Six member companies of the US-based Industrial Research Institute (IRI), including Procter & Gamble (P&G), Motorola, Ford, Lucent Technologies, Delphi Automotive Systems and Kodak, shared their experiences on conducting R&D in China with 18 other IRI members during a four-day CTO (Chief Technology Officer) Forum which closed Wednesday in Beijing.

The IRI is a non-profit association composed of 270 international industrial and service companies. Its mission is to enhance the effectiveness of technological innovation in industry.

"About 25 of our member companies have set up R&D sites in China and the figure is expected to be double in five years' time," said Charles F. Larson, president of IRI.

China has a unique advantage over other places as far as R&D is concerned, Larson said. China's strong push toward a market-driven economy and impending membership in the WTO make it an excellent location for considering R&D.

China's favourable policies, such as tax preferences and land use regulations, as well as the abundant talent of its population and their technical resources also contribute to this trend.

"It is a win-win deal. Both the country and companies can benefit from it," Larson said.

"The objective of IRI's first CTO forum in China is to enlighten our member companies' R&D networks as to the unique challenges of managing their operations here."

Marcus Chao, president of Delphi Automotive System (China), said at the forum that extensive global R&D activities help to leverage global talents and technical resources, enabling firms to provide advanced technology and innovative products to their customers.

Delphi China started its technical programmes at the Delphi-Qinghua Institute in 1995.

Qinghua University, co-organizer for this forum, said it hopes to sell its strong R&D abilities to the world and draw more foreign industrial collaborators.

Qinghua is currently engaged in co-operative projects with five IRI members.

When asked what China, or Chinese firms, could do to maximize their potential during these crucial times, Larson replied: "Management practice is a key to success for China." He suggested domestic firms, regardless of size, should pay attention to and untilize university resources.

IRI aimed to improve the living standards in China by setting up such R&D sites, he said.

A second CTO forum in China is to be convened in 2001, perhaps in Shanghai.

(China Daily)