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Why MNCs choose China as major destination for research?

(People's Daily Online)

16:25, July 04, 2012

The employees at the Alstom (China) Investment Co., Ltd. are very busy recently, preparing for the completion ceremony for the foundations of Global Technology Center for Alstom's Hydropower in Tianjin on July 11.

More and more multinational enterprises including Microsoft, Intel, P&G, HP, Sandvik and Yahoo! have established their research and development center in China and Chinese wisdom has become an important driving force in their global innovation.

Research institutions gradually became the "standard configurations"

In recent years, China's role in the global strategy of foreign enterprises is changing and transforming from production base to market focus and to the key research and development base.

“Research institutions are increasingly becoming the 'standard configurations' of transnational tycoons in China," a researcher said.

It is noteworthy that these foreign research institutions in China not only have an increase in number but also an obvious leap in quality. Many foreign research institutions in China have undergone a growth process from small to large and from scattered research to all-round innovation.

For example, when the P&G Company just entered the Chinese market in 1988, it set up a research department with less than 30 employees and mainly engaged in the localization of the P&G products. Now, the research department was renamed as P&G (Beijing) Technology Ltd. and it has become one of the innovation centers of P&G Company supporting for the global business and also the one covering the widest fields.

The Intel had established its research center in China in 1998 and became the Intel China Research Center 11 years later. It is one of the five innovation centers of the Intel in the world.

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