High-tech enterprises putting down roots in Jinan to conduct R&D and design will become a new direction for future development. This requires the city to be more open in its policies and to continuously improve its living environment.

 

　　　"This is a day when dreams come true," said Anders Larsson, Executive Vice President of Volvo Construction Equipment. "I have witnessed two 'onlys.'"

 

　　　On the morning of March 19, on Gangxi Road in Jinan High-tech Zone, the Volvo Construction Equipment Jinan R&D Center, covering an area of 50,000 square meters, was inaugurated. This is the first national-level R&D center established in Jinan by a Fortune Global 500 company, and also Volvo Construction Equipment's only product and technology center in China.

 

　　　Volvo Construction Equipment is the world's third-largest construction equipment manufacturer and has established nine national-level R&D centers worldwide, with Jinan being the tenth. It is understood that there are currently 50 Fortune Global 500 companies operating in Jinan, and this is the first to set up a national-level R&D center. "It is very rare for a multinational company like this to place a national-level R&D center in Jinan," Li Jinqiang, Deputy Director of the Service Trade Division of the Jinan Municipal Bureau of Commerce, told reporters. Unlike in the past, when Fortune Global 500 companies came to open factories and build production bases, the Volvo Construction Equipment Jinan R&D Center can offer many lessons for those who follow. "High-tech enterprises coming to Jinan to conduct R&D and design will become a new direction."

 

　　　In March 2002, Volvo Construction Equipment entered the Chinese market and currently has production bases in Shanghai and Linyi. Mats Sköldberg, President of Volvo Construction Equipment Technology (China) Co., Ltd., said that China's construction machinery market is developing rapidly and accounts for half the share of emerging markets. "Choosing to build an R&D center in Jinan shows that we are full of confidence in local R&D. Only by eating here, living here, and breathing the air here can we produce products suited to this market." According to Anders Larsson, the Jinan R&D Center has already successfully launched its first Volvo L105 wheel loader tailored specifically for emerging markets.

 

　　　The Volvo Construction Equipment Jinan R&D Center, with a total investment of 256 million yuan, mainly develops complete machines, assemblies, and components for emerging markets. Of its nearly 160 employees, Chinese engineers make up the majority. "Jinan is the capital of Shandong, with convenient transportation and many engineering universities, and can provide a large number of talents for the R&D center. We have reason to believe that the Jinan R&D Center gives us the opportunity to succeed in emerging markets," Anders Larsson told reporters. Before the R&D center was established, they solicited opinions from Wang Zhizhong, Chairman of Lingong Construction Machinery, which is controlled by Volvo. Wang Zhizhong believed that Jinan sits at the intersection of the Volvo brand and the Lingong brand and would become a brand integration point, facilitating the sharing of technology and talent.

 

　　　From the initial idea to company registration and then to the completion of the R&D center, Jia Hongying, Director of the Business Development Department of Volvo Construction Equipment Technology (China) Co., Ltd., was not only a witness but also a participant. "When we first selected a site, Jinan was not the only choice. In the end, we chose Jinan because we valued its development environment. Even for a Fortune Global 500 company like Volvo, when coming to a new environment, the only ones we can turn to for help when problems arise are the local government. For our company registration, site selection, and various approvals, the Jinan Municipal Bureau of Commerce and the High-tech Zone provided a great deal of help."

 

　　　With location advantages, talent advantages, market space, and a gradually improving development environment, Li Jinqiang believes that compared with cities such as Beijing, Shanghai, and Guangzhou, Jinan has relatively lower labor costs, and convenient transportation has shortened distances between cities, which will attract more enterprises engaged in R&D services to invest and do business. "Once there is the first, there will be a second and a third."

 

　　　According to reports, before 2008, some Fortune Global 500 companies also wanted to locate R&D services in Jinan, but because there was no suitable international school and the schooling problem for foreign personnel's children could not be solved, the opportunity was ultimately lost. This problem still exists today. "The foreign personnel at the R&D center live in Shanghai, mainly for the convenience of their children's schooling."

 

　　　According to the plan, the Volvo Construction Equipment Jinan R&D Center can accommodate 450 employees. How to retain these outstanding engineers in the future is a worry for Jia Hongying. "We not only hope to be competitive in technology and products, but also hope to become an employer of choice and be attractive to talent. This requires consideration of issues such as employee settlement, housing, and children's schooling, and this also requires Jinan to be more open in its policies and to continuously improve the urban living environment."

 

　　　Jia Hongying believes that many foreign-funded enterprises, including Volvo, especially need the government to provide more process-based and standardized services. "The service attitude of government departments is very good, but if there could be a roadmap for every step an enterprise must take and every place where it needs to deal with the government, guiding enterprises on what to do at each step, it might be more efficient."