After a pause, Lin Qi continued to speak:

"In the new entrepreneurial system, I am most proud of the growth rate of annual investment in technology, which far exceeds the profits in marketing, shareholder dividends and so on...... Since the establishment of the company, we have invested a total of 40 billion US dollars in R&D budget, according to last year's investment of 15 billion US dollars, next year we will invest more than 50 billion US dollars or even 60 billion US dollars, by the end of this century, we should be possible to invest more than 100 billion US dollars in research and development!

It can be said that on this planet, there has never been a company that has invested so heavily in scientific and technological research and development as we have.

Even some old high-tech enterprises, such as General Electric, Edison's original invention factory, in its most dynamic period, invented electric lights, electric cars, movie projectors and many other world-changing products, once upon a time, GE was dominated by an invention genius like Edison, keen to invent and innovate as the company's core competitiveness. And now...... Although GE is larger and has invested some money in product improvement and invention, there is no doubt that this company is more inclined to use capital operation and management as its core competitiveness. From GE's continuous hiring of management talents, and the addition and subtraction of projects and mergers and acquisitions to increase profits, we can see that the company has lost its soul. Since this large enterprise has gradually focused on management and capital operation, rather than technological innovation, its disruptive products have become fewer and fewer, basically, relying on the brand reputation accumulated in the past, as well as the monopoly-level high-threshold technology mastered before to maintain profits.

I can assert that GE will still remain profitable in the future, but the long-term stock price will not outperform the market average, will not exceed the annualized return of the S&P 500 index, and even, the company's return will not exceed the return on the annualized interest rate of buying US Treasury bonds.

Similar to GE is IBM, and I can also foresee that in the long run, the return rate of such companies will be lower than the market average......

All of this kind of high-tech enterprises in the past, with innovation and R&D as the core, are now enterprises with management and capital operation as the core, and professional managers get much more remuneration than technicians, so I can conclude that this enterprise is not worth the investment, and there will be no low rate of return that exceeds the market average in the long run. Unless...... The stock price of such a company falls below the net assets and reaches below the net assets before the value of cigarette butt stocks is available, otherwise, there will be no investment value at all, let alone outperform the market. ”

For a moment, the entire company was silent.

After all, IBM and General Electric have always been regarded as industry models, and all kinds of textbooks and technologies are awesome from these companies, and you should learn from these awesome companies.

However, Lin Qi was a big rebel and directly proposed that these companies would be very mediocre in the future, which obviously made people feel that it would be difficult to accept for a while.

But this is the truth, the future performance of these mythical big companies is not only not comparable with companies such as Microsoft and Intel, but even the rising stars Google, Amazon, Facebook, etc., are also stepping on IBM and General Electric.

Not only can it not compare the rate of return with these star companies, but also compared with ordinary companies in the market, IBM and General Electric also appear to be ...... It's much worse than mediocre companies. The S&P 500 and Dow Jones indices represent the average market return, while the annualized returns of IBM and General Electric will not only be much lower than these indices in the future, but also far inferior to the returns of bonds, barely about the same as the GDP growth rate of the United States.

It can be seen that these giants who have ascended to the altar and are considered to have excellent and advanced management capabilities, huge moats and brand competitiveness, in fact, are already going downhill, completely eating their old capital, and continue to survive by relying on the customers and brand influence accumulated in the past.

In particular, it was almost a tragedy that IBM later began to hire Indians in large numbers in order to reduce costs. And the Indian population is very good, likes to hold groups, PPT, and concepts play better than the Americans. Under the governance of Indian executives, even the financial results are good in the short term, but after a long time, it will be found that the Indians have cut all the long-term strategic projects, leaving only the short-term and quick projects that will bear fruit in the short term. High-tech companies, bringing in Indian executives, is tantamount to digging their own graves.

And the Chinese in the technology industry, although it has been suppressed. However, basically, many Chinese CEOs who are appointed in danger are masters of technical skills and engineering, with a steady stream of innovation, and they quickly overtake their opponents in technology to maintain their advantages. For example, almost all of the graphics card companies in Silicon Valley were founded by Chinese.

AMD was almost on the verge of bankruptcy and hired Chinese CEO Lisa Su, and as a result, in four years, not only reversed AMD's long-term loss, but also shipped more CPUs for personal computers than Intel. This kind of thing, which was thought to be impossible, was really done by Su Lifeng, the CEO who was born in technology. In the past four years, AMD's stock price has also soared, becoming the highest performing listed company in Silicon Valley in the same time period.

This is not only the difference between using an Indian as an executive or a Chinese executive, but more importantly, the difference between attaching importance to management and concept and attaching importance to hard-core technology!

Hard-core technology will not be effective in the short term, but once the product is really successful, then the competitiveness will be so strong that the market is dumbfounded.

Only if the technical level is not good, it will be said that the technology is useless, and the management and marketing can be more effective. However, if you really have hard-core technology, you can invest one dollar in marketing, and the effect will be more obvious than the effect of 100 yuan marketing of junk products. Because, the product is strong to a certain extent, fans will really go everywhere for free without money.

"In addition, large Japanese enterprises, such as Sony, Panasonic, Sharp, etc., have invested less and less in research and development in recent years, and most of the products are improvements, rather than disruptive and amazing products. Moreover, with the deleveraging of the Japanese economy, the R&D budgets of Japanese companies continue to decrease, and it is conceivable that it will be difficult for these companies to achieve good performance in the long run in the future.

I don't like these self-depraved companies...... Therefore, in the future, we must not do this for our new start-up companies. R&D and innovation talents, must get more than the management team and professional managers of the remuneration, our enterprise has the highest average income, must be engaged in basic and innovative talents, rather than management talents and marketing talents!

Of course, I am not saying that management, marketing, and service are not important, but in the long run, these are only short-term competitive advantages, and the real long-term competitive advantage is that we have unparalleled innovation power, and can continue to invent products that are not available in the market, re-change the needs of future consumers, and reconstruct the future world with products.

On the one hand, we will give equity incentives to outstanding technical personnel, and even if we can't get equity incentives, what about the product development of the new entrepreneurial department, according to the market performance of the product, to the technical personnel dividends, some product technical personnel get benefits, even more than the company's shareholders. It is precisely for this reason that technical talents, even if they join relatively late, really have goods in their stomachs, and can develop more valuable patents or products, then, basically, relying on patent dividends and product dividends, it is enough to make many employees millions, tens of millions or even billionaires.

To tell a joke, last year, Taiwan's TSMC went to our subsidiary Xinchuang Core to poach Taiwanese technicians, and the other party coaxed to offer an annual salary of $15,000 'sky-high', thinking that this salary would make our technical backbone jump ship. As a result, our employees impatiently said to TSMC people, I'm sorry, my basic salary is not high, but it is only for daily consumption. The real return comes from working in Xinchuang Xin for three years, adding 7 international patents and 19 Chinese patents to the company, although the patent ownership belongs to the company, however, the patent inventor can get 10% of the patent rights, so only these patented inventions, let him pay dividends of no less than 3 million yuan per year. These patents have been applied to the products of the new entrepreneurship department within three years, and the cumulative licensing fee has exceeded 30 million yuan, and employees with invention patents can directly get 3 million shares.

As a result, the person who poached TSMC was stimulated, and the other party quickly turned around to apply for a new chip. Now, the person who came to poach has joined Xinchuangxin, plus the reward for technological innovation, with an annual income of about 700,000 yuan.

After this incident, several major semiconductor companies in Taiwan, such as TSMC, have banned their technical personnel from communicating with us, let alone poaching. Because, poaching is self-inflicted, and it will make the other party's technicians feel poor, so they will jump to our side.

Technicians who originally worked in Taiwan, the United States, Japan, Europe and other places may not have a patented invention in a year. After people come to us, there may be three or five patented inventions a year, and the patented inventions are all useful patents, because the commission we give to the patent inventor is that the patented invention is applied to the product, and the value generated will be market-oriented. An invalid invention that has no value does not make the inventor rich.

At present, the company holds nearly 200,000 inventions, all of which are shared with patent inventors, and nearly $3 billion will be distributed to R&D talents through this sharing mechanism alone. Over the years, more than $10 billion should have been awarded to employees who contributed to patented inventions. This continuous incentive mechanism makes people who are really capable willing to contribute their abilities and talents!

We have about 20,000 core technical personnel, and each person has contributed an average of 10 patents. It is very common for core technical talents to have an annual income of more than 1 million RMB. The quality of the patent is slightly higher, and a patent may bring the inventor millions of dollars a year.

It can be said that the average income of technological innovation talents should be the highest group of people in our new entrepreneurship department.

But I think it's well worth the money, and in the future, we will continue to make technical talents get the world's best rate of return......

Because, good steel should be used on the blade, as a high-tech enterprise, we do not pay attention to average, do not talk about fairness!

Because, there is no way to be fair, and too much consideration of mediocrity is the greatest injustice to geniuses!

The value of genius is not the same as that of ordinary people, and a genius may create a value that ordinary people can't catch up with in a lifetime!

Give more rewards to geniuses, and geniuses will contribute more wisdom, and those wisdom and innovations may feed thousands of ordinary people!"