Nestlé will open a new research and development (R&D) centre in Beijing in July, housing more than 80 scientists.
The centre will conduct basic research plus applications work on products tailored to meet local market needs, said R&D communications chief Clive Barnes. "We already have more than 20 collaborations with Chinese universities, but this will give us a real foothold on the ground."
The researchers would also explore new ways to incorporate ingredients used in traditional Chinese medicine into clinically proven food and drink products, he added.
Nestlé spent 1.88bn Swiss francs on R&D in 2007 compared to 1.21bn in 2003, and had significantly increased its investment in human and animal studies to support research into emerging areas of health and nutrition, he added. "Five years ago, we were doing 20-30 clinical studies a year; today we are doing 100 a year."
Hundreds of millions had also been earmarked for venture capital funds to be invested in start-up firms with potentially interesting new technologies, he said.
Although Nestlé had more than 4,500 people working in food and beverage R&D, it was also committed to open innovation, or tapping into R&D resources from outside the company, said Barnes.
"Whenever we are selecting and prioritising R&D projects, we always ask, do we have the technology, and would this be better handled in a joint venture? We also have more than 1,000 contracts with universities and research organisations, because we recognise that we don't have a monopoly on good ideas."