Careful preparation for reverse innovation

China, with a large talent pool of high-calibre scientists and engineers, is transforming itself from being a low-cost manufacturing hub to a world class R&D centre. This transformation will accelerate as reverse innovation gains greater universal acceptance as the new business paradigm. As a result of this paradigm shift, more individual researchers and research labs in China will be under contract to conduct technology-related research with the expectation of exporting the resulting technology from China. Sponsors of R&D projects in China, however, must take pause to think through the impact of China's new technology export control rules on their project's exit strategy and business objective: securing unfettered rights to use the resulting technology outside China.