Saturday, 14 October 2017

China's top E-commerce firm, Alibaba, plans to invest $15 billion on Global R&D Program

By Ridhima Malhotra

Research and Development plays a critical role in the innovation process. Its essentially an investment in technology and future capabilities which is transformed into new products, processes, and services. Big tech Giants like Google, Amazon, Apple, Alphabet, Intel and Microsoft spent billions on research and development.Alibaba is likely to continue with arrangement and is set to dramatically increase its R&D spending from $6.4 billion every year to $15 billion in the coming three years.

The Alibaba 'Damo' academy would launch eight research labs in China, Israel, the United States, Russia and Singapore. The labs will conduct research in areas such as data intelligence, Internet of Things, financial technology, quantum computing and human-machine interaction.

Alibaba in the recent years has experienced a fast expansion, carrying it into direct competition with US e-retailer Amazon. The Chief Technology Officer Jeff Zhang said that the plan to invest 15 billion in R&D would help the Chinese giant to develop next generation technology and will increase the growth of the company and its partners.

Amazon drives the tech world in R&D spending, with its spending amounting to around $16.1 billion. Close on the heels is Alphabet($13.9 billion), Intel ($12.7 billion), Microsoft ($12.3 billion) and Apple ($10 billion). All things considered, China's pioneer in e-commerce business is stepping forward to contend on a worldwide level with these western organizations.

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