Cathay Pacific Airways set out to develop an on-line education service for its 14,000 employees in 29 countries, it scoured the globe, talking to all the multinational software companies. But it found the answer right in its own backyard. NetDimensions, a Hong Kong-based specialist in on-line corporate-learning programmes, was able to supply precisely what Cathay Pacific wanted without the huge charges for "customization" that U.S.-based vendors demanded...

...For too many in Hong Kong, R&D stands for "replication and duplication," not "research and development," jokes Joe Sweeney, an analyst at Gartner in Hong Kong. Although the government is now cracking down on Hong Kong's blatantly counterfeit software, many legitimate, successful companies are making their money by adapting other companies' software, not inventing their own. It's a respectable business model, but not one that leads to breakthroughs.

"The mentality has got to change"

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