China produces more than a million engineering graduates a year—which is seven times as many as America. It is second in academic publications to America and by 2015 will file more patents annually than America. China has already invested tens of billions of dollars in research and has labs and infrastructure that are at par with the best in the world. Its government is focused on building an innovation economy and will do whatever it takes to leap ahead—even if that means stealing technology from the West.
