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A YRD "Going Out" Case Study (5): Technological Collaboration to Beat Global Market
16 October 2014
Although China’s electronics production ranks first in the world, mainland electronics players still seek to collaborate with foreign partners in a bid to keep abreast of global technology developments and enhance their research capability. As the key technology marketplace in the region, Hong Kong not only attracts international electronics enterprises but also has extensive connections with the mainland and different parts of the world. Its legal system and intellectual property protection have also gained the confidence of mainland and overseas enterprises. Meanwhile, the professional services available in Hong Kong, such as risk assessment and financing for technological cooperation projects, can effectively help mainland enterprises “go out” in search of the technological know-how they need.
Technological innovation is of utmost importance to the electronics industry
China has become the world’s electronics factory, with its current manufacturing activities accounting for some 30% of total output value globally[1]. It is a major producer of a wide array of terminal consumer electronics, including audio-visual equipment, computers and mobile phones. However, as technology advances and in light of the rapidly moving consumer market, even leading enterprises have to constantly expand their technological research capabilities and launch innovative products in order to remain competitive and maintain their market position.
(photograph provided by China Electronics Panda)
The China Electronics Panda Group, headquartered in Nanjing, ranks high among China’s top 100 electronics enterprises. It holds the titles of “China’s vanguard information technology industry enterprise” and “national technology innovation model enterprise”. It also has a few subsidiary companies in Hong Kong handling import and export business. China Electronics Panda continually looks to strengthen its technological exchanges and cooperation, while sharing its technological achievements with industry players both at home and abroad. This is in order to keep up with the latest technological trends as well as the commercialisation of its technological achievements.
(photograph provided by China Electronics Panda)
China Electronics Panda also participates in technological collaboration projects with electronics enterprises in Hong Kong and overseas. These projects mostly revolve around the group’s core business, particularly with regard to new style display panels, smart TVs, lighting, industrial automation equipment, transport electronics, energy saving and environmental protection equipment, and a wide range of electronic components. Other areas of collaboration include joint development, technology application, marketing, and the procurement of all kinds of high-end, high-precision components and related raw materials.
Currently, China Electronics Panda is engaged in technological cooperation projects with the US, Israel, France and other European countries, some of which are negotiated through Hong Kong. The group’s spokesperson said: “Exchanges and cooperation with advanced technological enterprises are very important to our future business development. Hong Kong, with its extensive networks with the mainland and different parts of the world, facilitates our search for information on the latest technological development and cooperation partners. In addition, Hong Kong has a pool of technical talents well versed in foreign cultures who can provide support to technology import, help facilitate communication with foreign industry players, as well as conduct risk assessment of the projects involved. The availability of various financial services in Hong Kong can also effectively provide financing arrangements for related technological projects.”
Hong Kong is a technology marketplace with a good reputation around the world. Key factors contributing to this status include a sound legal system and strict compliance of industry players with international business practices. Moreover, Hong Kong’s industry players exercise good ethics and attach great importance to commercial confidentiality, from design and technical information to other intellectual property rights. As such, mainland enterprises using the Hong Kong platform for technology transfer, licensing or other technology collaboration with foreign counterparts can effectively dispel the concerns that foreign investors have with regard to maintaining intellectual property rights and other legal protection issues. This ensures that the mainland enterprises can confidently “go out” in search of any needed technological know-how.
Remark: For more information about China’s “going out”, please refer to the research article Jiangsu/YRD: Hong Kong Service Opportunities Amid China's "Going Out" Initiative and the research report China's "Going Out" Initiative: Jiangsu/YRD Demand for Professional Services of the HKTDC Research
[1] Source: Yearbook of China Information Industry; The Yearbook of World Electronics Data
- Technology
- Electronics & Electrical Appliances
- Mainland China
- Hong Kong
- Mainland China
- Hong Kong
