The surge of United States high-tech firms offshoring operations to China was driven by economic incentives of the early 1990s, low costs of labor, and ample access to an abundance of resources required in high-tech manufacturing. The dawn of the 21st century served as the advent of technological advancement and innovation in congruence with China’s rapid ascension as a prime high-tech manufacturing hub. However, increased allegations of foreign intellectual property (IP) infringement in outsourced research and development (R&D) and manufacturing on behalf of China’s state-owned enterprises (SOE) have evoked concern amongst international speculators, who allege China of weakened intellectual property enforcement and collusive tactics with state-owned enterprises in the cultivation of an anti-competitive marketplace. This thesis applies a trilateral approach to determine the optimal legal, supply chain management, and business strategies to safeguard the intellectual property of high-tech firms with outsourced operations in China.<br/><br/>Firstly, this thesis explores China’s rapid acceleration of manufacturing capabilities in tandem with nationalist initiatives, historical background, and subsequent influence cultural notions; aspirations in attaining global dominance as a high-tech innovator via nationalist programs and incentives. Succeeding is a comparative analysis of intellectual property between the United States and China, associations between intellectual property protection and economic development, and global intellectual property agreeance as set forth by the World Trade Organization (WTO). Following is a legal analysis of China, which assesses legislation, judicial structure, and litigation. Lastly, is an assessment of supply chain management in China, which assesses high-tech outsourcing practices, the vulnerability of intellectual property in research and development, instances of patent infringement, unfair licensing practices, and trade secret misappropriation.

In the end, an increase in repurchases of company stock will also influence the rate of dividends to increase. This means, an investor should not necessarily worry about the dividends they receive, but rather to see if the company is making profit at a consistent rate and reinvesting into value-added activities. Through the major pillars of finance, technology, legal, and human resources, the budget for reinvestment can be optimized by investing into these respective categories with percentages that are mindful of the specific companies needs and functions. Any firm that chooses to ensure proven methods of growth will enact a combination of these four verticals. A larger emphasis on finance will branch out efficiency in the entire organization, as finance control everything from the toilet paper to the acquisitions the company is making. The more technology is used to reduce redundancy and inefficient or costly operations, the more capability the organization will have. IT, however, comes with its technical challenges; having a team on-hand or even outsourced, to solve the critical problems to help the business continue operation. Over-reliance into technology can be detrimental to a business as well if clear processes are not set about straight to counteract problems the business will face like IT ticketing systems or recovery and continuity support. Therefore, technology will require a larger chunk of attention as well.

The upcoming legal and HR investments a company will make will depend upon its current position and thus the restructuring will differ for every firm. Each company has its own flavour and style of work. In that regard, the required legal counsel will vary; different problems will require different solutions for risk control and management, which are often professionally advised by intelligent corporate counsel. This ability to hire efficient legal counsel would not arise in the first place if a firm were to give out dividends; the leftover profit would have gone towards the shareholders and not back into growing the equity of the business. Lastly, nothing is possible without the contribution of people, and their efforts. A quality that long-lasting, successful businesses have, is they are investing in their people and development. Paying salaries, insurances, bonuses, all requires extra capital that is needed to be set aside in order to grow human capital. Good people, better people. There are qualities for each role that need to be defined and a process for attracting talent needs to be invested in. This process can also include outsourcing to an external firm who specializes in these strategies. By retaining profits internally, the company is able to stretch its legs to have further reach upon the market they work in. Financially and statistically, dividends are likely to grow as well with the increase in equity due to the increase in security an investor feels with more cash reserve and liquidity within the company.

All in all, a company should not be pressured into giving out periodic payments in predetermined timeframes, in other words a dividend, to investors even when they are insisting. Rather, pitch and prove, a new method for reinvestment within the company that will raise the value of the company, through proven methods like the value chain model, to increase the equity in the company. By expanding the scope and capability, the company is allowing for a larger target market which will reap more benefits; none of it would be possible if it had continued to give out large percentages of capital to investors as dividends. Companies, and investors, should not be worried about dividends at all as a matter of fact; an increase in stock buyback, in other words reinvesting into the company, will increase the rate of dividends anyway, due to increased confidence and capital within the company.