Microsoft, Lenovo to develop R&D center in China

Microsoft and Chinese computer maker Lenovo Group have struck a deal to set up a technology center in China to promote research and development (R&D) of new consumer technology and, in particular, mobile devices.

The announcement comes a day before Microsoft chairman Bill Gates plans to speak in Beijing at the Microsoft Government Leaders Forum, an event where government and business leaders from around the world discuss how they can collaborate and use technology to promote health care, socioeconomic development, and education.

Microsoft and Lenovo plan to share a technology center on Lenovo’s corporate campus in Beijing to develop new technologies in mobile devices and other applications that will make Chinese citizens who purchase technology “more productive,” the companies said in a press release.

Microsoft will provide technical training support for the center and share in the R&D efforts. The companies will share technologies and products created at the center with Lenovo’s other R&D labs, and both Microsoft and Lenovo will share the intellectual property of codeveloped projects.

Gates is in China not only for the forum, but also to cozy up to government officials, and is expected to make a broad announcement Thursday concerning how Microsoft will promote global economic and technology development.

China is an especially important market for Microsoft, as the government has favored Linux over Windows for its technology deployments, particularly a homegrown version of Linux from Chinese vendor Red Flag Linux Software.

With nearly 1.3 billion potential customers, China is “a massive market for any company” to target, said Clive Longbottom, founder and analyst with Quocirca technology research firm in London. Microsoft is especially interested in winning over China, which he called the “jewel” of developing technology markets.