Over 300 foreign-funded R&D centers recognized in Shanghai's Pudong

As of June 2026, more than 300 foreign-funded research and development centers in Shanghai's Pudong New Area had been recognized by the Shanghai Municipal Commission of Commerce, accounting for nearly half of Shanghai's total.

Among them, 13 were recognized as global R&D centers, representing more than half of the city's total in this category.

Under Shanghai's recognition criteria, a global R&D center must have an independent global R&D technology platform and undertake global R&D projects, or key stages and most of the work on global R&D projects conducted by a business unit. Project progress must align with global timelines.

Global R&D networks expand in Pudong

Innomotics GmbH, a manufacturer of motors and large drive systems, operates three global R&D centers for medium-voltage drives. They are located in Germany, the United States, and Shanghai's Pudong.

Turbocharger developer and manufacturer Garrett has established one of its six global innovation centers in Pudong.

Its research has expanded beyond conventional internal-combustion-engine turbocharging to electric-drive systems, electric cooling compressors, and air compressors for hydrogen fuel cells. The Pudong center has end-to-end capabilities spanning basic design, simulation analysis, system validation, and full-system integration, improving the responsiveness and implementation efficiency of Garrett's global R&D system.

R&D centers align with Pudong's industrial strengths

Foreign-funded R&D centers have grown alongside Pudong's major industries.

In 2025, the output of Pudong's integrated circuit, biomedicine, and artificial intelligence industries reached 382.97 billion yuan ($56.6 billion), 449.43 billion yuan, and 198.22 billion yuan, respectively. Their combined scale exceeded 1.03 trillion yuan, up 7.1 percent from the previous year.

This concentration is particularly evident in biomedicine, which accounted for 125 of Pudong's foreign-funded R&D centers, or 42 percent of the total. Other centers operate in sectors including automobile manufacturing, integrated circuits, information technology, and intelligent manufacturing.

Foreign-funded R&D centers also span electronics and electrical equipment, home appliances, consumer goods, environmental protection, food, and new energy.

Diageo, a multinational beverage alcohol company, has established a wholly owned subsidiary in Pudong to develop new products for the Asia-Pacific market.

French pharmaceutical and dermo-cosmetics group Laboratoires Pierre Fabre, whose skincare brands include Avene, operates a Pudong R&D center focused on new product development and formulation upgrades for the Chinese market.

Local R&D results move into commercial use

Some multinational companies are developing intellectual property and products in China for both domestic and global use.

Garrett has about 340 invention patents in China, covering turbocharging technologies and key new-energy applications.

Wang Huan, engineering director of Garrett China, said localizing intellectual property allows the company to better serve the Chinese market while supporting its global innovation network from China.

An edge-intelligence gateway and data exchange platform developed by Innomotics' local team has been delivered to a Chinese steel producer. Developed around the operational needs of Chinese industrial companies, the system has moved from the laboratory stage to large-scale commercial application.

Policy support and a strong innovation ecosystem

Shanghai has introduced 26 measures to support the upgrading of foreign-funded R&D centers. The measures include support for R&D investment, open innovation, lawful cross-border flows of R&D data, and financial support for technological innovation.

Several foreign-funded R&D centers in Pudong have also benefited from tax exemptions on imported research equipment.

Innomotics, which has operated in Pudong for 20 years, said local support has covered both facility expansion and day-to-day operations.

Yang Jianbo, R&D manager at Innomotics Shanghai, said Pudong's manufacturing clusters, supplier networks, and talent policies help companies recruit, develop, and retain talent.

Moreover, Pudong has established 112 Group Open Innovation (GOI) centers, including 47 operated by foreign-funded enterprises. Foreign-funded R&D centers are also forming innovation partnerships with local small and medium-sized enterprises and startups, jointly supporting industrial upgrading.

Supported by Pudong's industrial ecosystem, Garrett plans to bring more locally developed innovations to global markets.

Pudong will continue to support foreign-funded R&D centers in offering cross-border incubation services and accessing relevant policy support for developing sci-tech innovation and entrepreneurship platforms.

The district will also encourage them to establish open innovation platforms, work with local innovation entities on core technologies, and accelerate the application and commercialization of R&D results in Pudong.