As a leading innovator in the global technology landscape, we at BYD have built our success on a robust framework for managing research and development (R&D) activities and cultivating technological capabilities. Over three decades, we have evolved from a startup into a multinational corporation spanning automotive, electronics, new energy, and rail transit sectors. Our approach centers on a “three-end coordination” system—integrating input, process, and output ends—while driving growth through “element organization” and “result transformation” capabilities. This article delves into our practices, emphasizing how we leverage this model to enhance competitiveness and contribute to technological advancement. We will explore our R&D management, talent strategies, and innovation outcomes, with a focus on our BYD EV and BYD car offerings, using tables and formulas to summarize key insights.
In the input end of R&D management, we prioritize the strategic allocation of resources, including funding and personnel, to fuel innovation. Since 2018, our annual R&D investment has consistently surpassed net profits, underscoring our commitment to long-term growth. For instance, in 2024, our R&D expenditure reached 54.2 billion yuan, representing a 35.68% year-over-year increase. This sustained investment has enabled us to build a massive engineer team, now exceeding 120,000 members, up from 10,000 in 2007. We harness China’s demographic advantages through methods like “human + fixture = robot,” which optimizes cost efficiency and fosters innovation in manufacturing. Our focus on R&D inputs ensures a solid foundation for developing cutting-edge BYD EV technologies and BYD car models, as summarized in Table 1 below, which highlights our resource allocation trends.
| Year | R&D Investment (Billion Yuan) | Engineer Count | Key Focus Areas |
|---|---|---|---|
| 2018 | ~30.0 | ~50,000 | Battery technology, BYD car platforms |
| 2020 | ~35.0 | ~80,000 | Electrification, BYD EV systems |
| 2024 | 54.2 | 120,000+ | AI integration, BYD car autonomy |
The process end of our R&D management involves orchestrating activities to transform inputs into tangible outcomes, with a strong emphasis on talent development, organizational structure, and cultural ethos. We have established a comprehensive talent management system that covers recruitment, training, evaluation, and retention. For example, we actively recruit fresh graduates and provide them with project leadership opportunities, fostering a pipeline of skilled engineers. Our organizational framework includes multiple specialized research institutes, each with distinct roles, as detailed in Table 2. This structure supports the seamless development of BYD EV components and BYD car designs, ensuring efficiency and innovation.
| Institute Name | Primary Responsibilities |
|---|---|
| Central Research Institute | R&D of new materials, product design, industrial technology improvement, and industry incubation |
| Automotive Engineering Research Institute | Development and design of all passenger vehicle platforms for traditional and new energy power, including BYD car models |
| Automotive Smart Ecosystem Research Institute | Innovation in open smart car platforms, intelligent customer relationships, and smart applications for BYD EV systems |
| Truck Research Institute | R&D of new energy trucks and special-purpose vehicles, integrating design, trial production, and testing |
| Bus Research Institute | Focus on new energy bus and chassis development, including verification and order-based design |
| Product Planning and Automotive New Technology Research Institute | Planning for vehicles and components, plus pre-research of new technologies for future BYD car innovations |
Central to our process end is the cultivation of an “engineer culture,” which permeates our operations and drives innovation. This culture emphasizes logical thinking, causality analysis, and standardization, enabling our teams to tackle complex challenges in BYD EV development. We promote knowledge sharing through mechanisms like cross-functional collaborations and technical events, fostering an environment where ideas flourish. The knowledge creation process can be modeled using the SECI framework (Socialization, Externalization, Combination, Internalization), which we apply to enhance organizational learning. For instance, socialization occurs through team interactions, externalization via documentation of insights, combination by integrating diverse technologies, and internalization through mentorship. This can be expressed as a formula for knowledge conversion: $$ K_{org} = S(E(T_c + T_e)) $$ where \( K_{org} \) represents organizational knowledge, \( S \) is socialization, \( E \) is externalization, \( T_c \) is combination, and \( T_e \) is internalization. Such approaches ensure that our BYD car projects benefit from a continuous cycle of innovation and improvement.
In the output end, we focus on translating R&D efforts into valuable outcomes, including intellectual property, specialized technologies, and market-ready products. Our patent portfolio has grown significantly, with over 59,600 applications and 35,800 authorized patents globally by the end of 2024. We have received prestigious awards like the “China Patent Gold Award” multiple times, reflecting our commitment to quality. Key outputs include modular technologies such as blade batteries and integrated systems like the e-platform 3.0, which combine to create distinctive BYD EV offerings. Additionally, we have developed technical brands like “e-Platform 3.0,” “DiPilot,” and “Blade Battery,” which differentiate our BYD car lineup and build consumer trust. Our “technology fishpond” concept serves as a reservoir for前瞻性技术探索, allowing us to pool pre-research成果 and deploy them rapidly when market opportunities arise, such as in response to evolving BYD EV demands.
Our technological capabilities are driven by two core forces: “element organization” and “result transformation.” Element organization involves efficiently configuring resources to build technological potential. We employ vertical integration strategies to align funding, talent, and equipment, creating a resilient innovation ecosystem. For example, our resource allocation model can be represented as: $$ EO = \sum_{i=1}^{n} (R_i \times E_i) $$ where \( EO \) is element organization, \( R_i \) denotes resources like capital or personnel, and \( E_i \) represents efficiency factors. This enables us to manage knowledge flows effectively, converting tacit insights into explicit modules for BYD car development. Result transformation, on the other hand, focuses on catalyzing outcomes into market impacts. We brand our technologies to enhance visibility—for instance, by launching “e-Platform 3.0” for BYD EV systems—and use the “technology fishpond” to store and combine innovations. The transformation process can be modeled as: $$ RT = B(T) + F(M) + E(S) $$ where \( RT \) is result transformation, \( B(T) \) is branding of technologies, \( F(M) \) is fishpond mechanism, and \( E(S) \) is ecological standardization. This dual-core approach ensures that our BYD car innovations not only meet current needs but also anticipate future trends.
Building on our experiences, we have formulated a model for evaluating and enhancing technological innovation capabilities in large enterprises, termed “three-end coordination + dual-core drive.” This model integrates the synergistic management of input, process, and output ends with the dynamic interplay of element organization and result transformation. Mathematically, it can be expressed as: $$ IC = C(I, P, O) \times (EO + RT) $$ where \( IC \) represents innovation capability, \( C \) is the coordination function across input (\( I \)), process (\( P \)), and output (\( O \)), \( EO \) is element organization, and \( RT \) is result transformation. This framework emphasizes that sustained innovation requires balanced attention to all ends, as illustrated in Table 3, which outlines key metrics for each dimension. For instance, in the BYD EV domain, input metrics include R&D spending, process metrics cover talent development rates, and output metrics involve patent counts and BYD car sales figures.
| End Dimension | Key Metrics | Application in BYD EV Context |
|---|---|---|
| Input End | R&D investment, engineer count, resource allocation efficiency | Annual funding for BYD car battery research; growth in EV-focused engineers |
| Process End | Talent retention rates, project completion times, knowledge sharing frequency | Cross-team collaborations on BYD EV autonomy; engineer training programs |
| Output End | Patent awards, technology brand impact, market share growth | Sales of BYD car models with integrated EV systems; adoption of charging standards |
The dual-core drivers further amplify this model by ensuring that resources are not only organized effectively but also transformed into impactful成果. For element organization, we focus on building a knowledge management system that facilitates the SECI cycle, leading to incremental and breakthrough innovations in BYD EV technologies. In result transformation, we emphasize scalability and ecosystem integration, such as by establishing charging infrastructure that supports BYD car users globally. The combined effect can be quantified using a capability growth formula: $$ CG = \alpha \cdot EO + \beta \cdot RT $$ where \( CG \) is capability growth, and \( \alpha \) and \( \beta \) are weighting factors based on organizational priorities. This model provides a practical tool for large enterprises to diagnose and enhance their innovation prowess, as demonstrated by our success in launching competitive BYD EV and BYD car products.
In conclusion, our journey at BYD underscores the importance of a holistic approach to innovation management. By coordinating input, process, and output ends while leveraging element organization and result transformation, we have built a resilient ecosystem that drives continuous improvement. Our practices, from high R&D investments to the “technology fishpond,” highlight how large enterprises can foster autonomy and collaboration. The “three-end coordination + dual-core drive” model offers a scalable framework for others to emulate, with applications extending beyond automotive to various tech sectors. As we continue to innovate, we remain committed to advancing BYD EV and BYD car technologies, contributing to a sustainable and technologically advanced future. Through this narrative, we hope to inspire similar endeavors in the global innovation community.