Endowment part of plan to encourage employees to create ICT innovations
21 July 2011, Shenzhen, China – ZTE Corporation (ZTE) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly listed global provider of telecommunications equipment and network solutions, today announced the company’s launch of RMB 100 million venture capital “Innovative Fund” created with the intention of driving innovations from within the company.
When selecting venture capital investments for the fund, ZTE will seek technologies solutions, business models and management processes proposed by its 80,000-strong employee base, including 30,000 research and development personnel.
According to Mr. Hou Weigui, ZTE chairman and chief architect of the venture capital fund, “The creation of this endowment is intended to foster innovative ideas and projects. Innovation is essential and fundamental to ZTE. The fund is one way ZTE is taking action to create ground-breaking new telecommunications solutions.”
The telecommunications industry is undergoing a critical period as much of the technology utilized by the industry is shifting from voice-based to data-based services. This technological shift has resulted in tremendous changes within the industry, including changes in traditional business models related to development and implementation of telecom technologies. It also has created opportunities for investment in the industrial landscape.
The venture capital fund is part of ZTE’s ongoing efforts to stay ahead of changes in technological trends by seeking out investment ideas that will drive both the company and the telecom industry forward. To that end, it will support innovations in operations, strategy and management models, with the intention of creating a testing ground for ideas that break with tradition.
"Mobilization of our employees as creators of ideas for investments for the fund is part our strategy to create bold new concepts and products in the telecom industry,” said Hou. “The Dream Fund as one way for ZTE to test these waters and accumulate new ideas and management experiences.”
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