International Law

Some Positive China Biz News - R&D

By Stan

Looks like the R&D sector is doing well despite the Big Slowdown. Nice article on this in Shanghai Daily, which includes not only great publicity for David Wolf, but also this nugget:

In an indication that it is looking to further expand its R&D operation, Dow is set to move into a new state-of-the-art facility in Shanghai in 2009. While its R&D staff has quickly grown to number 320, its new facility has the capacity to house up to 700 R&D staff and Dow aims to add 100 research staff a year, Kotanchek said. "I am very excited about 2009. Yes, the economy is not good, but that is when the best companies emerge," she said.

While acknowledging cost is a concern for many companies, Kotanchek said Dow decided to make its China move primarily because of the access to a large talent pool, proximity to a rapidly growing market and to forge long term links with universities and other research institutions.

She said the cost pressures, especially in North America and Europe, will drive firms to see where they can get most affordable work done.

The moral of this story is that we should not forget the fundamentals. No one knows exactly what will happen over the next 18 months or so. However, I am happy to bet long term on a country with a huge population/market, numerous excellent educational institutions, and a government that is prioritizing innovation. Timing is everything of course, but I like the fundamentals.

Full post as published by China Hearsay on December 03, 2008 (boomark / email).