R&D in China
CEIC Gallery/Macro - November 30, 2015 INTRODUCTION As the world’s second largest economy, the scale of China’s manufacturing industries has outperformed US’s since 2010. However, China still falls behind in manufacturing technology and innovation compared to developed countries, which makes cost the only advantage in most of China’s products and hinders China from having further growth on external demand. To cope with this issue, the Chinese government has announced the strategy of “Made in China 2025” in May 2015. The main idea of this strategy is to improve the quality, innovation and hence competitiveness of China-made products to a certain level by the end of the year 2025. The government has listed out 10 priority industries. These industries are expected to obtain more research and development (R&D) resources from the central governments. In the charts and tables below, we have listed the 10 priority industries, shown the export and import figures in China, and how the R&D resources are spent in China. They can be a good reference of how the “Made in China 2025” strategy is being implemented in China. Table 1 & Chart 1
- As show in Chart 1, China's year-on-year export growth has been declined over the past years. The growth was mostly negative in 2015.
- The implementation of "Made in China 2025" is one of the keys to drive higher external demand. The 10 priority industries benefited from this policy are listed in Table 1.
- Chart 2-4 show the distribution of total R&D expenditure in China by different classifications, while table 2-4 show the corresponding percentage figures. Table 4 provides a further break down of the R&D expenditure allocation on high technology industry.
- As shown in the charts and tables, R&D resources are mostly spent on experimental development, and mainly carried by enterprises. There are more R&D resources in manufacturing industry.
- Expenditure Intensity is calculated by R&D Expenditure divided by sales amount.
- Chart 5 shows the expenditure intensity of overall secondary industry, and that of the three breakdowns of secondary industry: Manufacturing, Electricity, Gas & Water and Supply(EG), and Mining.
- Chart 6-8 provide the expenditure intensity of the further breakdowns of Manufacturing, Electricity, Gas & Water Production & Supply(EG), and Mining. For Chart 8, users can select the 8 manufacturing industries to be displayed in the chart.