Research On Huawei's Location Selection Of R & D Internationalization

As the economic globalization gets more enhanced,multinational corporations tend to operate R&D investment globally,which is R&D internationalization.For Chinese enterprises,the R&D internationalization is still at the initial stage.They have a certain gap between the developed countries' enterprises in the internationalization model.Therefore,it is urgent to explore the R&D internationalization model applicable to Chinese enterprises.Huawei,as an outstanding private communication company in China,began its exploration of R&D internationalization as early as 1995.Today,Huawei has 16 R&D centers and 36 joint R&D laboratories in the world to carry out innovation cooperation on a global scale.People from all over the world work together to advance technology.In 2017,Huawei's global R&D investment was 81.1 billion RMB,which accounted for 19.2% of its revenue,ranking sixth in the world.Huawei's success has provided new models and ideas for the internationalization of R&D in other Chinese companies.This article starts with Huawei's R&D internationalization process,entry mode,location factors,and location distribution.Based on existing data,it analyzes the location selection of R&D internationalization.This paper scrutinizes Huawei's R&D internationalization process and divides it into four stages: preparation,preliminary exploration,further development,and globalization.It also lists the landmark events at each stage and different characteristics of different stages.Afterwards,we analyzed Huawei's R&D internationalization entry mode.The article states that Huawei has taken three approaches: setting up an overseas R&D center,conducting cross-border cooperation with operators and local governments,and overseas M&A,and Huawei has been at different stages of R&D internationalization.Focus on different entry modes.Afterwards,the article summarizes the characteristics of Huawei's R&D internationalization: First,it gradually shifts from greenfield investment to cross-border mergers and acquisitions.Second,it conducts overseas R&D investment based on market demand.Third,it focuses on patent applications and actively participates in the formulation of international standards.Focus on absorbing and training international R&D talents.As to the location selection of Huawei's R&D internationalization,the article begins with the location factors and location distribution.In the area of influencing factors,the article elaborated seven influencing factors according to the host country level and the enterprise level,and concluded that Huawei's R&D investment in different locations was driven by different influencing factors.In terms of locational distribution,the article analyzes the developed countries and developing countries respectively.Developed countries include the United States,Canada,Western Europe,and Japan.Developing countries include Russia,Southeast Asia,Africa,and Latin America.Through analysis,we summarized three characteristics of Huawei's R&D internationalization location distribution.The first is that location distribution is dominated by developed countries,and the second is the transition from the developed countries and regions to emerging economies,and the third is to transition gradually from extensive R&D investment to refined investment.In the end,this article analyzes Huawei's R&D internationalization location choices,and proposes suggestions for Chinese companies,hoping to give some inspiration to private companies in China,so that they can be used for reference in the future.