Microsoft to launch Chinese innovation centre
Microsoft will establish an innovation centre in the south China province of Hainan, the first of its kind to open on the Chinese mainland.
According to a memorandum of understanding signed by the Hainan provincial government and Microsoft China on April 7 during the Boao Forum for Asia, both parties will cooperate to nurture the region’s software industry, cultivate talent and protect IP rights.
Li Guoliang, deputy governor of Hainan, said the government hopes to nurture an ecology-related industrial software chain worth 5 million yuan ($808 million).
Microsoft will also set up a Microsoft IT Academy in Hainan to train IT experts.
Ralph Haupter, corporate vice president, chairman and chief executive of Microsoft Greater China Region, said: “Microsoft is honoured to be in this strategic partnership with the Hainan government.
“Over the last 20 years, Microsoft has invested throughout the country as a part of its long-term commitment to partnering in developing an innovative, competitive and talented China. With comprehensive strengths in devices and services, from client to cloud, Microsoft China has the capabilities and is committed to supporting the Hainan government.”
Microsoft Group vice president Orlando Ayala said that Microsoft’s partnership with Hainan will help establish tropical Hainan as an international tourist destination: “Information technology and intelligent applications are playing an increasingly important role in developing more sustainable industries, including the tourism industry.”
Avi Freeman, partner at Beck Greener in London, said that China is not the “wild west” it once was in terms of respect for IP and technology, and that this move by Microsoft, backed by the Chinese government and coupled with China’s large population, could make China a more attractive place for technology companies to set up.
He said that changes to Chinese law over the last 10-20 years have made China more IP friendly, and that the Chinese courts regularly makes decisions that uphold IP rights.
“There used to be reputation where a Chinese court would only hold positively for a Chinese company, but that just doesn't stand anymore,” he said.
“China wants to attract inward investment, and recognises that you can’t attract high-value, high-tech inward investment unless you have a proper IP system – they go hand in hand.”
Microsoft Innovation Centres are technology facilities that allow government, academic and industry participants to collaborate on research, technology or software solutions.
There are more than 100 Microsoft Innovation Centres worldwide.
