The future is in China…
Huawei’s R&D Pot Rivals Western Firms’
10% of its $11 billion in sales, and 48%, or 60,000 of its staff are involved in R&D. Labor cost in China is so low that the $1.1 billion in R&D is equivalent to ~US$4 billion. In comparison, Cisco spent about $4 billion on R&D last year, and Nortel $2 billion.
Undoubtedly, Huawei is a leader in China’s push to become a global player in commercial markets but Xu doesn’t accept the company is a champion for the country. He looks further ahead, insisting Huawei is an international entity, citing the employment of Western management consulting services throughout the late 1990s as a sign the company is conducting business on an international level.
on September 12th, 2007 at 12:58 am
And that is why there is no money in R&D.