Shanghai remains a destination for global companies to set up and upgrading research and development (R&D) centers in 2024 amid global market uncertainties, showcasing its attractiveness among global investors. In the first half of 2024, 15 companies received recognition certificates from the Shanghai government for their R&D centers, increasing the total number of foreign R&D centers in the city to 575. In line with its goal to transform Shanghai into an international innovation hub, the city’s government has been enacting measures to promote the establishment and upgrading of foreign R&D centers in recent years. In March, Shanghai released a plan to encourage the establishment of more foreign R&D centers and upgrade the innovation capacity of current ones. According to the plan, the Shanghai government will optimize the customs clearance procedures for R&D materials; support legitimate cross-border flow of R&D data; step up financial support; better protect intellectual property rights (IPRs); provide supportive talent policies and introduce more favorable fiscal and tax policies for foreign R&D centers.
Foreign R&D centers are being encouraged to set up public non-profits for fundamental scientific research funds in Shanghai. While biosafety risk assessments are still needed, the period of quarantine on imported genetically modified animals and plants and biological materials introduced by foreign R&D centers for national or municipal research projects will be shortened, with entry and follow-up supervision procedures optimized. Work permits or residence permits granted to high-end foreign talent working at foreign R&D centers will be valid for as long as five years, according to the new plan. For global companies, Shanghai’s ongoing efforts to boost innovation created huge growth opportunities, which will support their long-term growth in China.
Carrier Global Corporation, a global leader in intelligent climate and energy solutions, received the accreditation for its global R&D center in Shanghai in 2023. According to Kuang Yuhui, Director of the Carrier Shanghai R&D Center, the facility has more than 400 employees and serves as an incubator for a large number of talented workers. “Carrier’s Shanghai R&D center stands as a key among Carrier’s global R&D facilities, supporting the company’s worldwide business operations,” said Kuang. “Shanghai, for Carrier, signifies not only a critical market but also a well-spring of advanced technologies and innovative solutions. By establishing our R&D center here, we can leverage the city’s dynamic innovation ecosystem and collaborate with local partners, universities and research institutions to accelerate the development of new products and services.” In November 2023, Carrier launched its fourth Carrier i3 (imagine-innovate-ignite) Lab in its Shanghai R&D center, joining labs in Poland, the United States and India. Carrier has set out on a path to establish itself as a worldwide front-runner in intelligent climate and energy solutions.
In 2020, Herbalife, a U.S. nutrition developer, established its Product Innovation Center in Shanghai with the goal of expanding local operations and supporting global innovation. The center was awarded the Certificate of Foreign-Funded R&D Center in Shanghai from the municipal government in 2024. Stella Tsai, Managing Director of Herbalife China, said that the center – which primarily focuses on developing new product portfolios, flavors and packaging - has introduced more than 40 new products to the markets in the past four years. These products include a gummy with DHA (an omega-3 acid) and shake drinks tailored for young consumers. Since 2022, the center has played a crucial role in supporting Herbalife’s product packaging development in the Asia-Pacific region, Brazil and European markets, contributing to the company’s global innovation efforts. “In 2023 and 2024, the center’s product packaging designs have received four international design awards and eight domestic industry awards and secured 11 patents,” said Tsai. She praised Shanghai for its talent pool, transport networks, comprehensive industrial support systems, premium government services and policy support, all of which played a crucial role in the company’s decision to set up its R&D facility in the city.
Shanghai’s initiatives to improve government efficiency by streamlining business approval procedures and reducing approval times, fostering openness and transparency and maintaining a stable business environment have all contributed to Herbalife’s expansion in the region. “Shanghai offers an exceptional investment environment and stands as a primary investment destination for Herbalife in China,” said Tsai. “Since Shanghai has served as the location for Herbalife’s regional headquarters for many years, we have established strong roots here and have reaped the benefits of the city’s favorable business environ- ment. Herbalife aims to capitalize on its robust presence in Shanghai and is committed to achieving even greater development in the future,” the China Daily reports.
