Neusoft

Neusoft Corporation

    Overview: Software from China for the World

    Neusoft Corporation was founded in 1991 and measured by its revenue is the largest Chinese software company. It is mainly operating in the fields of software, IT service and medical systems. Neusoft provides IT solutions, industry solutions and data processing in these fields.

    In 1988, the company arose from a computer software and network engineering research lab, which was founded by Dr. Liu Jiren. Three years later, OPENSOFT System Development Company was incorporated, and in the midst of the 1990s was finally named Neusoft. The name Neusoft is a combination of Northeastern University and the word "Software".

    Neusoft is one of the largest Chinese software companies
    Neusoft operates six software bases, eight regional headquarters and a comprehensive marketing and service network in over 40 cities across China.


    Internationalization Strategy: The big Ones as Partners

    Overseas markets and cooperation with foreign companies are a very important part of Neusoft's business. Its products are sold in more than 60 countries to around 9,000 customers.

    Neusoft cooperates with the leading software companies worldwide
    For Neusoft overseas markets are not only important to sell its products, but also to establish strategic alliances with foreign companies. In 2004, the company signed a joint venture with the Dutch company Philips to develop and manufacture CT scanners, ultrasound and x-ray equipment. Nine years later, Neusofts's wholly-owned subsidiary, Neusoft Medical System Co. Ldt., is willing to buy 51 percent of Philips shares. As a result, Neusoft hopes to strengthen its product innovation and to accelerate its global presence.

    A further strategic alliance was set up in 2006, when Neusoft started to cooperate with the German software giant SAP. This cooperation aimed the development of an ERP-system (Enterprise Resource Planning) for small and medium sized companies in the Chinese market.

    Next to the above mentioned cooperation, Neusoft did also establish alliances with companies like Microsoft, IBM, Intel, BMW and several others.

    Furthermore, the company established subsidiaries in its key markets, including North America, Asia, Europe and the Middle East.


    R&D and Intellectual Property: Strategic Alliances as Innovation Aid

    Neusoft was founded at the North Eastern University in China and therefore has a strong connection towards R&D. Today, the company has six China based R&D centers and three in other countries, including the US, Japan and Vietnam. Next to its own R&D centers, Neusoft uses strategic alliances with external companies to generate new innovations.

    The following graphs represent the patent and utility model applications of Neusoft. The main difference between a patent and an utility is the durability and the strength of protection. Patents are protected for twenty years, while utility models are only protected for ten years. Thus, an utility model can be described as a weaker form of patent.

    The chart below depicts the distribution of applications over time. The first patent applications were filed in 2001 and during the following years, the numbers of applications slowly increased. The first big boost of patent and utility model applications can be observed in the year 2006. From this year on, the number stagnated on a level with more than 25 applications per year. The increase in 2006 could be the result of the foundation of a biomedical and information engineering school in 2005 and the establishment of strategic alliances with SAP and Intel in 2006. After the number of patent and utility model applications reached its maximum in 2009, a strong decrease in 2010 can be observed. This can be seen as a result of the search mechanism of the patent and utility model applications. The results of 2010 could exhibit some deviations, as the applications are made public eighteen months after their registration.

    Neusoft filed most of its patent and utility model applications in its domestic market. Only few applications were registered at external patent offices. The low number of overseas applications is surprising, as the company operates three overseas R&D centers. In the period 2005 to 2007, the location of Neusoft's overseas R&D centers is visible (Japan and the US). Later on, the focus is spread across more regions, including the worldwide patent office (WIPO) and the one of Germany.

    The next two charts show the distribution of Neusoft's applications across the different technological areas. The patent and utility model applications illustrate a typical distribution for a software company. Information technology accounts for 35 percent of all applications, followed by medical technology, one of Neusoft's main fields of operation and analysis, measurement and control technology.


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