There is no doubt that China has made remarkable progress in becoming an innovation-driven economy. The Global Innovation Index 2016 ranked China 25th in the world and first among upper-middle income economies. In this respect, China is once again a role model for emerging economies on how to effectively formulate policies and allocate resources to achieve national goals. As Chinese companies strive to climb higher up the innovation ladder, they should think about engaging more deeply with India in order to leverage its huge talent pool, as their Western counterparts have done for a long time.