The year 2021 marked the 15th Anniversary of the China Platform in Ghent University. On 21 March 2022, the China Platform hosted a festive 1-day event in the Convention Center Het Pand. During this event, the China Platform also presented its third book about the Ghent University–China cooperation of the past 15 years, since the establishment of the China Platform. As part of the celebration of the 15th Anniversary of the China Platform, the Flanders-China Chamber of Commerce and Ghent University organized a panel discussion on “Innovation and R&D: future prospects with China”.
A link to the video is available on demand by sending an email to info@flanders-china.be
The following speakers participated in the panel discussion: Mr Kurt Vandeputte, Chairman of the Flanders-China Chamber of Commerce and Senior Vice-President Government Affairs, Umicore; Mr Luc Semeese, Vice-President Manufacturing Engineering, Volvo Cars; Mrs Veerle Van Wassenhove, Vice-President Research & Innovation, Bekaert; Mr Wim Van Camp, General Manager, Ghent University Tech Transfer Office; Mr Birk Vanderweeën, General Manager Europe, Legend Biotech. Ms Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce, moderated the panel discussion.
Ms Gwenn Sonck welcomed the panel members and audience to the panel discussion and congratulated Ghent University on its 15 years of cooperation with China. Innovation was also a buzzword at the annual sessions of China's two main political bodies this year as China will further implement the innovation-driven development strategy and raise its capacity for scientific and technological innovation. China ranks 12th in the global innovation index of 2021, and in 2020 China overtook the U.S. as the top filer of international patents. China also surpassed the EU in expenditure on R&D, becoming the second largest spender after the U.S. European companies see opportunities in an increasingly innovative China.
Ms Sonck first asked the panelists to describe their activities in China. Mr Kurt Vandeputte said that China represents one-third of Umicore's activities, involving battery materials and catalysts. It's crucial to do the innovation where the applications are and that's in China. Mrs Veerle Van Wassenhove said Bekaert has been long active in China where about half of its turnover is generated. There is a twin of the Belgian R&D center in China. Mr Luc Semeese said Geely Automotive bought Volvo in 2010 and pushed Volvo to grow in China. R&D was part of that growth, including the area of autonomous driving. Mr Birk Vanderweeën said Legend Biotech wanted to be a global biotech player and has a significant footprint in China with its innovative cell therapy, for which it is important to be close to the patient. Mr Wim Van Camp said there is still much untapped potential for collaboration with universities in China as a technology partner. The personal networks through alumni is very important. One spin-off company of the university was sold to Huawei.
What are the benefits of R&D in China and the different steps to execute this? Mr Vandeputte: The benefit is the proximity to the customer. Materials have to work in applications. You can't allow not to be close to your customer and because of that delay the introduction of materials and devices. Technology is moving so fast that it's important to cut any dead time in a development track. That's one of the key advantages of doing innovation in China: being close to the customer and very fast in action. Mrs Van Wassenhove: Proximity to the customer is a necessity to do development. It's also important not to have a cultural gap between your R&D team and applications. The pace of execution is much higher than in Europe. We also invested in personnel exchanges to build a common ground. Mr Semeese: When we started producing in Chengdu in 2014, we were looking at localizing existing cars. R&D was mainly focussed on connectivity as you needed to make a “Chinese Google” work. In phase two, China is developing cars for the world. China is still a sedan market with Volvo producing them in Daqing. Now we are in phase three looking to localize R&D for platform parts, such as batteries and electronic components. Mr Vandeputte: One of my mistakes 15 years ago was to want to produce products for China. Chinese customers want world-class products, not the feeling that they have second-rate products. Mrs Van Wassenhove: Bekaert has always produced for export from China. We still have to streamline the common part of R&D and innovation. Mr Semeese: Volvo quite quickly started R&D in China for the world. As 100% Chinese-owned, the model was much more to grow in China and it was easier to develop compared to European joint-venture companies. Mr. Vanderweeën: Legend's cell therapy was invented in China, so the research was done in China. The main challenge will be to get enough talent to grow further. Mr Van Camp: The main challenges for technology transfer is often patent protection and enforcement and there has been much progress in China, making it easier to do technology transfer.
Could talent become a challenge in China? Mr Vandeputte: Umicore is well-known in Belgium having no problem attracting talent, but the situation is different in China being less well known and in an industry with big established names. It is more challenging to attract people, but as a non-Chinese company we can offer certain developments abroad. Mrs Van Wassenhove: With Covid it is not easy to make your Chinese satellite still feel part of a global company. Mr Semeese: In the beginning we were concerned losing talent to other companies, but it turned out most of the people stayed. One of the reasons is that we are providing mainly Swedish family values, which are also attractive in China. And we could also offer international careers.
Will your company increase its investments in China? Mrs Van Wassenhove: Bekaert will increase its investment and R&D in China. Mr Vandeputte: Uncertainty in international trade is increasing a lot. We are no longer investing in plants that will produce for 60% for an international market. But China itself is a huge growing market, so our activity is also growing. We spend close to 10% of our revenue in research. China's Covid strategy is hindering us severely. Innovation and business is not done by computer, but done by people and teams. You can only be innovative if you can challenge each other. I hope the Covid strategy will change fast or it will be to the detriment of activities in China. Mr Semeese: Volvo will continue investing in R&D in China, employing another 150 employees. There is still a big potential for Volvo in China. Due to Covid we had to give more responsibility to our local teams, which was quite successful. But not being able to go to China is not sustainable over time. Mr Vandeputte: As Chairman of FCCC, I would like to add that China could be a fantastic market for hundreds of thousands of entrepreneurs in the world, but since two years there are no opportunities to interact. We should accept a new way of interacting with each other. We cannot continue to live isolated. People want to interact, they want progress and prosperity.
In your industry, how innovative are Chinese companies and how do you rate the enforcement of IPR? Mrs Van Wassenhove: The pace of co-development with customers is fantastic so it is important to keep that connection. We are still concerned about enforcement of IP rights. We look forward to soon be able to reconnect the teams. Mr Vandeputte: In China, big steps have been taken to align with the international approach to IP. IP is an asset. You invest in innovation to create an asset, which is something that is protected, like a factory building. You want the rules to be the same everywhere and be enforced. In China the biggest steps taken so far are what the rules are and recognizing these rules. Enforcement and follow-up actions are still problematic with different outcomes in different courts. We want the law to be applied to the same extent everywhere. The best way to level the playing field is to ensure that innovation in China is at par with international innovation. Chinese companies will also want their IP to be respected outside China. Mr Semeese: Ten years ago you had Chinese cars very much looking like foreign ones. That is gone now, because China now has the money to go for the original rather than the fake copy. Volvo has never been a very patent-oriented company. Mr Van Camp: Still under development is to use the business network of Chinese universities to get our technologies into China. Due to Covid we have to start it up again. We will only collaborate with China in fields in which we are still better. Mr Vanderweeën: Chinese companies have a clear strategic perspective, combined with speed and a can-do mentality. Our product has gone from innovation to treating the first patients in eight years, which is amazing. Mr Semeese: The speed of building something is fantastic. In China we built three plants from scratch in four years. Such speed is impossible in Europe. We should not be afraid of Chinese technology or the market but we should be afraid of the speed of innovation and acting. Mr Vandeputte: Having been Chairman of our joint venture in China for close to 10 years, each time coming back I was energized. The ideal would be continue to act fast but add a durability component. Sometimes the high quality is lacking. Mrs Van Wassenhove: Our management team needs the boost from China, because they all come back energized. Mr Van Camp: We would like more Chinese companies to come to Belgium, several are already located in our science park.
A Q&A session concluded the panel discussion.
More information on other events during the celebration is available on the website of the China Platform here
