Huawei is investing $22 billion yearly for R&D and Innovation
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
An expert recently said that Huawei heavily invests in R&D not because it is willing to do so, but to keep pace with innovation. The company is at the turn where it cannot think of cost-effectiveness for its growth. It needs to rely on innovation.
Liu Ke – the dean of the Innovation and Entrepreneurship School says that China used to compete on cost-effectiveness in every business. Although certain factors like the U.S. sanctions, lack of techs, and more have affected the country a lot.
Chinese people can no longer rely on budget-friendly strategies as costs are unexpectedly rising in all aspects. The same applies to major tech giants like Huawei.
The expert added that Huawei has been investing around $22 billion (164 billion yuan) in R&D (research and development) to lead in the innovation race. Even if the company is not willing to spend this amount, it will have to as there’s no other option.
Liu further says that if Huawei doesn’t spend this much amount in R&D, it may fall behind in a few years. The Chinese OEM makes these investments to remain competitive in the market and boost innovation in every possible manner.
“Why does Huawei spend 164 billion yuan a year on research and development? It’s not that it is willing to spend this money, but if it doesn’t spend this money, you may fall behind in a few years.” – said Liu Ke.
Huawei is investing $22 billion yearly for R&D and Innovation: Expert (Image Credits: Weibo)
The expert noted that investment in innovation is directly proportional to constant trials and errors. It needs a lot of determination, patience, and social investment. This is why, enterprises are referred to as the main body of innovation.
This investment will eventually lead to a new quality productivity which is a deeper, comprehensive, and in-depth reform of society. The next five years are quite significant for companies like Huawei where they have to keenly focus on innovation.
“Because in the end, all difficulties must be solved through innovation.”
Huawei R&D investment
The Chinese tech maker is constantly increasing its R&D investment every year. According to previous inputs, Huawei spends around 10-20% of its sales on R&D for communication, AI, chips, and other major aspects. It also has a significant portion for smart cars and other products.
Huawei will likely increase this investment in the future to remain competitive in the consumer market. Although the increase in investment amount would be worth looking forward to.
Reference Link:- https://www.huaweicentral.com/huawei-is-investing-22-billion-yearly-for-rd-and-innovation-expert/
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
