China will this year for the first time spend more on research and development (R&D) than Japan and so become the world's second highest investor in R&D after the United States, according to OECD projections based on recent trends.
"The rapid rise of China in both money spent and researchers employed is stunning," said Dirk Pilat, Head of the OECD's Science and Technology Policy division. "To keep up, OECD countries need to make their research and innovation systems more efficient and find new ways to stimulate innovation in today's increasingly competitive global economy."
Based on recent trends trends, China will spend just over US$136 billion on R&D in 2006, just over Japan's forecast US$130 billion. The United States is predicted to remain the world's leading investor in R&D in 2006, spending just over US$330 billion. The EU-15, which includes France, Germany and the UK, is predicted to spend just over US$230 billion.
Figures for 2005 and 2006 are projected on the assumption of a continuation of growth in R&D spending last year and in 2006 at the same average rate as was observed over 2000-2004.
China's spending on R&D as a percentage of GDP, known as R&D intensity, has more than doubled from 0.6% of GDP in 1995 to just over 1.2% in 2004. In current prices, this represents an increase from just over US$17 billion in 1995 to US$94 billion in 2004. And it is growing even faster than the economy which is growing by between 9 and 10% a year.
The report gives a comprehensive review of key trends and developments in science, technology and innovation policy in OECD countries.
Among other things, it finds that in China, the number of researchers increased by 77% between 1995 and 2004. China now ranks second worldwide with 926 000 researchers, just behind the United States (more than 1.3 million), and Russia ranks fourth. Singapore employs more researchers per thousand of total employment than the OECD average."
Posted to the site on 5th December 2006
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