Leading technology companies from around the world compete to establish research centers in China, put China’s unique situation of rapid growth and large production site, and gathered talent from leading universities in China. SAP, the world’s largest providers of business software, to establish China recently after one of its exclusive technology research centers, SAP Research. While this division has at its headquarters in Germany, the Chinese labor market and successful busin … Read more »

Leading technology companies from around the world compete to establish research centers in China, put China’s unique situation of rapid growth and large production site, and gathered talent from leading universities in China. SAP, the world’s largest providers of business software, to establish China recently after one of its exclusive technology research centers, SAP Research. During this successful division at its headquarters in Germany, the Chinese labor market and business conditions remain difficult for foreign multinationals to navigate. Foreign companies often experience difficulty in challenges ranging from innovators in a competitive pool of talent for dealing with sales of people who have an aggressive focus on compensation. There is concern that locating in Shanghai, far away from the innovative hotbed of universities and technology centers that have set up shop in Beijing, was the wrong choice for SAP in China. What would be necessary to win the war for top-class doctoral students in the competitive Chinese job market? What would be needed for SAP Research China to be an integral contributor to SAP World News Network? This case illustrates the opportunities and challenges of research and development (“R & E”) globalization and exposes students to the unique challenges of R & D strategy, new market entry strategies, human resource management, innovation, clustering and protection of intellectual property is rapidly developing countries. In particular, this case is relevant studies in R & D globalization, the economy in China and talent management.
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from
Kuldeep Kumar,
Maya Kumar,
Markus Alsleben
Source: University of Hong Kong
27 pages.
Release Date: 19, February 2009. Prod #: HKU817-PDF-ENG
SAP: Establishing a research center in China HBR case solution

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