1 © NOKIA FILENAMs.PPT/ DATE / NN Managing Nokia’s R&D in China Ramalingam Hariharan Country Manager Nokia Research Center, Beijing

1 © NOKIA FILENAMs.PPT/ DATE / NN

Managing Nokia’s R&D in China

Ramalingam Hariharan

Country Manager

Nokia Research Center, Beijing


Why are we here?

• China is the world’s largest mobile market by subscribers and the most dynamic one.

• China is a strategic country market for Nokia. China is Nokia’s second largest market in 2004. Nokia is already No. one supplier of handset in China and the leading supplier of 3G systems in the greater China area

• China is one of the 12 global R&D bases in the world. Our R&D operation supports both Nokia’s local and global markets


Beijing Product Creation - From Local to Global

• Beijing Product Creation (Beijing PC) was formed in September of 1999

• Initial purpose was to expand Nokia‘s capabilities to develop and localize terminal products for Nokia in China and Asia

• Now it is a key R&D site in the global Mobile Phones Business Group

• Designs, develops and delivers mobile devices for global market

• The ability to deliver China-specific products

• More than 40% of globally shipped volume in Mobile Phones Business Group came from products designed and developed by Beijing PC.


Nokia Research Center, Beijing

• Established 1998

• We do world-class research in our long term research projects and contribute to the local business through accumulated expertise

• Highly educated staff• 60 % hold master’s degree• 30 % hold PhD degree

• Based on local talents• Over 90 % of staff are Chinese nationals


Focus

• Research on :• Beyond 3G radio, core and IP networks and

their performance

• Multimedia Technologies & Applications• Research on Asian user interfaces• Chinese mobile applications and services

• Technology exploration in China and other APAC countries


Wide Range of University Cooperation

• Research cooperation with Chinese top level universities• Funding for university research• Research subcontracting• Scholarship, fellowship, innovation funds, equipments,

conference participantion sponsoring, etc.• Knowledge transfer, technical training• Symbian course delivery

• Joint national or EU projects

• Academy info exchanges

• Intern positions

• Joint Post-doc program


Learnings from Nokia’s Research


Resource or Research Center?

• Chinese research staff is still very cheap, • Person cost with overhead is only half of that in US or

Europe• However, price is not only that matters – Chinese staff

cannot be used only as a resource pool or resource extension

Well articulated strategy is important. What is the purpose of research unit in China?

• Nokia’s Research Strategy in China:• Much of the work have to be closely linked to Chinese

technologies, business or products in China• Large enough portion of work made in global projects to

ensure competence creation and transfer in China• Use created competencies to contribute to local

activities• Use local researchers to study China related topics

• Natural to do in China • Difficult to do from the global


Learnings

• Language/Cultural Issues• Difficulties in communications between Chinese and

colleagues in the west due to language and cultural differences

• Because of above reasons it is difficult to arrange efficient guidance from the global

• Guidance cannot be given outside China Guidance from China

• Risks with IPR• China is a tough environment what comes to intellectual

property rights protection• In fact over the years since our R&D came to China, Nokia

has not experienced any major R&D IPR protection problems.

• Chinese government regulators and local companies are starting to follow internationally accepted practice when it comes to IPR protection.


Inventions and Publications

• Researchers are encouraged to prepare inventions and scientific publications

• In average one patent application made per researcher annually

• The quality of inventions and publications is kept high through tight selection process


A Recent Example of Achievements

• World’s 1st WCDMA High Speed Uplink Packet Access (HSUPA) demonstration system

• HSUPA research in China started at 2001

• Implementation of demonstration system started at 2003

• Demo was ready in February 2005 and was shown in Cannes 3GSM congress and CTIA Wireless Conference in New Orleans


Summary

• Huge and dynamic market in China

• Develop and localize terminal products to Chinese markets

• Ability to deliver China specific products

• Have R&D capability for product validation, customer care and type approval that are always done locally

• Do research in areas both important in this region and topics of global interest as well.

• Understand research directions and new technologies in China

• Use Chinese talents to research technologies relevant to China

Documents

1 © NOKIA FILENAMs.PPT/ DATE / NN Managing Nokia’s R&D in China Ramalingam Hariharan Country Manager Nokia Research Center, Beijing