China: Preferred location for Research and Development
Where is R&D going? China, of course.
Take a gander at the following article
- Sixty-two percent of global companies ranked China first “as the most attractive location for prospective R&D.”
- Multinationals have set up 1,160 research institutions by the end of 2007.
- Total revenue of the hi-tech industry (foreign companies) exceeded 706 billion U.S. dollars.
- Patent applications as of 2006 put China fourth in the world.
- And here is the kicker: 40% of those applications came from foreign companies.
Yes, yes, globalization will raise all boats. The only boats I see rising are the foreign companies in China.
Now, why is China the most attractive location for prospective R&D? You get one guess.
And who’s supposed to buy all this hi-tech stuff?
Uncle Sam: “Give him another tax rebate, boys. Put it on my tab.”
Do these MNC really believe that this technology isn’t eventually going to land into the products of China’s state backed corporations? A decade from now I can see the Davos headlines…”How we lost the tech lead to China”