Beijing may surpass Silicon Valley as the cradle of global technology innovation in the next five years, according to Travis Kalanick, a Silicon Valley pioneer responsible for pushing higher Uber Technologies Inc.’s valuation on the Standard & Poor's 500 Index, and for raising more than $8 billion in the latest funding round for the ride-hailing company's unit in China.
China Daily reported that Kalanick made the remarks to reporters during the "Geekpark" conference held recently in Beijing.
The Uber chief executive, who is overseeing Uber's battle against Didi Kuaidi, said that the growing number of entrepreneurs in the country will eventually surpass those that have made the Bay Area into a global technology innovation hub.
"In the next five years, there will be more innovation, more invention, more entrepreneurship happening in China, happening in Beijing than in Silicon Valley," Kalanick said during the conference. He said that the activity will in turn spur Chinese corporations to go global and open up to entrepreneurs from overseas. "We gotta play our A-game in order to compete with the best."
According to the report, Kalanick's view may be similar to those who consider the country as the birthplace of some of Asia's largest and most recognized technology corporations, from social media and gaming giant Tencent Holdings Ltd. to e-commerce leader Alibaba Group Holding Ltd.
In addition, these companies, like search-engine operator Baidu Inc., have invested and nurtured several startups and online services whose scope and scale have exceeded those in the United States.
According to Preqin Ltd., a London-based consultancy, many investors have begun to take notice of this as most of the biggest investment deals took place in China and India, which more than tripled to $16.9 billion in the third quarter, slightly below the $17.5 billion invested in North America as of Oct 1. In China, venture investors have closed 1,016 deals up to the third quarter of 2015, more than in all of 2014.
The report said that some of those investments went to Uber China, raised about $2 billion from Chinese investors last year.
Kalanick also told reporters in a group interview that he needs a Chinese chief executive officer to oversee Uber China.
"I'm really attached to the job now. It's where all the action is," Kalanick said. "I'm holding the bar at highest level. Until we find that perfect person, I will be serving as Uber China CEO."
The report added that some foreign companies doubt the innovation made by Chinese companies, as a week before the Consumer Electronics Show in Las Vegas, a Chinese company making one-wheeled skateboards was raided by U.S. federal marshals and the wares were confiscated for alleged patent infringements.