Like other fast-growing technology powerhouses such as India and South Korea, China has a large supply of well-educated and highly qualified professionals in computer programming, data processing and telecommunications, which is why firms like Microsoft Research Asia (MSRA) are scoping out the terrain.

"Doing basic research requires a lot of very talented professionals," says Zhang Yaqin, MSRA's managing director, who will also formally assume the position of vice-president of Microsoft in charge of mobility business later this month.

The global outlook that came with WTO membership has taken firm root in China in the past three years and has inspired many domestic as well as foreign enterprises operating in China to widen their horizon and commit to longer-term planning and development.

This trend is expected to gain even greater momentum in 2004 in keeping with the quickening pace of market opening.

Though there are still lingering concerns in the minds of many foreign technology companies about shortcomings in the protection of intellectual property rights, the growing advantage of China as a technology base is difficult to ignore. And the talent pool has served to attract them.

"That's why Microsoft decided to set up MSRA in China," explains Zhang. "I am very impressed with the quality of Chinese professionals who have joined us in the past years," he adds.

Many of the Mara's recruits are from top universities and technology institutes in Beijing, Shanghai and other major cities in China. Among staff members at MSRA and the Microsoft Advanced Technology Center (ATC) are also professionals who have studied and worked overseas, Zhang says.

When it was established in November, ATC, which was also headed by Zhang, advertised postings for 100 researchers. It received more than 10,000 applications not only from across the country but also from abroad. Among the applicants, many were holders of PhDs and other advanced degrees.

MRSA, itself, has made rapid progress in the past five years. Its research team has grown from a few members to 170. The organization has published a total of 700 articles in some of the world's most revered science journals. A total of 72 technologies developed at MRSA have been integrated into Microsoft's products, including the company's tablet personal computers, operating systems and the Xbox gaming devices.

These achievements have won the admiration and support of Microsoft's top management, which has more than doubled the investment in MSRA from the original budgeted outlay of US$80 million. Zhang's promotion was announced in early January and will follow in the footsteps of his predecessor, Li Kaifu in a couple weeks" time.

The leadership at MSRA and ATC has been passed onto Harry Shen and Zhang Hongjiang who have said that they aim to develop Microsoft's research organizations in China into world-class factories of ideas and innovations.

"Although we do not intend to make any major changes in our direction, we are going to focus our efforts on mobile computing and embedded devices in line with the industry's overall trend," hen says. The emphasis of MSRA research work will be on wireless networking, next generation multimedia, user interface and digital entertainment, he says.

When asked about MSRA's longer-term prospects, Shen points to the development of Microsoft Research in Redmond, Washington as a reference.

That facility had a staff of 150 scientists, about the same number as at MSRA, when it was in it's fifth year of business in 1996.

Now, the number of scientists working there has increased to 450. So it seems, the quest for talent at MSRA, which celebrated its fifth anniversary in November, has just begun.

In the past five years, more than 1,500 post-graduate students at major Chinese universities and technical institutes have completed internships at MSRA.

Most of them have either returned to their universities to teach and do research, or found work at other software companies in China.

In addition, Microsoft is providing assistance to 35 colleges in China in teacher training and the compilation of teaching materials. Senior Microsoft staff members also give lectures at those colleges on a regular basis.

Zhang Hongjiang, the new managing director of ATC, says that his organization is also seeking to play an increasing role in the development of China's software industry.

ATC's major function is to facilitate the technologies developed at MSRA into applications that are specifically designed for markets in China and other countries in the Asia-Pacific region.

Much like MSRA, it is also focusing its efforts on such areas as mobile computing and communications technologies.

The company has licensed its text-to-speech technology to Huawei Technology, a leading manufacturer of telecommunications equipment in China.

(China Daily January 15, 2004)