Prepare carefully for reverse innovation

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    clpstaff &clp articles

    Foreign investors are increasingly sponsoring research and development in China. But before the resulting technology can be exported, sponsors must pay close attention to new rules, and must always register their intent

    China, with a large talent pool of high-calibre scientists and engineers, is transforming itself from being a low-cost manufacturing hub to a world class R&D centre. This transformation will accelerate as reverse innovation gains greater universal acceptance as the new business paradigm. As a result of this paradigm shift, more individual researchers and research labs in China will be under contract to conduct technology-related research with the expectation of exporting the resulting technology from China. Sponsors of R&D projects in China, however, must take pause to think through the impact of China's new technology export control rules on their project's exit strategy and business objective: securing unfettered rights to use the resulting technology outside China.

    Laws regulating technology export

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