Reborn in Hong Kong: The Tycoon Grows Up

Now that the tone has been set, everyone feels much more relaxed. And they all understand what Bao Zixuan means; both parties exchange each other, and no one suffers. As an economist, I often deal with businessmen. When I heard the other party say this, I immediately understood what he meant.

Solo smiled and said: "Of course there is no problem. It is also an honor for me to be able to communicate with you. My strength is in the study of economic theory. I don't have a deep understanding of how to run an enterprise, but I also want to know more about it. .After all, the development speed of Heiyun Group is really amazing, and even now we still don’t understand why it is so fast.”

Why the Heiyun Group is developing so fast cannot be said to be because I have traveled through time and already know the results of many things. If you say this, others will regard you as a lunatic. Fortunately, these richest men are well prepared. After all, if they are asked about it, or when their children grow up, they need to give a clear explanation of their father's entrepreneurial journey.

Bao Zixuan: "In fact, the most important reason why Heiyun Group has developed so fast is the high profits brought by innovation. Then it invests in research and development, which can form a very benign ecological closed loop."

"I like to keep thinking and never stop. I started working in game-related industries because only the Japanese in the world paid more attention to it. European and American countries prefer to develop in other fields."

"You may not believe it, but the two games Pac-Man and Cubes have contributed more than billions of dollars in profits to the group. And they are still growing. After all, in many developing countries, our game consoles are still available. Sale."

“The subsequent Walkmans just felt like they could be completely miniaturized technically; you could listen to music at any time, which would definitely relieve travel fatigue. Later, at MIT, I was exposed to more knowledge and learned more about cutting-edge technologies. Therefore, Only then has the ever-growing Heiyun Group emerged. As for why it has developed so rapidly, it can only be said that it is standing on the trend of the times, and it can also be said that it is at the forefront."

"And there is another key point. Every year, Heiyun Group will use 60% of the profits of the previous year for the next year's research and development. However, this proportion should be the highest among the world's technology companies."

Not only Solo, but also several other people sounded a little confused. I didn’t expect that a small game could be so profitable. What is the concept of profits exceeding billions of dollars? It seems that they only have a superficial understanding of Heiyun Group and do not understand the way of doing business and investment at all.

Although Solo didn't know how much profit the game could make, he wasn't very interested. What really interested him was that 60% of the annual profits of Heiyun Group were used for research and development in the next year. This is absolutely an astronomical figure, and will even exceed the R\u0026D investment of many countries.

It cannot be said that if you invest more money, you will definitely be able to achieve results. But if you don’t want to invest in R\u0026D, it’s probably almost impossible to get results. No wonder Heiyun Group can stand out from the crowd. Most companies cannot do this just with this kind of investment and willingness.

Companies with the scale of Heiyun Group are all listed companies. Every R\u0026D investment they make must be announced to shareholders. If you invest so much money in research and development every year, you won't get any dividends at all. If that were the case, the stock would naturally not be popular.

Problems in the stock market will inevitably affect the development of the company itself. Therefore, no CEO or boss is willing to take risks, and most importantly, they cannot convince shareholders.

As for Professor Solow, he prefers to study economic models.

The neoclassical economic growth model is called the Solow model because of Solow's pioneering work. Until now, the model is still an indispensable part of economic growth theory. In the Solow model, the contribution to overall economic growth is set to be composed of labor, capital and technological progress, and it is assumed that a homogeneous total production function with diminishing marginal production satisfies rice field conditions, a constant savings rate, and technology Conditions for progress to be exogenous and so on.

On this basis, we draw the conclusion that government policies have an ineffective role in economic growth. Although its many harsh assumptions and the ineffectiveness of government policies make people feel negative, Harold and Doma's extremely unstable knife-edge growth model has always made people worry about economic growth in capitalist societies, especially When long-term growth is unstable, the capital accumulation process of the capital increase model proposed by the Solow model will converge to a stable state of economic growth in the long run; this conclusion undoubtedly injects a dose of energy into the economics community that is concerned about economic growth issues. A shot in the arm.

There is a special emphasis on technological progress, but we want technological progress; without large amounts of money invested in research and development, we simply cannot achieve huge technological progress. It seems that I really came to the right place this time; perhaps this world can achieve technological progress precisely because of entrepreneurs like Bao Zixuan.

At the same time, Solow also feels that most of the future entrepreneurs will be technical talents. If you don’t understand it yourself, not only will you not be recognized by capital, you may not be able to deter the technical talents below.

The employees of Heiyun Group can recognize Bao Zixuan not only because of his wealth; perhaps the Turing Award winner and the proposer of Industry 4.0 are more intimidating. If you want to convince engineering and technical personnel, it will be very difficult if you cannot achieve crushing success in the technical field.

Solo: "Three of them are top physicists. I would like to ask you how to apply for research and development funds from Heiyun Group."

This is a touching topic, and can even be said to be a corporate secret. However, Bao Zixuan is not worried about this. Other companies want to follow suit, but it is not that easy.

Bao Zixuan said with a smile: "Since Professor Soluo is interested, you can tell him about it. This is my teacher, and we don't need to keep it secret from him."

Now that the boss has spoken, things will be much easier to handle. Although I don’t understand why it was revealed to the outside world, I may have my own considerations! No one could figure out what the young boss was thinking. Of course, if they could figure it out, Bao Zixuan wouldn't have such a high achievement. How can outsiders know about the world of genius?

Akasaki Isamu: "Like you, I mainly work in the school, and of course I occasionally solve some scientific research problems in enterprises. At present, Yulin Institute of Technology does not have to apply for R\u0026D funds by itself. All financial staff come to the engineering and technical staff office, as long as It’s as simple as writing a report and getting the grant.”

All procedures are handled by financial personnel; technical personnel will devote more time to research and development.

Professor Solo felt incredible after hearing this. I didn’t expect that Bao Zixuan would trust the engineering and technical personnel so much, why don’t they just review it!

In fact, of course there is review, and Mr. Bao himself will also read it. It's just that we allocate money first and review it later. Of course, if you operate it improperly, you will lose some funds, but it is completely within control. And at present, whether it is Heiyun Group or Yulin Institute of Technology! The talents recruited have been assessed at all levels; the real elites are absolute technical masters. For the sake of personal reputation, I really won’t mess around. And applying does not mean that the money belongs to you. Spending money is also a skill.

The company's internal financial staff and accountants from PricewaterhouseCoopers are always ready. Coupled with high salary, high benefits, etc., no one wants to lose such a good job and scientific research environment.

Solo was very surprised and said: "Bao, although I shouldn't ask this, I'm still curious. How will financial supervision follow up after doing this?"

It was very impolite to ask such a question in front of three subordinates. But it is inevitable that curiosity will arise. It is unique in the world that financial personnel go directly to the scientific researchers and send them money.

Bao Zixuan said with a smile: "Don't use doubters and employ people without doubt; this has always been the operating principle of Heiyun Group and myself."

"In fact, there is no need for supervision at all, because it is completely unnecessary. The scientific researchers recruited by Heiyun companies have been selected at all levels. Therefore, there is absolutely no problem in terms of technical level. And the company gives them such a good platform, if there are still Some unrealistic ideas are inappropriate."

"I am a scientific researcher myself, so I certainly know where engineers should focus. Some projects require a large amount of funds, but they cannot produce economic benefits in a short period of time. In addition, we are not a state agency, so we must consider profits."

"To put it bluntly, as much money as I have, it's more like a string of numbers; even if I have ten prodigal children, I probably won't be able to spend it all. Therefore, there is no need to pursue short-term economic benefits and make engineers lose their research and development direction. They don't If you have the nerve to apply, then take the initiative to send money and let them complete the project."

"I am still young. Even if I can't see it, at least future generations will see it. Besides, it doesn't matter if a few projects fail. Enterprises need to spend a certain amount of trial and error costs."