Research Of Allocation Adjustment Of R&D And Engineering Resource In Husco (China)

As the core part of intellectual property of enterprises in manufacturingindustrial, R&D and engineering resource has significant influence onsupporting company’s market expansion, raising efficiency in serving customerand reduction of the internal cost.Being the key hydraulic components supplier in construction equipmentsindustrial, not only does R&D and engineering resource influence the rate thatHusco (China) products are applied in construction equipments made by Chinaconstruction equipments companies, but also will the R&D and engineeringeffort in Husco lead to the achievement of technology improvement byapplying opportunities the market provides so that continuous competitiveadvantage of company can be achieved. Hence, the decision on R&D andengineering resource will influence the future development of the organizationsignificantly. However, in view of the concern of situation of intellectualproperty protection in China, the decision maker of Husco International whichis the parent company of Husco (China) has not chosen to establish the R&Dand engineering function in China.The first half of the article covers the analysis of internal and externalenvironment and challenge Husco (China) faces as well as the managementstatus of R&D and engineering resource in Husco (China), the necessity tooptimize the decision-making is analyzed through it.In the second half of the article, the enterprise strategy of Husco (China),the purpose of direct transnational investment, the structure of internaltransaction cost in Husco (China), opportunities that the optimization willprovide, risk analysis and the practice of other transnational companies onR&D and engineering decision-making are analyzed, then the possible solutionto adjust the allocation of R&D and engineering is raised which is Husco(China) needs to establish and cultivate the engineering team that will beresponsible for technology industrialization in China and technologyapplication localizing. At the same time, concrete action to reduce the risk ofintellectual property Husco faces in China is raised and the positive effect thatthe allocation adjustment of R&D and engineering will bring is summarized init.