Globalization of R&D: New Trend of Economy Globalization. Prof. Zhang Yanzhong Academy of Engineering Beijing, China January 24th 2005

Transcription

1 Globalization of R&D: New Trend of Economy Globalization Prof. Zhang Yanzhong Academy of Engineering Beijing, China January 24th 2005

2 Contents 1. Influence of Economy globalization on the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3. Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion

3 Contents 1. Influence of Economy globalization on the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3 Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion

4 1. Influence of economy globalization on the world developed countries Market expansion, Utilize cheap labor force: 1/10~1/5 Product localization: suppliers, materials Reduce cost, occupy market; Accelerate the flow of key elements, such as capital, products, technology, service, etc.

5 1. Influence of economy globalization on the world developing countries Introduce capital, train workers, Learn technology & management, Drive economy readjustment Affect the development of the national industries

6 1. Influence of economy globalization on the world China 180 Countries and regions invested in China 400 TNCs among top 500 invested in China (incl. 30 regional headquarters set up in China) List of top 15 nations/regions invested in China by 2003 Hongkong, China USA Japan Taiwan, China Virgin Islands Singapore Korea UK Germany France Macau, China Netherlands Cayman Islands Canada Australia Others Billion USD

7 1. Influence of economy globalization on the world China Foreign invest enterprises: 504,568 Contracted FDI: USD billion Executed FDI: USD billion. By the end of November 2004 &RQWUDFW)', ([HFXWHG$PRXQW FDI by 2003 Billion USD

8 1. Influence of economy globalization on the world China Total export & import value of FDIs: (In Jan.-Nov. 2004) USD billion; Growth rate: 41.8%; Billion USD / / / / Share of the country: 57.42% Amount of FDI Total amount of China

9 1. Influence of Economy globalization on the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3. Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion Contents

10 2.1 Drivers from developed countries Roots: Rapid change of world S&T and market; Faster upgrade of products; Shortened period of product development; Soaring R&D cost

11 Percentage of R & D over total cost % for software industry 20-30% for aviation industry 10-20% for automobile industry Results: Boost of TNCs R&D in developing countries Global strategies by a rising number of TNCs

12 2.2 Improvement of environment in developing countries Improvement in science and education Low cost intelligence resources, (3.5 million graduates per year in China) Local research Institutions Improvement of infrastructure: IT, Internet, communication etc.

13 2.3 Rapid development of TNCs R&D in China R&D organizations in China: 600 Accumulated R&D investment in China: USD 4 billion (by June 2004)

14 2.3 Rapid development of TNCs R&D in China Features Initially, focus on Chinese market s s special requirements, i.e. standards, rules and regulations, and language,etc. English Chinese 110V 60Hz 220V 50Hz

15 2.3 Rapid development of TNCs R&D in China Features Centered in high-tech and short life cycle industries: computer, telecommunication, medical, chemical, material and transportation etc.

16 2.3 Rapid development of TNCs R&D in China Features Localization of technical staff: 95.1%

17 2.3 Rapid development of TNCs R&D in China Features Location: Developed regions: 80% in Beijing, Shanghai, Shenzhen Beijing Close to universities & research Institutions; People s Republic of China Shanghai Guangzhow Development zones to enjoy favorable policies

18 2.3 Rapid development of TNCs R&D in China Features Strategic position: Chinese market oriented Global market oriented P.R. China

19 Contents 1. Influence of Economy globalization on the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3. Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion

20 3.1 For developed countries Benefits: Cut R&D costs Utilize local intelligence resources Acquire market information to develop new technology and products quickly Raise competition capability Problems: Intellectual property rights

21 3.2 For developing countries Benefits: Optimize structure and upgrade industry Attract more FDI and improve its efficiency Train local staff and attract overseas scholars Learn technology and R&D management Problems: Competition of high-tech talents Independent innovation and IPR

22 3.3 Effect on Economy globalization For developed countries: Utilize local intelligence resources, Cut R&D cost, Acquire information, Raise competition capability For developing countries: Attract FDI, Upgrade industry, Learn technology & management, For globalization of economy: Driver and " win-win win development

23 1. Influence of economy globalization on the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3. Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion Contents

24 4.1 Developed country measures Loose restrictions on setting up high & new tech R&D centers in developing countries Formulate policies to encourage the set-up of R&D centers, and the flow of capital, talents and technology to developing countries Assist developing countries to train talents and improve science & education level

25 4.2 Developing country measures Strengthen infrastructure: communication, internet, transportation, finance etc. Create good soft environment: to formulate favorable policies (tax x etc.) Laws and regulations to protect IPR and improve independent innovation capability Enhance talents training and improve scientific education and R&D level

26 4.3 Measures taken by Chinese government Exempt R&D organizations from import tariff and import linkage tax for their self-utilized imported equipment and other nonproductive equipment Exempt turnover tax for income gaining from transferring technology developed independently by R&D organization. Deduct taxable income of the year up to 50% of the actual expenditure on R&D, if which increased by 10% or over than that of the previous year Permit the import and sales of a small amount of high-tech products produced by parent companies for the purpose of market survey.

27 4.4 Measures suggested for UN Encourage developed countries to remove the restrictions on high technology transfer, and advocate TNCs to found R&D centers in developing countries. Bolster developing countries to raise S&T and education level, and imburse them to jointly found R&D centers with TNCs for a win-win result. Establish communication and negotiation mechanism, work out measures for a clear delimitation of IPR and set game rules.

28 1. Influence of Economy globalization on of the world 2. Globalization of R&D: The New stage of economy globalization 2.1 Drivers from developed countries 2.2 Environments in developing countries 2.3 Rapid development of TNCs R&D in China 3. Opportunities and Challenges of R&D globalization 3.1 For developed countries 3.2 For developing countries 3.3 Effect on Economy globalization 4. Measures to encourage globalization of R&D 4.1 Developed country measures 4.2 Developing country measures 4.3 Measures taken by China 4.4 Measures suggested for UN Suggestion Contents

29 Suggestion To jointly hold a Globalization of R&D Forum in Beijing in October 2005 by UN Trade and Development Organization, Chinese government and China Academy of Engineering. Friends from all countries are warmly welcomed to gather in Beijing for the discussion of opportunities and challenges brought by R&D globalization and to promote the new trend of economy globalization.

30 Thank you