As the global electric motor manufacturing sector steadily shifts towards digitization, sustainability, and green initiatives, Japan-based Nidec Corporation has emerged as a key player in this trend. With a focus on technological innovation to empower the motor industry, Nidec has found a strategic advantage for innovation and growth in China, thanks to the country's robust intellectual property (IP) protection environment.
Favorable business environment attracts continued investment
Since its founding in 1973, Nidec has established over 300 group companies across more than 40 countries and regions worldwide. By March this year, 98 of those companies were located in China. "Our group has tailored its R&D to align closely with the Chinese market, setting up research teams in cities such as Dalian, Pinghu, Suzhou, Qingdao, Dongguan, and Shenzhen," said Sun Zhuoyan, head of Nidec's IP Department in Dalian. To cater to the needs of Chinese clients, Nidec has implemented strategies focusing on shorter delivery times, lightweight, thin, compact, and small products, as well as low costs, which have contributed to the company's growing market share in China.
Since 1998, Nidec's group companies have gradually moved into the China-Japan (Pinghu) Industrial Cooperation Park in Zhejiang. Today, Nidec Pinghu Industrial Park, which consists of 17 group companies, spans multiple sectors, including electric motors, new energy vehicle battery, motor and electronic control systems, engineering equipment, testing devices, and services, making a significant contribution to the local economy.
Why has Pinghu become the city where Nidec has the widest industrial footprint, largest investment scale, and most companies in China? According to Sun, this is due to the high-caliber business environment and comprehensive IP services available in the city.
"Most of Nidec's core patents are filed in Japan, and the Pinghu Economic Development Zone has assisted Nidec's companies with compliance for patent usage and customs clearance. They have also encouraged and actively supported patent applications for products sold domestically. To date, nearly 40 invention and utility model patent applications have been submitted," said Song Danhong, Director of the Pinghu Economic Development Zone.
In recent years, China has introduced policies such as high-tech enterprise certification to promote technological transformation and foster innovation within companies. Leveraging these policies, Nidec has consistently increased its R&D investments and enhanced its teams' capabilities, developing core proprietary IP. Six of Nidec's group companies in China have been certified as high-tech enterprises, and the company holds around 3,500 valid invention and utility model patents in China.
"Many cities, including Pinghu, have also introduced policies such as the certification on specialized and sophisticated enterprises that produce new and unique products. Local IP administrations regularly organize training sessions on IP-related policies and knowledge for businesses. These initiatives have significantly heightened our awareness of IP and boosted innovation, and they have also made us feel China's strong commitment to IP protection," added Sun.
Strong protection of innovations boosts investment confidence
As an innovation-driven company, Nidec places a high priority on IP protection, and its patent applications in China have been steadily increasing. At the end of 2011, Nidec established its own IP department in China, ensuring timely and effective protection of the innovations generated by its local R&D teams.
"IP has become an integral part of every project we undertake. Researchers and IP specialists maintain communication throughout each stage of development, identifying and protecting key innovations, while also ensuring that we do not infringe others' IP rights," explained Sun. Nidec's IP department has also prioritized educating its employees about IP and has implemented an invention management system that rewards employees for their contributions to job-related inventions, further fostering their enthusiasm for innovation.
Operating within the motor manufacturing sector, Nidec faces challenges like "difficulties in gathering, presenting, and preserving evidence", which are common concerns for R&D companies in the field. "Our products are primarily motor components or production equipment, and our business model is mainly B2B (Business to Business). As a result, when facing competitors who copy our designs, securing evidence is one of our main challenges," Sun noted. He suggested establishing smoother and more accessible channels for collecting evidence to help reduce the cost of protecting IPs.
"The time from submitting a patent application to receiving approval in China has been significantly shortened, and the quality of examination has also improved. Relevant authorities have provided platforms for public comments during the examination process. These measures reflect China's commitment to IP protection and show how the system is continually being refined. Nidec is accelerating its global expansion, and with China offering the utmost sincerity, the best services, and the highest efficiency, it has created a first-class innovation environment for our group. We are full of confidence in continuing our investments and business in China," Sun concluded.