New assessment of top universities
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@xenon's point is valid. Though China is not without "real innovation" (e.g., their "far side" lunar landing, their BeiDou satellite positioning system, their mass surveillance technologies, their Internet censorship capabilities, their computer graphics capabilities as seen through computer games and animation series, etc.)
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They have a lot more people. They have more "honors students" than we have students. They have more "STEM graduates" than we have graduates. They just have to not sabotage themselves and they are bound to "win" just by having a lot of people. (Of course, the same can be said of India and Indonesia; just a matter of time.)
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The majority of Asian education system (especially north Asia) is based on memory learning and group learning. It does not encourage individual thinking. That is why the US still leads in innovation.
If things are going along they are supposed to, Asian companies and people do great. But, when things go different from what is expected, it is more difficult to react and adjust.