Today on The Negotiation, Todd speaks with author and educator Mark Greeven. He is a former Associate Professor at Zhejiang University’s School of Management in Hangzhou, China. Today, Mark serves as Professor of Innovation and Strategy at IMD Business School in Lausanne, Switzerland.

The biggest difference between teaching at Zhejiang and at IMD is that the former “has all the features of a bureaucracy that you could imagine when it comes to state-run public institutions.” Despite the limitations imposed on Mark during his time at Zhejiang, he found it refreshing that the students were nevertheless eager to learn anything that Mark was willing to teach.

If a foreigner is considering doing business in China, it pays to know the culture and the ecosystems that are unique to the country. Mark says that it will help greatly to familiarize oneself with all the eCommerce and social media platforms that essentially run the modern Chinese economy.

In China, Mark classifies four types of innovators who help shape the country’s business landscape on a cyclical basis. The first type is the pioneers: usually large, well-known business entities who kickstart or capitalize on new systems or technologies that will continue to evolve, such as manufacturing (in the 1980s) and the internet (in the 2000s). The second group is the hidden champions: lesser-known companies who are proficient when it comes to one specific technology, application, or industrial product. The third type is the technology underdogs: mostly younger companies founded by overseas returnees with newfound prestigious academic accolades. The fourth and final group is the changemakers: digital-driven ventures who believe in rapid iterations and offer disruptive new ideas for traditional industries.

Everything in China is always moving. In fact, Mark considers 2015 as having occurred “eons ago”. Countless waves of creativity and innovation have come and gone since. The Chinese, in times past, were not known to be inventors of new technologies as much as they were known to be able to adapt and mass-produce products that come from these technologies. Today, things have changed. When it comes to software engineering, AI, and biotechnology, China is now at the forefront of many breakthrough technologies.