this is the market we’re going to

walking and I really highly suggest you

just hold the camera down by your side

like it’s awful they’re very strict

about no camera policy it’s so busy plow

the parts to every manufactured recycle

some are new some are fake replacement

batteries and screens for Samsung

tablets backings for Samsung tablets

then you see you back over there see

those big chest escapes over there all

cash

you want to buy cases for your iPhone to

sell like me you can buy empty boxes

these are just empty boxes they’re

selling so this is women’s selling

iPhone 5c so they’re not new but

authentic they’re used and recycled then

a guy here swapping out parts casually

all the tools we need to repair phones

like the vacuum chambers the wire

cutters to remove the screens jigs to

like hold everything in place in the

lineup the screens the incessant

cracking of packing tape that’s the sign

of a deal closed and then you pop out

here and if suburbia welcome to the

suburb

you can’t talk bad about sister Trenton

started from a fishing village three

hundred thousand to ten million or ten

million 20 million no cities in the

history of human slavery no who is able

to do this turned away from with Google

to Toronto want to show you’re cool

water room I’m gonna go to the food who

did you cargo truck – certain is

creating more millionaires than any

other cities in China I mean they can do

everything the factory of the world that

follows on from the service it could be

Europe the u.s. anywhere else you about

nine months behind us when it up

technology and that just affect the

model that has been developed each

engine can actually be quite frightening

for models that have already been

established and very successful in other

parts of the world I do think that the

core tenants of sharing IP that they

have is extremely enabled it’s a

cultural change it would take a while

the future is possible

it’s not that Silicon Valley got

divorced from technology they’re very

much about technology they’re just kept

moving up the stack and the key thing

that drove that in my opinion was

Moore’s law Moore’s law is named after

Gordon Moore who was one of the founders

of Intel and in like nineteen sixties he

came out with a paper he predicted that

every two years I believe it was the

number of components that could fit in

the same piece of silicon would double

and so in one year you could fit ten

transistors in here to use there it

would be like 20 then 40 a decade on

you’re talking about like millions and

then billions imagine you have a printer

and your printing pages and you want to

be more efficient well you go from a

12-point font to a 6 point font

I think twice as many characters on one

page and you’re getting twice as much

information on your printer all in one

go and that’s literally all Moore’s law

has been is reducing the font size of

circuits in the 70s and 80s there many

failed research attempts to build

parallel computers by computers that

were like you know the Cray machines and

the Thinking Machines 60,000 processors

and scale up and what you found was that

if you spent more than two years of

research time to try and double the

performance your computer it was by far

cheaper just to sit back and wait and

let guys like Intel it just move Moore’s

law ahead and buy the next fastest

processor and so what you found was that

actually being in hardware wasn’t

profitable

and so what really sold products back in

the day was features well one of the

things you can do with Windows 98 is

similar to the web you can navigate on

your hard drives using the backwards and

forwards buttons just like we would on

the web the first generation of Windows

that would come out and a new generation

would be so slow it’d be completely

unusable and then two years later I go

it’s actually kind of okay and then four

years later it’s like zipping along it’s

not cuz Microsoft made it faster the

computers got faster for free and so

people are able to now not have to worry

about writing detailed stuff in C code

they could use high-level languages

they’re able to use like webpages and in

JavaScript comes along and with all of

that sort of fervor going on and people

chasing that innovation there was no

value in soldering parts it really

wasn’t in 1983

worldwide sales of personal computers

increased seventy six percent but last

year the increase was only nineteen

percent and this year analysts predicted

sales growth will flow to about four

percent losses among the two largest

home computer makers through June of

this year surpassed six hundred million

dollars in that building of stuff had to

go to an economy where people were paid

a lot less and what you see is now that

silk around the whole tech ecosystem is

served like driven as far as the road

goes and now Moore’s law sort of N is

ending or ended and the car is still

kind of gliding off the cliff right but

there’s no more road underneath it in

there like huh

like computers just aren’t getting that

much faster anymore and so now you’re

seeing people going through a phase of

optimization which is great but at the

same time people are like okay well how

do we differentiate my product right

like optimization sucks it’s not a great

business model is now we have super

computers in our pocket now the question

is what do we do with it right and what

does that thing in my pocket enough

already do and so people are realizing

there’s niche markets for hardware we

need to have a small accessory

like my Fitbit all these little things

my little digital locks my smartphones

my sensor networks the IOT sort of stuff

coming up and they say great we need to

figure out how to build this and now

they’re coming back to this ecosystem

maybe oh you guys know how to solder we

forgot about that

that’s really good can you help us build

these things what you always say when I

was 18 the first time I go to the US I

use a trash can and I got wood vacuum

cleaner till the very first pimp our

robot well you want a robot that’s just

like you are slightly better so you

always feel challenged I dropped out

from university after first year of

college decide to go for this path and

it’s really nice to be in hacks because

hexes are the best educator and help you

grow

hexxus a hardware accelerator the

world’s first hardware accelerator we

take teams that come in with a proven

technology and a prototype and help them

to get ready for market launch we

provide 100 thousand US dollars we help

them with electrical engineering design

for manufacture industrial design

mechanical engineering their market

strategy how they’re going to launch

them and for that we take nine percent

equity and in the startups

I’m Thomas co-founder of Enzo and I

drove and so we make a big robots we use

kind of special joystick it’s usually

used in surgery these things it’s a

force feedback joystick the the market

that we targeted the one of nuclear

decommissioning and what you can see

here is a small version of a robot and

now at hax we are building the very big

version so you can compare the wheel

size that will be something quite huge

the bigger version of the robot we

transport a robotic arm to automate some

of the part of the the commissioning

work engines as as everybody now knows

the hardware capital of the world right

so this has been our home ever since the

starts the reason we come come here and

take the teams here is because of the

ecosystem around which helps them to

build products really fast and from

initial concept all the way up to final

product release into the market Noah is

a headphone company we’re making the

world’s first tunable headphones they

work out how you hear and provide the

perfect music for you so I can show you

here the hearing profiles of my

colleague Luke and my hearing profile

what you can see is that there is this

difference at certain frequencies

between the way that Luke is sensitive

to that particular note or sound the way

that I’m sensitive to it what our

headphones do is sonically mold the

sound and make sure that what we hear is

not too bassy it’s not too trebly it

sounds balanced it sounds even and it

sounds the way that it was recorded

anybody who’s going through research and

development they’re better off doing it

here because they can get

has made so much quicker and so much

cheaper I mean you know you try doing

something like that in the UK and take

you around a month typically to make

something which is specialists from an

engineering firm here you can do in a

couple of days let’s say we completely

design a new robot we can get it out

pretty much in a week even if there’s

ten parts we can send it out or we can

do it ourselves so you get ten sweetie

printers to print at the same time and

you get all the parts put it together

and just fire I’ve never seen any

parallel typing like that when we were

in States for for some of the standard

ports we can order in the morning and

then we get it in the afternoon or the

day after we can get manufactured parts

and in a few days in Switzerland we were

planning to do this robot in nine months

and here we have the opportunity to make

it in in three months so it’s really a

race if you look back through the years

I obviously shinjang became a

manufacturing hub very very quickly and

not that long ago was literally rice

paddies

academic wise and in popular media it’s

usually summarized in one sentence which

is that Shenzhen was a small sleeping

fishing village and then because it was

designated as a special economic zone it

became a metropolis overnight that

singular sentence is what I’m trying to

demystify through my work today exactly

how many people lives in Shenzhen is a

mystery the number ten million is used

more as a reference so from three

hundred thousand to ten million this

population grows no cities in the

history of human civilizations we know

that was able to do this prior to 1980s

China was in a very poor economic State

there was a stagnation of industry there

was a planned economy no one was allowed

to own business it was a very poor

country the leaders in Beijing have been

thinking about what can they do to try

to lead the country out of poverty don’t

regard with a power damage engineer sort

of entities losses on the food

but regarding this my new daughter you

don’t wanna do her viola concert season

– all children jaggedy jungle abandoned

took a commercial the UPP tonic and oil

spill it take a commission for your age

huh taken our community need you want to

retain option side canadian-ish for

furniture don’t fail when he push a

Buddha Narada Toyama yo Jordan great

uncle Raghava they set up the four

special economic zones each of them next

to a already developed economy the

ambition was simply what can the country

do to generate jobs to generate economy

to feed the people essentially was a

very actually modest intention under the

plan economy that was a a social safety

net every person was rationed with food

coupons clothing coupons electricity

coupons

he was only in Shenzhen you can buy a

piece of bread with money which would be

willing to come to change into the

special anomic zone to try to create

something else

it attracted people who wanted to have

more freedom

general general shirt on today you go

cool talk o was hunting was hunting a no

idea the top turn of joy to return to

the corner to how cheer Samba song check

out our mission

nia-malika panic

you will send them in to stop Duncan

Mills updatable champion dr. tehrany

something you would know is selection

airship are so important ago pinguin the

content ji rationality high-energy

volatile financial market could play

with in rock ivanovitch and

show me how to Hoonah sit on shark

garage here telephone column entry hotel

magnate Philippe in Brewer for

substandard country’s food that has to

be an engineer seafood juicer to urgent

for the phone call Oh Mia Yugi

go where the syndication Olivia so it

will work

thirteen billion sentient from gulag ok

so check out shank all right three one

Tracy of years for the water cycle water

search engine what to me was remarkable

about engine is

even the planners themselves would tell

you that the city evolved in a way much

bigger and faster than they would have

predicted I think it’s it’s overly

generous thing that shinden was nothing

and then with this setup special

economic zone suddenly it became a city

it didn’t there is something else that’s

not answered simply by top-down planning

[Music]

[Music]

yes sir good morning thank you all for

joining me in a discussion about

innovation that is happening right here

in China we’re investing with you the

developer community we have been

investing in open source solutions

because we know that when there are

standards and when there are open source

offerings that the pace of technology

innovation and the pace of technology

adoption accelerates I think for the

past hundred years the Industrial

Revolution put us into more cages

consumerism has cubed a lot of

creativity but for the post-industrial

generation they should have more freedom

to create to explore to invent I think

to make a movement and we are bringing

that back so we’re here with the

MakerBot cupcake C&C which is a 3d

printer you can build things like Thom

Yorke’s head because he actually open

sourced the data that was filmed for a

video of his now what’s also interesting

about this whole scenario is that

there’s a whole thriving community of

users who are taking these to build all

kinds of different objects they’re

sharing the objects online and

additionally they’re sharing information

on how to build and improve upon the

design everything is completely open

sourced the software’s open-source the

hardware is open-source I just can’t

wait to see what people

I think the recent emerging of the maker

movement pretty much started 2003-2004

in the u.s. laser cutter and 3d printing

is helping people to be able to feel

stuff and as your beautiful fun rather

than just having business workers right

around that time the guy named Dale

Dougherty he was thinking about starting

a publication called make before make

came out the only word we had was a

hacker right and I think he didn’t want

to call them are using hack because it

had a really negative connotation at the

time and make was sort of the thing you

would type to compile a program so it

would resonate well with programmers and

make her was like sort of the demonym of

people who would read the magazine

that’s sort of coined the turn maker I

think in clean up publication he sort of

solidified the movement in the Maker

Faire created that phenomenon in China

in beginning nobody knows about makers

do bother cared about maker but because

we’re gonna make fierce in your cave

area where circulars so instead of woody

what I want to do it we say why don’t we

do it when they told me they were gonna

bring the first Maker Faire here I was

like how do you have a Maker Faire in a

area where people don’t make for a

recreational thing they do it for a job

right you know cuz making in the West is

something that you’re using to remind

people who are in service economies that

there’s a thing called manufacturing

right when you have a manufacturing

economy you want to remind them of this

manufacturing that seems weird and what

I realized is that actually China’s

middle classes aside the entire United

States population so even if a small

section Chinese people had risen to the

upper middle class it’s big enough to

create a movement in China itself

compared to the United States scale

maintained

we don’t know it’s going to be

successful or not the first year we have

over 60 makers and last year we have

over 200 makers it’s a huge number some

interesting phenomena are also emerging

out of this in the past years what’s

happening is the open source hardware

movement traditionally the circuit board

is codes and proprietary you need to

have a contract and not discovery and a

huge sum of prepayment in order to get

access but with open source however

everybody can access to that information

and everybody can modify that to suit

any people here they create a circuit

board and the just under expectation it

is going to be open it’s going to be

copy and evolved by someone else there’s

no one running around in Shenzhen say ok

well I should be created for creating

this if someone else can make this get

someone else to use it

Marietta better not having the Eagle

attached to your creations understand

how actually open-source system works

the maker movement is at that junctures

I’m getting a little sick of hearing

about the same people on TV over and

over and over again so I decided to do

something about it this Arduino project

which I called the enough already will

mute the TV anytime any of these

overexposed personalities is mentioned

to mute the TV I’m gonna use an IR LED

now any time a keyword is mentioned the

TV will mute for 30 seconds our

producers caught up with Kim Kardashian

earlier today it should do a pretty good

job of protecting our ears from having

to hear about the details of Kim

Kardashian’s wedding

Arduino is becoming the trigger point

because it has too many minions of

makers are using that robot arm for

their people have diseases stable if we

come to Shenzhen like 10 years ago 20

years ago it will be very difficult for

a maker to tackle the resources but now

you have so many resources it’s in the

middle of our reforming so the big

company especially the silicon providers

like Intel like a male like Ti they look

at that oh we have new customers we have

a new possibility for new future

applications of where our technologies

so they makes their own control board

like Edison a Curie so they want to tap

into the early stage of the development

of the applications now this port is

based on the Intel technology so it’s

tiny dual-core computer system it has

two Wi-Fi Bluetooth and is also it

around a Linux operating system on it I

think part of the reason Intel’s having

to sort of turn that way they know their

roadmap as well as anyone else does they

kind of define Moore’s law and they saw

the bridge go out and from underneath

them before anyone else did they manage

to drive technology like this and then

the other founders like TSMC and you see

a boss trail behind but now that’s

slowing down everyone’s catching up

they’re like oh god we’re looking for

air and trying to find a place to move

and so they’ve struggled to keep up with

the phenomenon they created they haven’t

made headway into mobile and those are

the most ubiquitous computer today

they’re missing on a huge market

opportunity and so it’s the extent that

they’re trying to figure out how to

adapt their innovation model to

something more flexible and so they

really want to make sure the Intel brand

is in front of the youth to make sure

that they remember that Intel is

actually like a thing that anyone design

with later on and not just you know

something out of reach

we have tried to introduce it to nine

years old this is a little bit difficult

but is acceptable you do not need to

write any boring code in a smart note

you can just drag and drop and the link

them together what they’re doing is

they’re learning how to code on a

computer translate that into hardware

and they’ll build a project on our laser

cutter or a 3d printer for something to

accept a stimulus light motion or sound

and then output some result last year

one kid built a key reminder for his mom

so that when she left the house a motion

sensor would pick up from it and say hey

don’t forget the cue and it’s kind of

funny to hear that a eight-year-old will

know whether he wants to be doing

mechanical circuits or just a purely

software experience

so that’s enter level and they would

give them more systematic introduction

to how to build have this fuse off you

go you can’t use the makerspace to

create whatever you want you are genius

you are young inventors I’ve seen some

great examples of open source hardware

being used to actually make a difference

and create a better world

the difficulty is monetizing that

because I do believe that business

solves a lot of the world’s problems and

people need to be able to make money if

you’re providing value to the world

which is making a lot a better place

then there should be compensation for

that

in 2010 I started the first makerspace

in China contagion I can invite a lot to

give a talk about open source our the

first question always come up on

people’s mind is how do you protect your

intellectual property and how can you

make money if you don’t protect your

intellectual property I got that

question in Shanghai I got a question in

Beijing I got that question everywhere I

go but when I give the same talk ins and

then the reaction I got is so what’s new

about this we’ve been making money on

this for 20 years

[Music]

charity Fashion Show treated or incision

dirty Santi Tunisia Tomohiro our lotion

del Papa for turn into bachata – I said

[Music]

the reason we’re here in much of on pay

is literally because of the Optronics

markets you know it’s a fantastic

resource of all different possible

components and different devices which

can kind of be Frankenstein together to

make prototypes both teams it’s a source

of inspiration it’s a source of

discovery of new products that could

potentially be taken to the west like I

see every month of different invention

down there but nine times out of ten

they’re probably not going to make it to

the west but some of them to trigger

sniffing and I’ve got my tongue be there

twenty more sugar turn into KGB okay

Soviets from the end okay right now so

chicken champion oh sure God what are

you gonna fire me though how does she do

it don’t wonder you motocross I mean I

don’t need that at all how are you

serious you need a little how many dozen

had pull it off the pie you can get a

little bit of feel here

what’s even upstream of what’s gonna hit

the tacking United States you see a

couple things popping up here they’re a

little shop will write will pop out no

we’re selling these things you heard it

before like the hoverboards were here a

couple years before they hit the United

States and then you eventually sort of

see them hit the states and other

countries Chile sweet you party on base

facility for Toledo they you go – ah

here’s our third Thomas all atoms each

transition for $15 each who volatility

to show you go show us a guillotine

Santi show liquor goggle at the whole

chillies which is sandy show water PA

there’s a number of different ways to

sort of look at the market for an

engineer you’re sort of limited it’s

thumbing through catalogs and looking at

pictures and very slowly going through

specification sheets for examples if you

want to put a switch in a product you

want to know how it feels you want to

kind of know the exact size and the

little mountings of the fussy bits and

it can take a long time to find exactly

the right part you come here and there

like stalls with like hundreds of

different types and you can just reach

in and just touch them and play with

them inking like walk stall buy stall

and see all the different variety and

it’s not there no it’s not just a

showroom F if once you find this which

you like you can be like hi like to buy

a thousand of them and then for a very

little price you can just over the kind

of buy it carry it off and you know go

into production

you can fix your phone here cause I

thought my chicken shawarma okay I’ll

call this order okay Alison a civilian

Tydeus is see as you

it’s got a huge amount of acquired

knowledge and skills there’s electrical

engineers there who soldier up 50 PCBs

for you in record time you can go down

there and piece together different

components to make a new mobile phone

there’s nowhere else in the world you

can do that you know you can get like a

chip set that was in a notebook for

example you know less than $15 which can

enable computing power insert a new

product that’s you know fantastic

resource for some startups that kind of

philosophy is kind of spread out around

China common salamander Midori

Yugoslavia Tony you got friends

Thomas championship Connor and harmony

garage boy you go poof anaconda Lima go

Pompano cumin karaokes hot olive oil

okay Oh chi-su so it’s awesome karaoke

party Oh Tom zero ha ha ha John Boehner

yo their entire hey shorty Yoder Nevada

with pas juste championship Angela

children and cover my so it Hamid

radians change across autocracy so you

know a Jelena

Todd Shenzhen Vikon champion Twitty on

Street home Seussian cobie.attribute Oh

Julia sangria – idea that her chose I

quote Ishaan trying to comb the halloumi

Akashi re near the Sharia

the Hatta Rajasa Maria

in Savannah Savannah Hajus will be loved

it long he died this one here Joe

come along it is 20 register Joe you’re

serious allegedly trot off the whole

Hollywood that Cody tour this year who

love jihad and willing by the kite uncle

Kai to meet us out there so you know

Commodore t-shirt if you can just

shuffle spiritual either washer when we

starting to look at the maker come into

something that’s this excitement and how

open this system is like nowhere else

you can fight all sort of stuff

everything is available embodied fine in

the West there’s a binary distinction

between the makers and the Howard start

up the maker you do this for fun you do

this for your passions but when you’re

starting to make this into a business

you should forget about sharing you

should forget about all this open stuff

and focusing on the business but in here

that’s very little differentiations

between I want to make this for fun and

I want to make this for profit there’s

no binary division of the micelle of

makers versus startup make Anna start up

in China it’s a continuum

you shouldn’t been stopped from making

money out of the thing you love to do

and you should not be forced to choose

between open and proprietary just

because you want to become a business

right now it’s just in the West we

haven’t seen open source our system

working chin up chin was a logo shirt

elites it’s all that arts all of agenda

Shima yonder Johanna comiendo went to

heaven familia que todo eventually more

young people now the second coalition I

found on my own that Allah would switch

here please in your AP events and the

Kohala to Jana first you should how the

Chilam chopped socially more yonder

I’ve owned she and aura that she sure

knows IEP neither chunk of our

generation

[Music]

in the West is an idea that I can have a

company that produces nothing it has a

ton of patents but produces money by

soon everyone for rights those patents

don’t even have inventors you have

lawyers making money off of buying

intellectual property and trading it

that’s weird

right it’s kind of weird that you

produce nothing but make a lot of money

the idea that you can take an idea in a

world that’s this big and say exactly

one person owns the right to it globally

like Apple has the right to the phone

with rounded rectangles they’re the only

people who can produce that really like

seriously this is the way we’re gonna

live in like we just give people

monopolies through the IP system for 20

years for stupid ideas because they were

first-to-file

that made sense back in the day when

there were few people less innovators

the less connected world now we have

like this network of people were like

we’re empowered to do our things and we

can almost trade our creativity and

China’s ecosystem it is this network

ecosystem of an idea for an idea like

let’s let’s trade now you realize your

place in ecosystems I need other people

around me you can’t be a dick to like

all the other guys around you just

because you have a pet monopoly of this

thing someday you’re going to be on the

bottom side of the chain and you’re

gonna need other people’s help and so

you build networks of collaborations

with people by sharing in this open

source philosophy

oh yeah we have all first copycat let’s

say it’s a fan so but yeah reverse

engineer from the video produced the

plan of the all the hardware companies

that come in here of course we encourage

them to pass on all of their technology

but we don’t expect them to fight

anybody who’s copying them we expect

them to be moving much faster than

anybody who’s copying them when coming

up with the next thing the whole time

and building a brand and then eventually

those patents may get used when they get

into a patent trade-off that’s the use

of a patents not not not to stop people

copying you the way to stop people

copying is to make whatever they’re

copying irrelevant because you come up

with something much better a huge

barrier I think to small companies the

United States is like the patent system

in the copyrights and just like left and

right as legal challenges and you spend

a huge portion of your money on lawyers

and IP filings and all that sort of

stuff it it’s a drag it really is if you

want to be making stuff you want to be

actually working with people and sharing

ideas openly and getting things going hi

I appreciation and I tell you many

things

this one’s called absolutely you control

speed baby this is my basically mission

SCADA coverage hacks yeah the whole

board story is very interesting example

of somebody in America who came up with

the intellectual property and then spent

a long time fighting manufacturers who

were actually creating something which

was similar that’s a great example of a

case where I would have encouraged

somebody not to start like fighting

around IP protection is better just to

build a brand around a really great

product make sure you’ve got you know

the leading product in

area this is really the first time we

have a technology product which become

widely popular which become a culture

icon but we don’t have a name for it it

just emerged more people come in the Bob

wait we get the Bobby Regan eventually

you will get to a form which will go

viral this is kind of point to the

future of how things could happen

so in Horsham Bay you still find Chandra

there are basically fakes there are

reproductions of established brands give

you an example because this is a

contemporary sort of Chandra SmartWatch

running on an Android system the

reproductions were really the items that

were sought after by people who could

not afford the the real thing

my understanding is that the early Shan

Zhai were people who worked for the

bigger corporations here like Nokia

Motorolla Foxconn and they were some

very smart engineers who got sick of the

management and I like look I can build a

phone cheaper better faster than these

guys can I understand why they have all

this process I can make it for half the

price if we just cut cut the fat and

they would quit talk to their friends

who they knew all this upstream

suppliers and they would get the other

parts and they would build you know what

were effectively you know copycat phones

the key innovations aren’t able to do it

much much lower cost just you know

learning how to walk before they could

run essentially the most similar things

to the ideas of Santa in the West it’s

the idea of Robin Hood they try to

empower the pool with the latest

advancement in technology since I and

the maker movement startups they have

written like they are very much share

the same spirit even the DNI from

becoming a they feel powerful

when they talk about people who left the

factories and copied a phone well that

was kind of like the open source stuff

that was an open source they just sort

of like oh the schematics are in the

desk I will community help myself to

them make a photocopy and then leave the

factory with them right you know was

that stealing or was an open source

right in in the West it’s called theft

right out here it’s called sharing so

the device is that there’s a haul from

the market and you can see it has a

number of markings on it this one was

the the higher grade version it was 70

80 bucks u.s. when you power it on you

see that it’s running a a very well skin

flavor of Android iconography is

actually pretty good and then the great

thing is this one supports two SIM cards

replaceable memory card and a

replaceable battery when it comes with

two batteries which is actually a

feature that many local people really

want to have there they’re unhappy about

a having no memory card slot and B

having not a replaceable battery the

companies were able to access very

easily the two basic components that you

need to make a phone one is the boom ban

which is basically a printed circuit

board and the other one is the Golmaal

which is basically the shell so there

were companies specialising in making

boom bang and boom all that had slots

for those printed circuit boards that

were very easily accessible buying by

companies you know people from the West

who are used to sort of month-long

development cycles like how do I do this

is amazing like this capability came out

of nowhere overnight but actually it’s

been honed over like a decade or two out

of those roots of people you know coming

out of the big factories and figuring

this all out themselves

shanje the example that is still going

on now but it is a very small percentage

of what is produced in the market there

is a very strong emerging middle class

in China that has the purchase power to

afford original items that may be more

expensive than being reproductions it is

not possible to target new markets just

with imitating the established brands

there is a limit to what can be achieved

in that sense once they kind of got in a

position where they could now build a

copy of a phone pretty well they can now

start innovating they’ll take like an

Android phone an iPhone and mash them

together and come up with this weird

thing that is pretty cool and is

different in some way you know if you’re

going in the market in question but you

will find there many people distributing

this type of advertisements for company

that are called white brand companies

that will make it for you

assembling various different components

and then you can add your your own brand

your own name or whatever you want and

distribute it as your own item yeah

these are these are all white label

ideas it’s an empty sample and all of

these are different empty samples so

they can go ahead and build it for you

on the spot and then order I don’t know

however many you want and later on you

can actually ask them to go ahead and

put your graphic on the front you know

for example or

maybe you know these logos over here in

the West kind of philosophy is are we

come up with something really

fantastically new that nobody’s done

before become the market leader and

we’re really successful the Chinese

mentality is slightly different they

look at something that’s already on the

market and then they create a much

better version of it much quicker it’s

not copying its

evolution of product which becomes much

better than what was out there before

we’ve grabbed another one in the market

there looks like a SmartWatch but you’ll

notice that I only has a single button

and the graphics are made for children

so this is a phone plus GPS module that

you can use to sort of report a kid’s

location if the kid is in trouble they

can dial their parents you can see it

has like SOS call features I would bet

that probably 80 to 90% of the design

material in here is borrowed from other

vendors who use these previously and

other SmartWatch designs but people are

sharing the IEP the guy who probably

shared the IEP to them was someone who

could sell them chips or motherboards of

circuit boards and so there was some

factory backing up and sharing crosses

they want people to use these things and

that lets these guys try try try like

this what many models of this in fact

we’re buying this as a woman next to us

was asking for these and then left on

the table we said this one’s too thick

let’s go find one this that’s that’s

thinner than this one over here they’ll

probably have less features or less

battery life or whatever it is but the

market here can build these different

variants and service it gives of the

phenomenal ecosystem

[Music]

something is really happening companies

realizing the importance of having new

ideas and being different so many

companies who were involved in the

shangela before are now looking at

design they are now looking at how to

develop innovation in their own

companies the model that has been

developed in Shenzhen can actually be

quite frightening in other parts of the

world and it’s not surprising that many

American companies are now looking at

models that are developed in China to

see how they can adjust themselves well

Suzy a woman was in the cheetah together

MCMC demo she got through to the yun

jeongsu t we

she can tell you what time G that to GTA

online

[Music]

intelligent opposition to me moon shall

fight Polly will I shoot right Noddy

[Music]

the OPM will show you in charge

champagne so far sure to eat actually

Eagle Eagle Chun somewhere trying from

the OEM OPM immune from erosion also say

oh you got ramen attention chanting in

Chinese hey I’m Jennifer that busy but

they’re now come on you’re not just one

room you’re okay amateur don’t try and

wash it out right up so those are son of

a product that we make this is President

Obama wearing my headphone with my

business partner Mitch Richmond this

peoples been here you know a car what I

am but Justin’s picture my partner Venus

Brown this year’s signed by Levinas

Brown what I am I forgot who signed this

there’s somebody famous I forgot this is

my office and that’s something I can

live without it’s my cigar like I can’t

do without my cigar sorry I just

cuz we are not your traditional I can

manufacture right which is you know give

me a product and manufacture we

manufacture stuff like a monster and all

that a Harman Kardon creative Altai

Clancy JBL all the biggest industry we

actually dominate anywhere between 8 to

12 percent of the US market audio side

but what we’re doing so different is we

we have our own design house we’re able

to create some really cool incredible

product so here’s like design house

something inspiration about what we can

do we have like some instruments 3d

printing rapid prototyping these team is

designing some characters in 3d this is

a game it’s interactive learning

in China a lot of factories are very

traditional so this is also very new

model the CEO he tried to drag this

model and since since 2005 they are

producing now for 45 brands mostly

international and mostly in u.s.

homogeneous redownload you light all

away like Arlene Selena you get

requested yeah sure c’est la montaña la

siroque well are you got your puppies

young in second of things young near

near on with the eager young doctor

transition hundred keep out our through

the engine torsional dumping down in

suicides with impunity Montana woman

three-decade humble Sarah no matter made

this ensure you know most people don’t

realize that that leaves 26 percent of a

technology from Silicon Valley actually

converse in jail so what they do is they

hire kind of like a headhunter so to

speak because there’s so much innovation

we are about minimum of a month to a

year advance when it comes of technology

for example we have a this incredible

bed you can sleep on there and the

moment you wake up in the morning you’ll

give you stats how many time you roll

over how much Steve how much rest you

and then also can read your blood

pressure you can kind of tell you you

have any problems we identify and this

is technology existing range today and

we’ve done this almost two years ago

no mom the way life is routine how we

can cure and there should be a tissue

should be a submissive on nightly that

he was thinking how how would you own

the typical careers and kissing eg girl

went to the TCP mom making I don’t know

trying it work we said like 25 percent

of innovation creative engines then are

by by the American say by it go to us

and then they sell it here one of the

time more expensive

china feel little bit bored I think

about this business model we made it

here but all the credit is are is for

some somebody else in only know

sundered kinship shouldn’t in here by

Kentucky attend to you son who are

partial she go to the artery function

she go in Oviedo you sent him Papa even

hit Lang hit single everybody is looking

for the Chinese thought up made in China

want the proof to show to the world like

look we innovate we have a lot of

opportunity here I think all focus

should be let’s create a quality product

and you could be proud and say this is

made in China so if you can just focus

on that new technology to focus on a

branding and to focus on equality and I

think with the next five year people

have different perspective of made in

China I think that will happen

so remove a show without rehearsing

genuine cocoa powder ginger part of so

you go to your city I thought you go are

you sure doctor you go to 301 to show

you’re cool quarter moon landings which

of the fufu she’s in Kaikohe o’clock –

so a come here Center saw cinder the

queer chief come here to go

Thomas eclipses Fiat dealer to the

conquer Shabangu a similar are known in

the pattern our children

– Jen Emilio Rudy drink Oh cocoa engine

firm in the room together our chair or

dripping

a cioppino tree being damaged sensor

ginger report Scylla person today I’ll

teach you he lived in your partner

toting what has happened in Shenzhen

within 35 years of time its uniqueness

is fading because those same innovation

say policy innovation or industry

innovation now it’s everywhere in China

so it doesn’t have that edge of being

the only one or even the first one

anymore it’s kind of a catch-22 right it

recognizes what it’s been able to

achieve but it’s also inherent like how

are you gonna make it better

[Music]

people who come to Center and get older

and as the experience grows the start to

develop something near as a

manufacturing they become engineers

become brands

meanwhile the the government is pushing

out manufacturing to the outer area of

some gel to the cheese that you see it

IPC ahold of Ottawa to Mata just on

Michelle said she co 30th intensity and

the density shows the GDP insanitary

pianola the Mayo student Richard II by a

spot with an impact the internals and

God feels amazing values amazing thought

your meeting room that you just Italian

or social network UPI ordinary at our

time a lot of confusions is happening

right now

what I’m going to do what’s next should

I invest in branding or I just cause my

company I think it’s a perfect moment of

innovations because I can attract at

least our portion of them to put the

resources to innovate something new path

to do you in fact Goods and good at art

often a good job or two she hadn’t

potential signs that touchy thoughts

agility about oxygen consumption to

direction behind the gentlewoman tried

to the center the East Asian that’s how

he can play some piss on that

Charlie Rogers Hollow now that I’m at

Express tiny pizza Hamish is on my

education credit or suta Rajesh chharia

situation we are seeing occur in the

city Costra Pogo so it supported the

imagine Tom Allanson inclusive higher

unit and your initiative Sakai vida loca

little concern to the qe2 ten calculus

Aria most attention to the peel core you

– Sonya Luigi Orton about European woman

I’ve seen a change in the way the

innovation

this fantastic number of Chinese

startups the doing really really good

products Chinese thought ups are getting

better because they want to learn from

Europe if you go to a conference with

innovation speakers from from France or

from Germany or from England or whatever

most of the people will be Chinese in

the room

so what to learn Konoha was from treaty

term Georgie to you to determine the

natural synthetic unity in Genova

through what is entitled I a sensor love

coagulant converges exactness Antonia

duty or DeFranco consent agreement is a

yonder she stands a possessor ego pans

sansa seeds of ginger

Santa Fe two kings talkin virtue

defendant innocent Johanna although it

is a true what she wanted to achieve in

the past twenty years everybody who

wants to make in a Silicon Valley has to

go through this very tight and small

selection process by a small group of

people who what a venture capitalist

young white males between twenty to

thirty controlling how technology orbit

about how technology will be a-prime and

how technology will be available to the

general public that is the very

definition of control kana me they’re

ready to have like these massive

settlement fights and epic legal battles

I call their Supreme Court and stuff

like that if everyone were like you know

actually we all do good job let’s just

work and try to figure out how to

innovate but it’s a matter of getting

critical mass of people to buy into it

without a big brain dictating what kind

of feature we can have the sentence

system is catering to everybody’s knee

it’s not a small group of people who

determine I guess develop when and how

right now we are still at a very early

stage of this open source however moment

if we trace back to the late 90s the

open source software test got started I

mean Bill Gates was speaking publicly

about how open source is communism and

it will destroy the software industry

and hey today Microsoft is one of the

most supportive of open source and even

open up the entire Windows 10 if the

history of open source software is used

as a benchmark we are pretty much five

years away from this being discussed in

mainstream it’s a mindset change but the

future is possible

you talked about you know China’s

authoritarian there’s strong rules and

all sorts of stuff

people here have developed a way to

coexist with the rule of law and the way

life needs to run they sort of looked

the other way at the right times I think

when things need to happen this is how

we’ve managed to make sure that everyone

gets fairly compensated or one’s fairly

rewarded and it works through this

system there another thing to be clear

as a thirteen doesn’t mean evil right

it’s just that there is one Authority I

mean the Communist Party knows as well

as anyone else that they have to keep

the people happy they’re not just going

to like kick people around because they

want to and they want to be trivial and

small about it so they try really hard

to put economic policy in place that

brings prosperity one of the things that

the government has said as we need a

service economy that’s tech oriented and

we need to get more young people

interested in this the maker movement we

want to graph that into our system and

hopefully inspire another generation of

young people to want to become you know

hard-working factory owners and

employers and innovators like their

parents were and and now there’s even

like little maker spaces in cafes and

innovation labs like popping up left and

right

[Music]

Saguna territory guru – guru me Xena

Yamaha Chula Quanzhou

Carlito Python Chile Chilean a you go

Louie in de Indias Saturday nuclear and

Italy usual high in dialect Roma cafe

playin da de la palma cafe event

tomorrow officials I truly enjoy open

ocean ocean and natural psycho different

from Holyoke or punctual in church on

Lido Johanna Norman calle de nadie NOS

audiences I imagine chittering Union

rika-chan Tony Julie Organians outdoor

treatment Ronnie event entrancing

Julianne junk food I food truncation oje

quiet Cholula – so Jody and Sango Yi

robot chanel Coco I prefer the term

fatale attrition tertiary furniture

booty NGO job or components what a

dollar on one hand it’s great that the

national government have seen this

emergence of new media new technology

and I think it’s genuine to want to

support it

however I don’t think there’s a very

good track record so far of governmental

involvement in these more bottom-up

activities we take for example art

districts something that was emerging

out of China 1020 years ago that really

caught the imagination of artists

colonies galleries but as soon as the

government and started to support it the

inevitable process of gentrification

happened rent went up more notable

galleries moved in so the artists who

really were trying to experiment had to

move out so I have a concern along

similar lines for these tech sectors the

government in trying to support it

inevitably will formalize it

[Music]

it’s interesting to sort of see the city

evolve and so there’s a sort of wave of

money in gentrification you can sort of

rolling from the you know from the east

to the west from the south to the north

the pace at which they do is just crazy

you can walk from one end of the state

to the other and by the time you walk

back the other side enough to say will

change you won’t recognize it it just

it’s just tearing itself down and

rebuilding itself as you walk through it

there’s a region over there that was all

these electronic shops they just leveled

it put up a luxury mall and put a

high-rise on top of it and you wouldn’t

recognize it I mean we have more

high-rise here to any way in the world I

mean honestly if you walk on a sensor

right now we have over two hundred

seventy eight buildings being built up

to 74 I travel all over the world and we

look everyone else I hate you know we

are the fastest growing you know society

around the industry today that’s just a

fact

in China there is a general lack of

awareness of the negative ramifications

of gentrification just as you know in

the 60s no one in New York thought that

was a bad thing the reason why the city

has embraced this notion new technology

is trying to reinvent itself

my concern is that industry invention it

wants to very quickly rid of its even

immediate past a city that really

struggled really was dependent on a lot

of things the government couldn’t

provide but things happen by chance

accidentally a lot of it was bottom-up

in fact there was not one fishing

village there were 2,000

[Music]

these villages have evolved along with

the city they have taking up very

important roles in providing housing

providing a certain social structure

jobs a certain stability to the city

that was not planned

they simply evolved with the formal city

I would like it more like a you know

sort of the bacterial colony as a petri

dish eventually you grow a lawn of

bacteria across it you know all the

communities become interconnected but

that that’s sort of a natural growth

curve

[Music]

we are in by Sciuto which is one of the

300 more than 300 of em village in

Shenzhen and here like no matter what

you don’t need to go anywhere and you

can find everything here that’s the

amazing part of this it provides

everything you need for a community when

the government designated engine as a

special economic zone they left patches

of land for the villagers themselves to

build homes this is a boundary line

between the city and the urban village

this side is open oh man and this is

urban village owned these urban villages

are also breeding ground for a lot of

innovation you can change a structure

you can change the facade you can spill

your workshop into the alleyways the

whole neighborhood was built in this

kind of bottom-up way Shenzhen really

represents a new modern image it’s a

modern city it’s a new city the urban

villages complete opposites to that

image the mayor’s office declared the

necessity to rid the cancers of the

society in those words

I should go is going to be redeveloped

this month actually April 2016 so this

is how fast 150,000 people’s who lives

here needs to be relocated this there’s

some rumors that like the market here is

eventually going to have to be displaced

because as things gentrify the rent on

the shops are going to go up to the

point where they can’t sustain selling

these like small parts and whatnot

just across the street there’s much more

urban village going on that’s that’s

where I headed to and I can’t say if

it’s for better for worse but it’s

definitely things are changing and so

you turn this and straight out of like

the market into you know urban village

area like this personally I have a bias

I hope that it never goes away because I

enjoy it so much and it’s such available

resource to me you’ll see big districts

where people are taking phones and

tearing them apart and then another area

putting them together into another phone

of sort of recycling and upcycling going

on so you can see like down there

there’s a person there with a what looks

like a pile of trash but if you look

closely it’s just that they’re going

through mobile phones and stripping out

parts from them it’s like sucking core

and almost

we’ll just take a quick walk through one

of these informal areas

my phone

cycle parts he actually has bigger

bundles and other boards that he’s

pulled out of phones that were

previously thrown away and then what

they do is they they take out the

motherboards and they take the chips off

and eventually find their way back down

the market you can get your like roast

pigs feet and then iPhone cases this

market itself plays a kind of a critical

part in the ecosystem in terms of being

able to move goods around you know if

one factory did a build and they had

some excess then they want to get rid of

it a lot of it will come through this

market and get recycled through the

system this one some straight from the

factory floor you can see that the

motherboards are even still in the the

carrier so this one was one that even

pass out of Apple fully fabricated and

it found its way in the scrap heap here

well people will go ahead and they’ll

you in really see they’ve pulled off

some ICS

for recycling and reprocessing into

fixing phone and so forth and here’s a

these here are blank motherboards in the

internet mothers you see like no solder

on at all they sell a gold color which

means that there’s been no processing of

the board at all it’s straight virgin

boards from the facility you’re gonna

move on we’re getting a crowd

I can get plenty of useful stuff for a

fraction of the price that you would

have to even in the markets you know on

the Main Street that’s the stuff that’s

going away but those guys will innovate

no matter what they innovated despite

the government right they’ll be building

them but they’ll keep walking and they

may have cut a path that looked

interesting and that path is now being

paved into the road they’ll cut another

path you you you’ve never had a fox run

over by a steamroller when they’re when

they’re putting a road over a forest the

Fox know how to move away right can it

can run and find another place and as

long as there’s continuously green

fields for these people to go to I think

I think things will be okay and

demilitarizing the the Western earthly

ecosystem would be great right I think

that’s something we can do right but

it’s just as hard as bring us back from

the brink of the Cold War everyone has

to sort of ease off universally agree

that we need to have a new paradigm and

I think one of the problems in doing

that is that the militarization of IP

has really benefited big companies and

if they back off their stance of having

huge caches of IP to nuke the little

companies that come up they’re

threatened by innovation and so instead

of seeing like this openness come out

you’re seeing exactly the opposite

you’re seeing the system calcify and

maybe will happen and is like you know

sure they’ll own their edifices but you

know they’ll become so entrenched that

they can’t move on right each of them is

locked in their space and then a very

flexible ecosystem like China will just

roll over them later on and they’ll

wonder how that happened it’s because

they did it to themselves at the end the

day

the beautiful insulting things will come

here with the talents with your efforts

that your intelligence you can earn a

place for yourself

the makers the our startup the Internet

of Things producing power

they all converge here in Shenzhen and

that’s what makes sense and the second

value of power to the pump into the game

product yeah

what Shenzhen Santa Indiana that hasn’t

yet fully that has to be in a different

domain using the tifu Sandra and Tino

Rodriguez in Doha to go Lisa Jaguar

you go see the live stream you one more

drive each other oh now you look at this

light switch

are they straight every five-star hotel

every way in China right now this is a

probably gonna identify this is a

perfect example if we can just have a

person take two three seconds to just

make that adjustment China will be a

perfect place detail are they going to

be more like the UK in the sense that

they’ll just shed the manufacturing

background as they gentrify and and sort

of just go straight for like you know a

service economy or will they keep rooted

in a sort of a manufacturing ecosystem

and keep designed parallel to it or will

they just forever stay in manufacturing

right is that really just their their

core base and valuing with

where they want to be I mean if China

went from where they were to where they

are today in 30 years they could do that

again 30 years so within my lifetime we

could see the incidence question would

be interesting to see where the answer

ends up

[Music]

[Music]

[Laughter]


WIRED UK

Future Cities, a full-length documentary strand from WIRED Video, takes us inside the bustling Chinese city of Shenzhen. Subscribe to WIRED►► http://po.st/SubscribeWired We examine the unique manufacturing ecosystem that has emerged, gaining access to the world’s leading hardware-prototyping culture whilst challenging misconceptions from the west. The film looks at how the evolution of “Shanzhai” – or copycat manufacturing – has transformed traditional models of business, distribution and innovation, and asks what the rest of the world can learn from this so-called “Silicon Valley of hardware”. ABOUT FUTURE CITIES Future Cities is part of a new flagship documentary strand from WIRED Video that explores the technologies, trends and ideas that are changing our world. Subscribe to the WIRED YouTube channel to ensure you never miss an episode. HOLY LAND: STARTUP NATIONS (SERIES 2) Premiering in February, the second season of WIRED’s Future Cities series takes us inside one of the world’s biggest startup nations. With the most tech startups and venture capital per capita in the world, Israel has long been hailed as The Startup Nation. WIRED’s four-part series will look beyond Tel Aviv’s vibrant, liberal tech epicentre to the wider Holy Land region – the Palestinian territories, where a parallel Startup Nation story is emerging in East Jerusalem, Ramallah and the West Bank, as well as in the Israeli cybersecurity hub of Beersheba. And we will learn how the fertile innovation ecosystem of Silicon Wadi has evolved as a result of its unique political, geographical and cultural situation and explore the future challenges – and solutions – these nations are facing. CONNECT WITH WIRED Web: http://po.st/WiredVideo Twitter: http://po.st/TwitterWired Facebook: http://po.st/FacebookWired Google+: http://po.st/GoogleWired Instagram: http://po.st/InstagramWired Magazine: http://po.st/MagazineWired Newsletter: http://po.st/NewslettersWired ABOUT WIRED WIRED brings you the future as it happens – the people, the trends, the big ideas that will change our lives. An award-winning printed monthly and online publication. WIRED is an agenda-setting magazine offering brain food on a wide range of topics, from science, technology and business to pop-culture and politics.

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