After a pause for a while, Lin Qi continued to give a speech:

"What I am most proud of is the growth rate of technology investment in the new entrepreneurship system, which far exceeds the profits in marketing, shareholder dividends, etc.... Since the establishment of the company, our cumulative budget for R&D has been 40 billion US dollars. Based on the investment of 15 billion US dollars last year, the cumulative investment of our next year will exceed 50 billion US dollars or even 60 billion US dollars. By the end of this century, we should be able to invest more than 100 billion US dollars in R&D!

It can be said that on this planet, there has never been that company that has invested heavily in scientific and technological research and development like us.

Even some old high-tech companies, such as General Electric and the invention factory established by Edison, invented many world-changing products such as electric lights, electric cars, movie projectors, etc., when their companies were most dynamic, once upon a time, General Electric was dominated by invention geniuses like Edison, and was keen on using invention innovation as the company's core competitiveness. Now... Although General Electric is larger in scale and has inertially invested some funds in product improvement and invention, there is no doubt that this company is more inclined to be more inclined to be more popular.

We tend to use capital operation and management as our core competitiveness. From the continuous appointment of management talents by GE and the addition and subtraction of projects and mergers and acquisitions to increase profits, we can know that this company is already a large company that has lost its soul. Since this large company gradually focuses on management and capital operation, rather than technological innovation, its disruptive products have become less and less. Basically, it relies on the brand reputation accumulated in the past and the monopoly-level high-threshold technology that it has mastered before to maintain profits.

I can assert that General Electric will remain profitable in the future, but its long-term stock price will not outperform the market average, nor will it exceed the annualized return rate of the S&P 500 Index, and even the return rate of this company will not exceed the annualized interest rate of buying US Treasury bonds. The reason for this is that the company that once used innovation as its core competitiveness will definitely drop to an extremely low level once it becomes mediocre.

Similar to General Electric, IBM is also similar to that of General Electric. I can also foresee that in the long run, the return rate of such companies will definitely be lower than the market average...

All these high-tech enterprises in the past, with innovation and R&D as the core, but now they are enterprises with management and capital operations as the core. Professional managers receive far more rewards than technical personnel. Then, I can conclude that this enterprise is not worth investing, and will not have a low return rate above the market average in the long run. Unless... the stock price of such a company falls below its net assets and reaches below its net assets, it will have the value of cigarette butt stocks. Otherwise, there will be no investment value at all, and it will not outperform the market."

For a moment, the entire company was silent.

After all, IBM and General Electric have always been regarded as industry models. These companies are awesome in various education and technology. You should learn from these awesome companies.

However, Lin Qi was a ruthless person and directly proposed that these companies will be very mediocre in the future, which obviously makes people feel that it will be difficult to accept for a while.

But this is the fact that these mythological big companies will not only not be able to compare with companies like Microsoft and Intel, but even the rising stars Google, Amazon, Facebook, etc., are also rushing to IBM and General Electric for ten thousand feet.

Not only can we not compare the returns with these celebrity companies, but we can compare with ordinary companies in the market, IBM and General Electric, which also seems to be much worse than mediocre companies. The S&P 500 and Dow Jones Index represent the average market return rate, while IBM and General Electric's annualized returns will not only be much lower than these indexes in the future, but also, the return rate of far inferior bonds is barely similar to the growth rate of US GDP.

It can be seen that these giants who have entered the altar and are considered to have excellent, advanced management capabilities, huge moats and brand competitiveness, are actually on the decline, completely relying on the old capital, and continue to survive by relying on the customers and brand influence accumulated in the past.

In particular, later, IBM began to hire Indians in order to reduce costs, which was almost a tragedy. India's population is very popular, and likes to join groups and PPT, and the concept is better than Americans. Under the governance of Indian executives, the financial report is even good in the short term. However, after a long time, it will be found that Indians cut off all long-term strategic projects, leaving only short-term fast projects that have achieved results in the short term. High-tech enterprises, introducing Indian executives, are equivalent to digging their own graves.

Although Chinese people are under heavy suppression in the technology industry, basically many Chinese CEOs who are in danger are experts in technical skills and engineering. They have continuous innovation and quickly surpass their opponents in technology to maintain their advantages. For example, the later Silicon Valley graphics card companies were almost all founded by Chinese.

AMD later struggled almost on the verge of bankruptcy and appointed Chinese CEO Su Zifeng. As a result, four years not only reversed AMD's long-term loss situation, but even exceeded Intel's CPU shipments in terms of personal computers. This kind of thing that was considered impossible was actually done by CEO Su Zifeng, who was born with technology. In the past four years, AMD's stock price also soared, becoming the highest performer among Silicon Valley listed companies in the same period of time.

This is not only the difference between using Indians as executives or using Chinese as executives, but also the difference between paying attention to management and concepts and paying attention to hard-core technology!

Hard-core technology will not achieve results in the short term, but once the product is really successful, the competitiveness will be so strong that the market will be stunned.

Only if the technical level is not good can the technology be said to be useless and management and marketing can achieve better results. However, if you really have hard-core technology, if you invest one dollar in marketing, the effect you can achieve will be obvious by the 100 yuan marketing effect of garbage products. Because, the product is so strong that it is a certain level, fans will really not have money to recommend it everywhere for free.

"In addition, Japanese large companies, such as Sony, Panasonic, Sharp, etc., have invested less and less in R&D in recent years, and most of them are improvements, rather than disruptive and amazing products. Moreover, with the deleveraging of Japan's economy, Japanese companies' R&D budgets have been continuously reduced. It is conceivable that these companies will find it difficult to achieve good performance in the long run in the future.

I don’t like these self-degenerate companies... So, in the future, our new entrepreneurial companies must not do this. Talents who develop and innovate must receive more rewards than management teams and professional managers. The one with the highest average income in our company must be those who engage in basic and innovative, rather than management and marketing talents!

Of course, I am not saying that management, marketing, and service are not important, but in the long run, these are only short-term competitive advantages. The real long-term competitive advantages are that we have unparalleled innovation motivation, and can constantly invent products that are not available on the market, change the needs of future consumers, and reconstruct the future world with products.

On the one hand, we will give equity incentives to excellent technicians, but what if we can't get equity incentives? Product development in the new entrepreneurial department will distribute dividends to technicians based on the market performance of the product. Some product technicians even get more benefits than the company's shareholders. It is precisely because of this that the technicians, even if they join late, have real goods in their stomachs and can develop more valuable patents or products. So, basically, relying on patent dividends and product dividends is enough to make many employees become millions, millions or even billionaires.

To tell a joke, last year, Taiwan's TSMC went to our subsidiary Xinchuangxin to poach Taiwan technicians. The other party offered a "sky-high price" of US$15,000 per year, thinking that this salary would make our technical backbones change jobs. As a result, our employees impatiently said to TSMC people, "I'm sorry, my basic salary is not high, but it is only used for daily consumption. The real reward comes from working in Xinchuangxin for three years, adding 7 international patents and 19 Chinese patents to the company. Although the patent ownership belongs to the company, the patent inventor can get 10% of the patent rights, so for these patent inventions alone, the dividends will be no less than 3 million yuan per year. These patents have been applied to products of the new venture system within three years. The authorization fee is more than 30 million yuan, and employees with invention patents can directly get 3 million yuan.

As a result, the person who poached TSMC was stimulated, and the other party quickly turned around to find a job in Xinchuang. Now, the person who came to poach has joined Xinchuang, and with the rewards in terms of technological innovation, the annual income is about 700,000 yuan.

After this incident, several major semiconductor companies in Taiwan, such as TSMC, have banned their technicians from communicating and contacting us, and have no courage to come and poach. Because poaching is a humiliation, it will make the other technicians feel poor and then jump to our position.

Technicians who originally worked in Taiwan, the United States, Japan, Europe and other places may not have a patent invention a year. After people arrive at us, they may have three or five patent inventions a year. Moreover, patent inventions are all useful patents, because the commission we give patent inventors is that patent inventions are applied to products and can only obtain market-oriented sharing when they generate value. Invalid inventions without value cannot make the inventors rich.

At present, the company holds nearly 200,000 inventions, all of which are shared with patent inventors. Through this sharing mechanism in a year, nearly 3 billion US dollars will be distributed to R&D talents. Over the years, there should be more than 10 billion US dollars in share, rewarding employees who contribute patent inventions. This continuous incentive mechanism makes truly capable people willing to contribute their abilities and talents!

Our core technical personnel are about 20,000, and each person contributes 10 patents on average. It is very common for core technical talents to have an annual income of more than 1 million yuan. The quality of patents is slightly higher, and a single patent may bring millions and tens of millions of yuan to the inventors a year.

It can be said that the average income of technological innovation talents should be the highest group of people in our new entrepreneurial department.

But I think the money is worth spending. In the future, we will still allow technical talents to obtain the world's top return rate...

Because good steel should be used on the edge. As high-tech enterprises, we do not pay attention to equality or fairness!

Because there is no way to be fair, and too much consideration of mediocre talents is the greatest injustice to geniuses!

The value of genius and ordinary people is different. A genius may create value that ordinary people cannot catch up with in their lifetime!
Chapter completed!