Huawei is committed to investing in R&D to create competitive products and solutions.
To meet the needs of our customers, we focus on continuous customer-centric innovation. The goal of our product R&D is to deliver timely solutions for both potential and actual customer needs by developing innovations in technologies, products, solutions and services.
The Company has extensively implemented the Integrated Product Development (IPD) process within the R&D function. With thorough comprehension of customers' needs, we significantly shortened the timeline for products to reach the market and therefore helping our customers to achieve success.
In 2010, Huawei continued to increase its R&D investment. Annual R&D expenses amounted to CNY 16,556 million, an increase of 24.1% year-on-year. We have more than 51,000 employees (46% of our total workforce) engaged in R&D and have established 20 research institutes in countries including the USA, Germany, Sweden, Russia, India and China. In addition, we have over 20 joint innovation centers with leading telecom operators where we work in partnership with these operators to transform leading technologies into a competitive edge for customers and helping them achieve business success.
As at 31 December 2010, Huawei had accumulatively filed 49,040 patent applications i.e. 31,869 patent applications in China, 8,892 international patent applications under the Patent Cooperation Treaty, and 8,279 overseas patent applications. Of the 17,765 authorized patents granted, 3,060 were overseas patents. In addition, Huawei holds a leading position in terms of essential LTE patent applications.
Huawei joined, supported and made significant contribution to international standards. By the end of 2010, Huawei was a member of 123 standards organizations, including 3GPP, IETF, ITU, OMA, NGMN, ETSI, IEEE and 3GPP2. We have accumulatively submitted more than 23,000 proposals and served in 180 leadership positions including as board members in various organizations such as OMA, CCSA, ETSI, ATIS and the WiMAX Forum. In the LTE/EPC field, Huawei cumulatively submitted more than 6,400 proposals to 3GPP. In 2010, the number of our proposals on LTE Radio Communication Core Specification passed by 3GPP accounted for approximately 20% of the world's overall accepted proposals.
In 2010, Huawei won the " Solution Excellence Award" at the 2010 Telecom Management Forum (TMF) Management World event and the " Outstanding Contribution and Leadership Award" from Open Mobile Alliance (OMA). Both our Terabit Multi-Service Router Platform and New-Generation Multi-Service Transmission Platform Based On The Synchronous Digital Hierarchy (SDH) won the " Second Prize of the National Award for Science and Technology Progress" from the China government. The CTO of Huawei's Wireless Networks was appointed as a fellow of the Wireless World Research Forum (WWRF).
As a result of our strong innovation capabilities, Huawei competitively earned grants from several government research and innovation programs in 2010. These programs included China's Next Generation Broadband Wireless Networks, Highly- Reliable Networks and New-Generation Storage Technology, the EU's FP, and the BESTSELECT program from the government of Berlin, Germany.