US network equipment maker Cisco Systems said that it will allocate $1 billion to support its newly unveiled “Cultivated Innovation Model” to boost local innovation in China, as part of its $16 billion investment commitment in the country.

The model, Cisco said, will help it and its partners and customers accelerate their time to market span as they pursue new local and global market opportunities.

The new model “is aimed at boosting local innovation through capital, technology, process expertise, incubation resources and leadership investments”. Cisco’s Chief Executive Officer John Chambers said at the unveiling ceremony “Our innovation initiative and the establishment of the lab are clear examples of our commitment to the country, and our focus on the long-term growth potential.”

The US network giant has already picked up three Chinese counterparts under the new business model. It will collaborate with Technovator, a building automation and technology company founded by Tsinghua Tong Fang. The US Company has already made investment into DigiVision, a Shanghai-based video technology firm. And it has also partnered with Ambow, a leading provider of e-learning technologies and education services in China, to explore the business models for connected cities and connected schools.

The US network giant is also carrying out similar plan in South Korea, according to media reports. Cisco, which has $34 billion cash hoard, is also planning to set up a research center in South Korea and invest or lend $500 million in the country’s technology and telecom sectors, according to South Korea media.

This news from China electronics manufacturer.