Executives at Microsoft and other companies argue that their Chinese laboratories are not taking jobs away from the US or elsewhere. "There's an internationalization of research going on," Rashid said. "That's a good thing. The more smart people, the more innovation, and the more benefits for companies like Microsoft."
Advanced research
The starting point for this research boom is China's growing importance and sophistication as a market for technology, especially telecommunications and the Internet, industry executives said.
Recently, Oracle opened a laboratory in Beijing to tailor its Linux operating software to suit its Asian customers, and companies like Motorola, Siemens, IBM and Intel are going even further, running full-scale labs that work on their companies' most advanced products.
Although experts say that China's growth as an international research base will continue, many also said that growth could be slowed or ultimately endangered by the growing pains and legal uncertainties.
The most immediate threat is China's laxity in safeguarding intellectual property rights, which makes it too easy for innovations and industrial secrets to leak out, only to reappear in a Chinese competitor's product catalogue. Multinationals' growing resentment of theft of patents and trade secrets is leading some to threaten to quit China for India, Von Zedtwitz said.
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