Imitation, Models, and Innovation

In his book AI Superpowers: China, Silicon Valley, and the New World Order, Kai-Fu Lee gives a wonderfully interesting overview of the start-up culture in China.

In the beginning, it was about imitation.

I know and remember this well, living in Central Asia during the Mid-2000s. When iPhone came out in 2007 it wasn’t long before we could go to the market and find the Chinese knock-offs. They would look similar to an iPhone — but one quickly recognized this was not made by Apple. It’s was half the weight of an iPhone, the buttons were weird, and there was a “Hello Kitty” where the Apple label should have been.

“Real” innovation was happening in Silicon Valley. China was laughed at.

What most of the world didn’t realize is that China was developing a different model for entrepreneurship. The imitative, cut-throat world of the Chinese start-up was very different than the cozy, schmalzy world of Silicon Valley.

Instead of being mission-driven, Chinese companies are first and foremost market-driven. Their ultimate goal is to make money, and they’re willing to create any product, adopt any model, or go into any business that will accomplish that objective.
— Kai-Fu Lee

Lee argues that it will be China’s market-driven model that implements AI over America’s mission-driven model. In fact, they already have. China is now a nearly cashless society. New start-ups are finding ways to implement technology in the market, versus start-ups in the US who are still trying to “innovate” the technology itself. The innovative implementors will be the winners when it comes to AI. China’s on track to do this faster than America because of their entrepreneurial model. (Of course, there are complex political issues involved with this as well. I recommend Lee’s book. It’s fascinating.)

Here’s the point:

Don’t confuse imitation with models.

But don’t disparage imitation, either.

Sometimes imitation leads to models that result in real innovation.

This is true for art, business, books, music — any endeavor that involves making something. We often start with imitation. And that’s okay.

Steal like an artist. Even if you’re starting a business.

Every new idea is just a mashup or a remix of one or more previous ideas.
— Austin Kleon