Technological Hegemony

Chapter 160 Enterprises that don't pay attention to research and development, let them die

Everyone cheered up. There have been many discussions in the technology community about why Neon should sell Toshiba storage. It is 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 authority, and you can clearly find the problem. Taking the 2018 fiscal year as an example, the total expenditure of neon is 97.7 trillion yen."

"And what is Neon's total revenue?"

"Only 59.1 trillion yen. Since 1999, 30% of the annual expenses of the neon authority have come from debt. That is to say, if the neon is compared to a company, this This business has been operating in debt."

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

"No, at least not in a short period of time, because Nihong people still have more than 9 trillion yen in deposits, plus stocks and bonds, the country's capital is still very strong."

"As we all know, there are many problems in Europe, such as refugees, trade unions, and excessive social welfare, but Europe is still alive and well today. There is no other reason, it's just a solid foundation."

"Let's go back to the matter of Toshiba storage, 18 billion US dollars, Neon is not unaffordable, why should we sell Toshiba storage?"

"Because in this highly capital-intensive R\u0026D field, it is far from enough to help Toshiba overcome the current difficulties. In the field of memory chips, Toshiba's technology has already lagged behind South Korea's Samsung and Hynix, and also behind North America's Micron. .”

"Toshiba must invest 18 billion U.S. dollars in continuous research and development if it wants to survive. This is the biggest headache for the Neon authorities."

"And everyone should also know that Sony's camera has been destroyed by us, and Shin-Etsu's photoresist has also been destroyed by us. Now, we have started to fight for Panasonic and Sony's batteries. In the future, we will also fight for Toyota and Honda. And Nissan cars!"

"According to the current rhythm, the neon housekeeping industry has been destroyed one by one. Can the authorities rescue them? They saved Toshiba Storage, what about Shin-Etsu and JDI?"

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

Speaking of this, Luo Jia let out a long breath,

Scanning the audience, he said very seriously: "The reason why I am telling you this is to tell you that technology research and development has become a game that not everyone can afford."

"Recently, our Star Technology has made some achievements, which everyone has seen."

"And what everyone can't see is that our R\u0026D expenditure will surpass Huawei this year and become one of the companies that spend the most money on R\u0026D in China and even in the world."

"I won't talk about the specific figures. As a private company that is not listed, how much money we spend on research and development is our commercial secret. Anyway, everyone just needs to understand that the supercapacitors we signed today and all the technology products we have launched in the past, It's all piled up with astronomical sums of money."

"As a company at the forefront of global competition, we have a deep feeling for this large-scale shift in R\u0026D trends. The era of small companies has completely passed, and the world will only be dominated by giants in the future."

"In the field of rail transit that we are familiar with, there is a good example."

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

"The reason will be clear when you look at the financial statements. CRRC's revenue this year will reach 23 billion euros. The second place is Germany's Siemens Rail Division with 7.8 billion euros. The third is France. Alstom track, 7.6 billion euros, Canada’s Bombardier is fourth, 7 billion euros, the fifth is Neon Hitachi track, 3.8 billion euros, and the sixth is Neon Kawasaki, only 1 billion euros.”

"This is the power of scale. CRRC's revenue scale 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 eroded by CRRC."

"Some trolls on the Internet always say that my country's high-speed rail uses foreign technology."

"This kind of ignorance is really terrible. When we didn't have it at the beginning, of course we had to import technology from abroad, but the current situation is that after CRRC grows bigger, its research and development investment exceeds the sum of other players in the world, and it has embarked on the road of independent research and development. .”

"As the scale of CRRC becomes larger and the investment in research and development becomes higher and higher, other competitors will feel more and more difficult, and they will not be able to catch up."

"So everyone can see that money is really a good thing. Only when there is money can there be research and development, and if there is research and development, there will be progress, and if there is progress, there will be a market."

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

"why?"

"Isn't it because Kawasaki has no money, cut corners and materials to make more money, and they even want to quit the market competition and sell the factory to their old rival Hitachi Rail, and Hitachi Rail can swallow Kawasaki?"

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

"It can be seen that the so-called good quality of neon manufacturing is a complete joke, just because they once ruled the market and have the ability to invest heavily in research and development. No worse than them."

"So, the only solution to the problem of research and development is to continue to invest heavily. There is no other way to go."

"In this world, there are only two countries whose research and development investment accounts for more than 4 percent of GDP. One is Israel and the other is South Korea."

"And their international competitiveness is obvious to all, especially Israel, where the population is only 8.7 million, and if you walk a few steps from Israel to the surrounding area, you will directly enter the war zone. How bad the environment is. .”

"However, in such a harsh environment, Israel, with the highest ratio of R\u0026D investment in the world, has emerged a large number of high-tech companies, and has always occupied a place in global competition."

Everyone nodded one after another. If it is said that Israel is far away and not well understood, then South Korea is a blunt example.

Many people probably don't know that there are reasons for South Korea's rise. Their research and development investment ratio is the second highest in the world, and 4.2% of their annual GDP is used for research and development.

Sweden ranks third, with R\u0026D investment accounting for 3.2% of GDP, a full percentage point behind South Korea.

In the whole world, Israel and South Korea have the craziest investment in R\u0026D, so the results they finally achieved are also the craziest. As two small countries, it is really not easy to achieve today in the international competition full of strong players.

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

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

After all, the enemy who attaches great importance to research and development will always be the most difficult to deal with.

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

On this PPT, it not only clearly lists the ratio of R\u0026D investment to 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 each country attaches to research and development.

In the list, Israel ranks first. Although they are small, they are the countries that attach the most importance to research and development in the world.

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

Basically, the emphasis on R\u0026D is positively correlated with the global competitiveness of countries.

A country that pays more attention to research and development, the more advanced its technology, the stronger its global competitiveness.

Among the five European pig countries, Italy ranks the highest, but it has already reached the twentieth place in the world. The ratio of research and development to GDP is only 1.2%. As for Greece, Spain, and Portugal, it is even worse. Far.

Luo Jia did not take them as an example, but Russia.

The successor of the former Soviet Union, a former superpower, has now seen its R\u0026D investment drop to only 0.9% of GDP, which is embarrassing to say the least.

But this world is so cruel. No matter how powerful Russia was, today they do not pay attention to research and development, and drink vodka while lying on the credit book of history. They are doomed to be eliminated in the new century.

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

Whether to attach importance to research and development directly determines the level of international competitiveness.

After clearing his throat, Luo Jia began to make the final summary.

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

"First, research and development is the ultimate competitiveness. Only by paying attention to research and development can we have a place in this cruelly competitive world. Countries that do not pay attention to research and development, even if they are as powerful as Russia, will be eliminated."

"Second, the era of low-cost research and development is gone forever. Today's high-tech research and development needs to be undertaken by giant companies, investing astronomical financial and human resources."

"The third and most important point is that there are not too many giant companies in our country, but too few."

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

"So, I sincerely hope that everyone can support companies like Huawei and continue to grow bigger and stronger. After all, the bigger they do, the more hopeful our nation will be."

"As for some companies in our country, although the revenue scale is also very large, they don't pay attention to research and development, and they do nothing but bullshit."

"Businesses like this, I suggest, let them die."

"Thank you, my speech today is over."

After all, Luo Jia stepped off the stage, and there was warm applause from the audience.

Today, from the perspective of an enterprise, Luo Jia has explained the matter of research and development clearly and thoroughly. The research and development work in the new century has become a game between giants, a game of super capital. In addition to using massive capital to promote, There is no second way.

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

The old man was silent for a while, frowned and thought, then suddenly laughed again.

"This kid is a chicken thief. He made R\u0026D 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 become a giant himself. , but he cunningly did not mention himself, and only used Huawei as an example."

Professor Ouyang was startled, blinked his eyes, "It seems to be true..."

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