Major technology companies around the world enter into China to establish research centers, take advantage of the unique situation of China’s rapid growth and a large manufacturing base, and picking the talent of the largest universities in China. SAP, the leading provider of application software in the world, recently entered China to establish one of its exclusive technology research centers, SAP Research. Although this division has successfully established in Germany, the Chinese labor and the business environment remains difficult market to navigate foreign multinationals. Foreign companies often have problems ranging from the difficulty of finding innovative in a competitive pool to address staff turnover with an aggressive focus on talent compensation. It is feared that the location in Shanghai, far innovation universities home and technology research centers set up shop in Beijing was the wrong choice for SAP in China. What would it take to win the war for the great Chinese doctors in the competitive job market? What would it take for SAP China Research to be a key contributor to the global innovation network of SAP? This case illustrates the opportunities and challenges of research and development (“R & D”) globalization and familiarizes students with the unique challenges of R & D strategy, strategies for entering new markets, management human resources, innovation, consolidation and protection of intellectual property in the rapidly developing countries. In particular, this case is relevant for studies of R & D globalization, companies from China and talent management.
Source: University of Hong Kong
Date Posted: February 19, 2009. Prod #: HKU817-PDF-ENG
SAP: Creating a Research Center for China in the solution