law.
[1]: http://epp.eurostat.ec.europa.eu/portal/page/portal/product_...
You don't have to watch Fox News to know that Europe puts more obstacles in the way of entrepreneurs.
As someone living in Canada, I can't tell you how frustrating it is to see great companies not servicing their neighbors to the North. Examples: Amazon Mechanical Turk, Google Checkout, Google Voice, Braintree, WePay.
Windows (copying MacOS)
Lotus 1-2-3 (copying VisiCalc)
GNU/Linux (copying Unix)
Gosling Emacs (copying ITS and Multics Emacs), which eventually became GNU Emacs
Excel (copying Lotus 1-2-3, to the point that VisiCalc slash commands still work in Excel last time I tried them about five years ago)
OpenOffice (copying Microsoft Office)
C compilers everywhere (copying the original Unix C compiler)
Compaq's clone PC (copying the IBM PC, and giving rise to the entire IBM-compatible market)
Friendster (copying Sixdegrees)
Facebook (copying Friendster, somewhat less faithfully)
Every modern IDE (copying Turbo Pascal)
Every modern search engine (copying Google)
MS-DOS (copying CP/M and a little bit of Unix)
MercadoLibre (copying eBay)
Intel's current x64 CPU line (copying AMD)
Netscape (copying Mosaic)
Internet Explorer (copying Netscape)
Wordpress (copying Movable Type) (I'm not sure who to credit with the modern blog, with its comment threads, "after the jump", and permalinks. Pyra?)
Being able to copy the look and feel of competing products is crucially important to allowing innovation to continue. If Personal Software Inc. still had a monopoly on spreadsheets, it's a good bet that the spreadsheets we use today wouldn't have progressed much from where we were in 1984. The interface designs that seem innovative and unique today are either faddish crap or the baseline from which tomorrow's innovation begins.
Other than that - competition is good, and imitation should be seen as you are doing something good, now just make sure you can keep up or do it better consistently unless you want your competition to take over the market share.
Almost all of my examples could be accurately described that way in their first version. Maybe not Windows 1.0, not Facebook, and I think not Wordpress, and there may have been a couple of other exceptions. MercadoLibre still looks exactly like eBay to me.
LiveJournal had them all, no idea if it was the first (as you show, it doesn't matter much).
Many of your examples have the competitor creating a slightly different style, be it button style or menus. Open Office/Microsoft Office. Windows versus MacOS.
Hell, look at DuckDuckGo and Bing. Sure they are both search engines (just like Google) but they still have a slightly different visual identity and results page than Google.
HN is very similar to Reddit but still tries to do small things that differentiate it.
The original post looks like literal translation of Tumblr. Even if they changed the colors so that it fit with it's own identity I could agree with your point but this is not even close to being the case.
It's true that new compilers often try to produce the same effect with more efficient generated code, just as web sites might strive to produce the same visual output more quickly.
This is wrong because you are viewing the task of a compiler in terms of the result of the compiled program. A compiler is simply a translator from one language to another. The result of the program is the result of an interpreter running the code, not the compiler. Deviation from correct output in the compiled code is not only not allowed, it is deemed a bug in that code.
The unique part of different compilers is not the output of the compiled code they produce but the compiled code itself. All compilers should produce code that produces the same result if they are taking in the same input, by definition.
But blatant copying?! Even the UI?! C'mon Kai-fu, I'm sure Innovation Work can do better than that. The whole purpose of Innovation Work (which is itself a copy of YC, for those of you who don't know) is to spur entrepreneurialism in the region, but all I see is setting up a very bad example. I can't imagine how the founders feel OWNERSHIP in their startups. It's more like a gold rush.
Disappointment aside, though, this strategy works. Take something that works, and apply to the China market. Why reinvent the wheel? But I'd argue that they should do a better job with "copying" -- you don't really want to invite criticism for no gain, unless the blatantness of copying is part of the strategy (to show investors that they literally and successfully cut-and-paste working startup businesses, like an assembly line).
Hmm, now that I think about it, perhaps that's the whole point.
http://fan.renren.it/a/ITxinwen/hulianwang/20110325/79864.ht...
I hope this means that all startups take the internationalization seriously from the beginning. Hopefully we can get some sort of solid services / startups / processes that can help internationalize companies much earlier on.
The current crop of localization services are frankly inadequate.
There's a difference between ideas and the expression of those ideas; that's why patent and copyright are separate. What's being complained about here goes beyond copying ideas, into copying expression.
They never seem to copy the whole experience as a whole, as it seems to be with Chinese ones - but useful bits here and there.
On the other hand, when they don't copy they are accused of that anyway because for some reason Russians value precedence in tech highly.
In all the world the problem seems to boil down to: If there is a business model that works and the niche is vacant in their market, why innovate?
But there is a pretty good chance that Tumblr and Quora will soon be blocked in China. (All it takes is one blurb by one user on a sensitive issue, which is how Posterous and blogspot got blocked).
So if we assumed that
1) A product like Tumblr creates value for it's users 2) Tumblr will never be able to profit from China without the government/network connections
then cloning Tumblr seems like a win win scenario for everyone involved.
If doing a startup is about creating something users want(that doesn't exist yet or is not accessible for whatever reason), and the spirit of startups is to do things as efficiently and cheaply as possible, then isn't Diandian(the Tumblr clone) doing exactly what they are suppose to?
Disclaimer: I founded a startup in Beijing a few months ago, and actually received seed funding from Kaifu's Innovation Works. I don't work for them, nor am I trying to defend anyone's actions(Come on guys... even the ICONS?). Just offering a different perspective from the other side of the the great firewall of China. ^^
Cloning might not be the most ethical way of building a product but clearly DianDian identified a market that wasn't being served in China and had the ability to bring a product to that market.
I love that the discussion of cloning was happening on "Zhihu, a clone of Quora".
This is the author's big conclusion? He just had to go snarky with it? The guy once wrote about honesty and integrity. That was TEN years ago; it's not some big scandal that he has now taken a couple products that were not available in the Chinese market and brought them to market as quickly as possible.
If you can get away with it, why not make your minimum-viable product a near-clone of an existing product that works but not in your market? That seems like a very sound strategy to me. Once he gets some traction and begins to see what improvements he should make in the context of his market, the product will begin to diverge.
If Tumblr wants to localize to China with an all-new Chumblr, then we can start fighting over IP theft. Until then, the guy is simply doing a service.
Blogs used to be superior to mainstream media because they gave the straight facts while avoiding the sensationalism that plagues modern day media. It's too bad the latest wave of bloggers are all wanna-be journalists.
On the Tumblr monetization front, TheStartupist[1] covers a good portion of their story. Checking Crunchbase[2] shows that they've gone through pretty large funding rounds, with their last one (D) at $30M the largest. I've been trolling Tumblr for the last year and half, and the only things I've been able to scrounge are the $9 Directory listing under your category of choice and the premium themes.
They're still growing massively, as all the cool kids congregate there to post their Instagram-faded pics of teenage angst, but are hemorrhaging money like Twitter. And like Twitter, advertising is viewed as pure evil[3] and not a viable solution to generate revenue. Twitter realized the inevitable and started Promoted Tweets recently, and Tumblr will have to do something similar soon as well. Maybe they make enough from the themes, but that seems a little quixotic.
[1]: http://thestartupist.com/2011/01/the-hypothetical-monetizati...
[2]: http://www.crunchbase.com/company/tumblr
[3]: http://latimesblogs.latimes.com/technology/2010/04/tumblr-ad...
What will happen if China and the US reach some kind of agreement, and unlocking online US-services will be part of it?
AND when cloning physical goods (like phones, cars, clothes, shoes, whatever) -- you can export them, since people are willing to pay lower prices for clones. How can you export a Tumblr or a Twitter clone, when both are freemium?
How are these clones surviving? Do they generate revenue, when Tumblr, Twitter and Facebook can barely do it?
Something is not right about this picture ;)
If China and the US reach some kind of agreement - and the services were unlocked - there would already be enough of a market share for the existing clones to maintain control over that market. Future clones would still have a chance in succeeding as well depending on the race to localisation of the products in the local language and demographics.
I'm sure they will figure it out eventually, I'm just unsure whether they are going to have an easier time then this chinese clone(at least to the point where they will be pointing and laughing).
Lets not forget that tumblr has spent millions of dollars and years coming up with the mix of what makes tumblr work and it has been essentially copied wholesale, if this ends up working in a chinese market, thats a huge competitive advantage for the chinese clone, because they didn't have to spend any of that money or resources to begin with.
by Kai-FU funding knock off clones rather than investing in something new that takes VC money away from other potential successful startups in the startup scene in China.
Also, there's a special place in hell for people who can't just come out and call a clone a clone.
Are you questioning the meaning of this phrase or its applicability? If the former, then it is a reference to Dante's The Divine Comedy. If the latter, then in The Inferno, there is a special place reserved for thieves and betrayers. In a way, if you are a hacker and you blatantly rip-off the work of another member of the community, you are betraying said community. So the innermost circle of hell is reserved for you with Brutus, Cassius and Judus.
Wikipedia: "The traitors [who are suffering in the deepest circle of Hell - me] are distinguished from the "merely" fraudulent in that their acts involve betraying a special relationship of some kind. There are four concentric zones (or "rounds") of traitors, corresponding, in order of seriousness, to betrayal of family ties, betrayal of community ties, betrayal of guests, and betrayal of liege lords. (...) the traitors are frozen in a lake of ice known as Cocytus, with each group encased in ice to progressively greater depths."