Shanghai government will encourage local enterprises to set up research and development (R&D) centers in other countries and regions to improve their competitiveness in international markets, according to Shanghai Science and Technology Commission.
"By having a presence in countries and regions with more advanced technology, enterprises will be able to keep abreast of the latest technological trends, thus sharpening their competitive edge," said Zhu Jiping, director of the commission.
For example, information technology firm Shanghai Wonders Information Co Ltd has won approval from the central government to launch an R&D center in the United States.
Shanghai is striving to create a world-class city and economy. However, its R&D capabilities still lag behind those of developed countries.
"To be real international players, our enterprises must go out and work in the most highly-competitive market places," Zhu said.
He added that the overseas R&D centers would also help companies better understand the market there.
Earlier reports said the municipal government expected 500 more Shanghai enterprises would expand their business and invest US$1 billion abroad by 2005, almost double the amount invested in 2002.
But Zhu concedes that while foreign multinationals have built over 80 R&D centers in the city, it will be a long time before domestic firms match their performance abroad.
To accelerate the process, he said large companies would receive some preferential treatment.
Technology has become the major driving force behind the two-digit growth rate in Shanghai in the past 12 years. Statistics show that hi-tech industries contributed 51 percent of the city's industrial output, of which foreign-owned companies contributed a significant part.
Attracting more R&D centers is important for Shanghai's bid to become a real international city.
Shanghai Science and Technology Commission expects that in addition to the current 80-plus centers, 40-50 more first-class research institutions from home and abroad will be set up in the city by 2004. Meanwhile, the government will also consolidate and upgrade existing research bodies into world-class R&D centers. The key areas for attention include micro-electronics, computer technology, biotechnology, new materials and integrated circuit design.
(China Daily February 13, 2003)
