What is Internet of Things
The Internet of Things could be the next big technological breakthrough in the world can look forward to. This new technology that aims to link all the physical objects in our real life will play a key role in the next generation of information, networks and communication. Internet of Things of IoT has become a popular buzzword in the recent times. Now what exactly do we mean by this? Internet of Things broadly means that most of the daily objects of use in our lives can be uniquely identified and linked together through a network with various technologies, thereby sharing data and enabling interaction to make our lives smoother and more convenient leading to countless possibilities. Technologies like the RFID (Radio Frequency Identification Device), short range wireless communication, real time localization and sensor networks are playing a crucial role in the commercial implementation of this technology that links the physical and cyber space for individuals as well as corporate bodies.
Investment in China
Internet of Things brings with it opportunities as well as challenges. Though research and development about this new concept is taking place in most countries of the world. China seems to take the lead in this regard with the country, hoping to invest a whopping 5 billion yuan ($800 million) in the Internet of Things industry that is expected to grow upto to 500 billion yuan ($80.3 billion) by 2015 then double to 1 trillion yuan ($166 billion) by 2020.
China leading in developing Internet of Things
Since Internet of Things is the next big thing, waiting to be explored and tapped commercially, it is expected that it could require investments up to trillions of dollars. Competing with the developed economies, the Chinese government is pretty much surging ahead to encourage this new concept by treating it as an opportunity for domestic innovation and promoting it in every possible way including backing it by national policies. For example, special state-owned zones have been developed like the Chengdu Internet of Things Technology Institute in the Sichuan province that is developing a special health care system in which the villagers can simply step into a telephone booth sized “health capsule” for a diagnosis and a prescription from a doctor who is distantly located.
Till date most technologies were developed by the leading economies of the world with most of the Asian nations being followers who paid royalties for using that technology. However, for the Internet of Things it is a different ball game altogether. This time around, China is all set to lead the world with several factors favouring the Asian major. Firstly, China is in a position to invest more than any other country of the world. Secondly, China has an internalized and walled internet that allows it to monitor, control and censor usage and since the internet forms the basis of this technology, this is an important determinant in the successful implementation of the technology at all levels. Thirdly, China is no longer a low cost labour centre and is really hoping to build and create its own indigenous brand in the next generation of technology.