Tom Mullaney on Alphabets, Chinese Characters, and Computing
blog.lareviewofbooks.org
blog.lareviewofbooks.org
But as for it driving innovation? The way our QWERTY Latin input works now it is good enough whereas without an IME Chinese would have to type in Pinyin or use massive keyboard. So the incentive to innovate isn't as great but implying that will slow down Latin based IT doesn't really make sense.
They have the same input difficulties, but way longer to deal with them.
Nothing about the Chinese writing system is a driver for innovation. Chinese innovation comes from the economic boom and a big drive to advance.