Huawei doesn't really want to spend $22 billion every year on innovation, but it has to

We all have to do things we don't want to, but Huawei is on another level: the Chinese giant spends over $22 billion annually, just to keep up with the competition.

Experts suggest that Huawei's substantial annual R&D expenditure of 164 billion yuan (that equals approximately $22.592 billion) is driven by necessity rather than choice. According to Liu Ke, Dean of the School of Innovation and Entrepreneurship at the Southern University of Science and Technology, the company's massive investment in research and development is a critical survival strategy (machine translation readout).

Research and Development is crucial. You can't simply brush it off. R&D is how a company explores new ideas, technologies, and methods to create or improve products and services. For companies like Huawei, R&D is essentially an experimental approach to discovering innovative solutions and maintaining competitive advantage in a rapidly evolving technological landscape.

Liu explained that China's traditional competitive approach based on cost-effectiveness has reached a critical turning point. With increasing costs across various sectors, innovation has become the primary pathway to success. The expert emphasized that the emerging era of productivity demands more than technological advancement – it requires a comprehensive societal transformation.

From Liu's perspective, the coming years will be characterized by a profound reform process expected to continue until 2029. This transformation will necessitate a collective focus on innovation and quality across all societal levels. The fundamental challenge lies in addressing technological and economic obstacles through creative problem-solving and strategic development.

Huawei's significant R&D expenditure exemplifies this approach, representing a strategic investment in future technological capabilities.

And, boy, have they delivered technological innovation: we can't forget the radical Huawei Mate XT, the world's first tri-folding phone. Sure, it's expensive at $3,000 (and available solely in China for now), but it's a stunning piece of technology.