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Guidelines for Multinationals Expanding Chemical R&D in China

Posted on March 13th, 2017 by in Chemical R&D


As China’s chemical market accounts for an ever-growing share of the total global market (it’s expected to be 40% by the year 2020), the market share of foreign-owned chemical companies in China has been declining. The fact is, local companies are getting very good at capturing the growing mid-market for chemicals, which means foreign firms are under pressure to put out better products to stay competitive.

This combination of the increasing importance of China’s market and increasing competition from local players is spurring multinationals to expand their exploratory chemical R&D activities and to focus more on creating China-specific products.

But the prospect of expanding brings up questions like: How should we proceed? What resources will be needed? Which areas of the R&D portfolio are suited to a location in China?

This white paper proposes a three-step process for expansion of chemical R&D in China:

  1. Establish Knowledge Base – Considerations include looking at the R&D landscape, competitors, regulations, subsidies, and even China’s political goals.
  2. Select R&D Area – Questions to ask include: Which markets in China have high demand or are hungry for innovation? What areas of China’s chemical industry have the tightest regulations?
  3. Establish R&D Facilities – Deciding on a physical location should include considering the qualifications and skills of local researchers.

Read the complete white paper to learn more about the important factors that multinational chemical companies need to consider when broadening their R&D activities in China.


All opinions shared in this post are the author’s own.

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