construction international innovation ability

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Construction International Innovation Ability——The Mode of Huawei Abstract After reviewing Huawei’s twenty years of innovation and development, Huawei’s unique model - the path of internationalization of innovation model, during the time of building its enterprise innovation capacity has been summed up. Huawei's international innovation is mainly in the ways of internationalization of technological innovation, international R & D personnel as well as its global network and partnership strategy. The advanced management system and low-cost guarantee the road of international independent innovation for Huawei. Huawei's internationalization and innovation will combine to create a new model of innovation capacity for Chinese enterprises. Keywords innovation capability; international; The Mode of Huawei; Independent Innovation 1. Progress of entering USA In 2002, Huawei started it business in US.

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Construction International Innovation Ability

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Page 1: Construction International Innovation Ability

Construction International Innovation Ability——The Mode of Huawei

Abstract After reviewing Huawei’s twenty years of innovation and development, Huawei’s unique model - the path of internationalization of innovation model, during the time of building its enterprise innovation capacity has been summed up. Huawei's international innovation is mainly in the ways of internationalization of technological innovation, international R & D personnel as well as its global network and partnership strategy. The advanced management system and low-cost guarantee the road of international independent innovation for Huawei. Huawei's internationalization and innovation will combine to create a new model of innovation capacity for Chinese enterprises.Keywords innovation capability; international; The Mode of Huawei; IndependentInnovation

1. Progress of entering USAIn 2002, Huawei started it business in US.But in 2003, a lawsuit about intellectual property between Huawei and Cisco kicked out Huawei from US market.Even frustrated, Huawei made the first agreement with Leap Wireless to help it set down CDMA2000 among northwest area in 2007. Oct. 2008, Huawei get the HSPA contract with Telus and Bell. Next years, it cooperates with CoxCommunications and Clearwire. Nowadays, it become one of the giant in global communication device market with the 15% market share which just less than those of Ericsson (33%) and Nokia-Siemens(21%).2. Technological innovationAccording to the basic rule of Huawei, the R&D budget can’t be less than the 10% of sales income per year. And among all employees of Huawei, R&D employees take 44%-48%. The abundant capital and labor support the path of internationalization of innovation model for it.Technical innovationoriented by international market demandThe R&D of Huawei is based on market. In this case, Huawei take actions including transferring 5% employees of R&D to marketing and 5% employees of sales to R&D as return every year; establishing innovation center with worldwide famous operators such as Deutsche Telecom, China Mobile, Vodafone,Telefonica; building lab for individual client and corporate client. With this orientation, Huawei not only realized future demand of costumer via current demand but also know further demand from costumer’s future demand- this helps it catch opportunities, act fast in the market and drive market.Integrated innovationFor some fundamental technology, Huawei get advanced technology

Page 2: Construction International Innovation Ability

through Consulting, imitation, purchase and cooperation. And then it innovate and integrated innovate in the technology based on the demand of costumers.