[Multinational Enterprises in China] “Only” and “No. 1”, how did China become Johnson & Johnson’s “global innovation engine”?
China News Service, Shanghai, February 21 (Reporter Zuo Yukun) “China is the only market outside the United States where Johnson & Johnson has established R&D centers or R&D departments in all major businesses.” The world’s top 500 companies that have made strategic deployments for their innovative status” “Johnson & Johnson China has become the first open innovation platform recognized by the Shanghai Municipal Government”… In this world-leading diversified innovative medical and health company, Johnson & Johnson’s executives have continuously emphasized the importance of The importance and confidence of the Chinese market.
On February 20, under the guidance of the Internet Communication Bureau of the Central Cyberspace Administration of China, the online theme promotion media group of “New Era, New Opportunities – Multinational Enterprises in China” sponsored by the Shanghai Municipal Cyberspace Administration and China News Network entered the Johnson & Johnson China headquarters, and Song Weiqun, Global Senior Vice President and China Chairman of Johnson & Johnson, had an exchange.
Song Weiqun, Global Senior Vice President and China Chairman of Johnson & Johnson.
Photo by China News Agency reporter Zhou Sunyu
First-class business environment strengthens confidence
”Johnson & Johnson is full of confidence in China’s future economic development and the bright prospect of deepening the Chinese market.” Song Weiqun first said that China’s economy has a solid foundation, great potential, and sufficient resilience. The huge potential of the medical and health market will also continue to be released. Johnson & Johnson is willing to Grow and develop together with the Chinese market.
In his view, people’s health awareness is constantly improving, and their pursuit of high-quality medical services and a better life is constantly improving; China’s market industry system is complete, and it is an important hub for global manufacturing. The consumer demand of China’s 1.4 billion people constitutes a super-large-scale The domestic market strongly supports the domestic and international dual cycles.
The huge potential consumer market also needs a more optimized business environment and more targeted service work to “thread the needle”.
“This year marks the 45th anniversary of reform and opening up. China will unswervingly expand high-level opening up and continuously optimize the business environment, providing important confidence for multinational companies like Johnson & Johnson to continue to develop in China.” Song Weiqun said.
Song Weiqun said that the government has been emphasizing innovation-driven high-quality development over the years.
Whether it is the accelerated review policy of the State Food and Drug Administration for innovative medical products, or the green channels for pilot areas such as Boao and the Greater Bay Area, it will help our world-leading innovative products enter the market faster and serve China common people.
”After the Spring Festival, the recovery of industrial production is gratifying. Governments at all levels work overtime to help enterprises, think about what enterprises think, and worry about what enterprises need. I feel that the government really treats the affairs of enterprises as their own affairs and runs for us. Run forward and back.” Song Weiqun said with emotion that he has great confidence in the improvement of the Chinese government’s business environment and has also seen positive measures and actions.
Continuously improve localization strategy
Having been deeply involved in the Chinese market for more than 30 years, Johnson & Johnson realized that the Chinese market is huge and has great growth potential, and is fundamentally different from other international markets. It is imperative to adjust and improve the localization strategy.
To make a localization strategy, we must first have local talents who can understand the Chinese market.
Song Weiqun mentioned that Johnson & Johnson China has basically achieved 100% localization from executives to front-line employees.
The board of directors of Johnson & Johnson China is all Chinese, can speak Chinese, and has overseas work experience. They understand the global operating system and the characteristics of the Chinese market, and combine global strategies with Chinese strategies.
Johnson & Johnson China Suzhou Industrial Park.
Photo courtesy
On the web of soft power woven by talents, it is also necessary for the supply chain to create such hard core power.
Based on this, Johnson & Johnson has large-scale high-end supply chain production bases in Beijing, Shanghai, Suzhou, Xi’an, Guangzhou and other places, with a total investment of 700 million US dollars.
The Johnson & Johnson Medical Science and Technology Park in Suzhou is included in the World Economic Forum’s “Global Lighthouse Factory”; the pharmaceutical production base in Xi’an is equipped with top-notch automation and advanced technology to support accelerated technological innovation and drug listing.
Song Weiqun said that in the future, Johnson & Johnson will further invest in innovation, continuously improve local high-end intelligent manufacturing capabilities, and truly consolidate the strategic position and important role of China’s local supply chain in the global system.
Unswerving focus on innovation
”In 2022, Johnson & Johnson’s global revenue will be about 94.9 billion U.S. dollars, and the global R&D investment will exceed 14.6 billion U.S. dollars.” Song Weiqun did not deny that innovation is the magic weapon for the company’s sustainable development.
It is understood that China is not only one of the fastest-growing markets for Johnson & Johnson’s global business, but has also become the company’s innovative strategic market.
Every department of Johnson & Johnson China has end-to-end R&D capabilities. China is the only market outside the United States where Johnson & Johnson has established R&D centers or R&D departments in all major businesses.
In 2019, Johnson & Johnson established JLABS@Shanghai, the world’s largest and Asia-Pacific’s first innovation incubator, in Zhangjiang, Shanghai, becoming the first institution recognized by the Shanghai Municipal Government as an open innovation platform.
Up to now, a total of 74 start-up companies have settled here, covering fields such as medicine, medical equipment, and consumer goods.
Among them, 48% are local enterprises and 52% are international enterprises.
”Provincial governments have made great efforts to promote innovation, that is, how to recognize the market value of innovation after innovative products enter the market. In this regard, we have very deep experience in Shanghai, Jiangsu and other places.” Song Weiqun He said that Johnson & Johnson is actively promoting the construction of an innovative ecosystem, and the JLABS platform created hopes to provide “check-in” services, so that innovative companies can quickly and concisely implement innovative technologies in China and serve the Chinese people.
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