Chapter 160: Enterprises that don't pay attention to R&D should let them die

Everyone cheered up, there was a lot of discussion in the technology community about why Neon wanted to sell Toshiba storage, and it would be good to hear Luo Jia's thoughts today.

Luo Jia said lightly, "The reason is actually very simple, because the neon authorities have no money." ”

"This is not sensational, just look at the annual budget of the neon administration, you can clearly see the problem, taking fiscal year 2018 as an example, the total expenditure of neon is 97.7 trillion yen."

"And what is Neon's total income?"

"With only 59.1 trillion yen, 30 percent of the annual expenses of the neon administration since 1999 have come from debt, which means that if you compare neon to a company, the company has been operating in debt."

"Of course, Neon owes so much money, will they go out of business?"

"Not really, at least not in the short term, because the neon people still have more than 900 billion yen in savings, plus stocks and bonds, the country's capital is still very strong."

"As we all know, there are many problems in Europe, refugees, trade unions, excessive social welfare, but Europe is still alive and well today, for no other reason, but with a strong foundation."

"Let's go back to Toshiba Storage, $18 billion, Neon can't afford it, why sell Toshiba Storage?"

"Because in this highly capital-intensive R&D field, it is not enough to help Toshiba tide over the current difficulties, in the field of memory chips, Toshiba's technology is already behind South Korea's Samsung and Hynix, and also behind North American Micron."

"If Toshiba wants to survive, it must invest tens of billions of dollars in continuous research and development, which is the biggest headache for the neon authorities."

"And you should also know that Sony's camera has been knocked out by us, Shin-Etsu's photoresist has also been knocked out by us, and now, we have started to hit the batteries of Panasonic and Sony, and we will also hit Toyota, Honda and Nissan cars in the future!"

"According to the current rhythm, the neon housekeeping industry has been knocked out one by one, can the authorities come to the rescue? They saved Toshiba Storage, what about Shin-Etsu and JDI? ”

"Just a few months ago, JDI, the last company to produce display panels, sold 33% of its shares to a consortium in China, and this is just the beginning."

Speaking of this, Luo Jia let out a sigh of relief, glanced at the audience, and said very seriously: "The reason why I am talking to you about this is to tell you that the matter of scientific and technological research and development has become a game that not everyone can play. ”

"Recently, we at Xingchen Technology have made some achievements, which we all see."

"What you can't see is that our R&D spending will surpass Huawei this year and become one of the companies that burn the most money on R&D in China and even in the world."

"I won't talk about the specific figures, as a private enterprise that has not been listed, how much money is spent on research and development, is our trade secret, anyway, everyone just needs to understand that the supercapacitors signed today, as well as all the technology products we have launched in the past, are all piled up with astronomical money."

"As a company at the forefront of global competition, we feel very deeply about this large-scale shift in R&D trends, the era of small enterprises has completely passed, and the future can only be the world of giants."

"There is a good example of this in the field of rail transit that we are familiar with."

"Our high-speed rail has grown from scratch, from existing to strong, what has happened in the middle? Why can CRRC become the strongest player in the world? ”

"The reason is clear if you look at the financial statements, CRRC's revenue this year will reach 23 billion euros, ranking second is the German Siemens track department, 7.8 billion euros, the third is the French Alstom Track, 7.6 billion euros, the fourth is Bombardier Canada, 7 billion euros, the fifth is Neon Hitachi Track, 3.8 billion euros, and the sixth is Neon Kawasaki, only one billion euros."

"This is the power of scale, and the revenue scale of CRRC has reached the sum of the second, third and fourth places!"

"And with the rapid rise of CRRC, from Siemens to Alstom, their performance is declining every year, and their market share is constantly being eaten away by CRRC."

"There are some trolls on the Internet, always saying that China's high-speed rail uses overseas technology."

"This kind of ignorance is really terrible, at the beginning when there was not, of course we had to introduce technology from abroad, but now the situation is that after CRRC becomes bigger, the R&D investment exceeds the sum of other players in the world, and it has embarked on the road of independent research and development."

"As CRRC grows larger and its R&D investment becomes higher and higher, other competitors will feel more and more struggling and can't catch up."

"So you can see it, money is really a good thing, there is money to have research and development, there is research and development to make progress, and there is progress to have a market."

"The neon Kawasaki tracks I mentioned earlier, all of the 548 locomotives they delivered to the Washington Metro in May 2018 were exposed to serious quality problems."

"Why?"

"Isn't it because Kawasaki has no money and wants to cut corners to make a little more, they even want to withdraw from the market competition and sell the factory to their old rival Hitachi Orbit, and Hitachi Orbit can swallow Kawasaki?"

"I don't think so, because Hitachi can't beat the CRRC at all, and it's about to lose its pants."

"It can be seen that the so-called neon manufacturing quality is a complete joke, just because they once dominated the market and have the ability to invest heavily in research and development.

"Therefore, the only solution to this problem is to continue to invest a lot of money, and there is no other way to go."

"There are only two countries in the world that invest more than four percent of GDP in R&D, one is Israel and the other is South Korea."

"And their international competitiveness is also obvious to all, especially Israel, which has a population of only 8.7 million, and just a few steps from Israel to the surrounding area, directly into the war zone, how bad the environment is."

"But it is in such a harsh environment that Israel has risen a large number of high-tech enterprises with the highest proportion of R&D investment in the world, and has always occupied a place in the global competition."

Everyone nodded one after another, if Israel is far away and doesn't know much about it, South Korea around it is a hard example.

Many people may not know that there is a reason for the rise of South Korea, and their R&D investment ratio is the second highest in the world, and 4.2% of their annual GDP is used for R&D.

In third place is Sweden, with R&D investment as a percentage of GDP at 3.2 percent, a full percentage point worse than South Korea.

In the world, Israel and South Korea have the craziest R&D investment, so their final achievements are also the craziest.

In the past two years, Xingchen Technology has been fighting with South Korea, but Luo Jia has always warned the straight men of steel not to underestimate South Korea.

With their crazy investment in scientific research, although it shows that the mobile phone and battery have been knocked out, maybe one day, they will burst out with new growth points.

After all, an enemy who values R&D is always the most difficult to deal with.

At this point in the speech, Luo Jia released the PPT he made.

In this PPT, not only clearly lists the proportion of R&D investment in GDP of each country, but also analyzes the overall competitiveness of each country.

There are many kinds of rankings, and Luo Jia's list is arranged according to the importance of research and development in various countries.

Israel ranks first in the list, and although they are small, they are the most R&D-focused country in the world.

South Korea is second, Sweden is third, Neon is fourth, Germany is fifth, Denmark is sixth, Finland is seventh, North America is eighth, Belgium is ninth, France is tenth, China is eleventh, followed by Iceland, Norway and the Netherlands.

Basically, the emphasis on R&D is positively correlated with the global competitiveness of each country.

The more emphasis a country is on R&D, the more technologically advanced it is, and the stronger its global competitiveness will be.

Among the five European pig countries, the highest ranking is Italy, but it has also reached the level of twentieth in the world, and the proportion of R&D in GDP is just 1.2 percent, as for Greece, Spain, and Portugal, it is even worse.

Luo Jia did not use them as an example, but gave an example of Russia.

The successor of the former Soviet Union, a former superpower, has now slipped to the point where R&D investment is only 0.9 percent of GDP, which is quite embarrassing to say.

But this world is so cruel, no matter how powerful Russia was in the past, today they do not pay attention to research and development, and lie on the merits of history to drink vodka, which is doomed to the fate of being eliminated in the new century.

I have to say that the table made by Luo Jia is too clear and shocking.

Whether or not to attach importance to research and development directly determines the level of international competitiveness.

Clearing her throat, Luo Jia began to make a final summary.

"I want to tell you so much today mainly to explain three things."

"First, R&D is the ultimate competitiveness, only by attaching importance to R&D can we have a place in this cruel competitive world, and countries that do not pay attention to R&D, even if they are as strong as Russia, will be eliminated."

"Second, the era of low-cost R&D is gone, and today's high-tech R&D needs to be led by giant enterprises and invest astronomical financial and human resources."

"Thirdly, and most importantly, there are not too many giant enterprises in my country, but too few."

"Assuming that we can have a hundred giant companies like Huawei that dare to invest heavily in R&D, it is possible to complete the counterattack against the great powers."

"Therefore, I sincerely hope that you can support companies like Huawei and continue to grow bigger and stronger, after all, the bigger they do, the more hope our nation will have."

"As for some companies in my country, although the scale of revenue is also very large, they do not pay attention to research and development, and do some things that eat inside and out, and do bullshit."

"Companies like this, I suggest, just let them die."

"Thank you, and I'm done with my speech for today."

After that, Luo Jia walked off the stage, and there was warm applause from the audience.

Today, Luo Jia stands in the perspective of the enterprise, and can be regarded as explaining the matter of research and development clearly, and the research and development work in the new century has become a game between giants, a game of super capital, and there is no second way except to use massive capital to promote.

At this moment, Professor Ouyang was sitting in the box with an old man.

The old man was silent for a long time, frowning and thinking, and suddenly laughed again.

"This kid is a chicken thief, he said that research and development is so difficult, and he hopes that we will fully support Huawei and make Huawei a giant." The old man looked at Luo Jia's figure in the distance, "I'm afraid he wants to be a giant, but he is very cunning and doesn't mention himself, and just uses Huawei as an example." ”

Professor Ouyang was stunned and blinked, "It seems that this is really the case..."

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