Strengthening China's Technological Capability

China is increasing its outlay on research and development and seeking to build an innovation system that will deliver quick results not just in absorbing technology but also in pushing the technological envelope. China's spending on R&D rose from 1.1 percent of GDP in 2000 to 1.3 percent o...

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Bibliographic Details
Main Author: Yusuf, Shahid
Other Authors: Nabeshima, Kaoru
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a E-Business 
653 |a Engineering 
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653 |a Rural Development 
653 |a Industry 
653 |a New technologies 
653 |a Education 
653 |a ICT Policy and Strategies 
653 |a Agricultural Knowledge and Information Systems 
653 |a Technological capabilities 
653 |a Private Sector Development 
653 |a Technological Capability 
653 |a Tertiary Education 
653 |a Innovations 
653 |a Electronics 
653 |a Nanotechnology 
653 |a Agriculture 
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520 |a China is increasing its outlay on research and development and seeking to build an innovation system that will deliver quick results not just in absorbing technology but also in pushing the technological envelope. China's spending on R&D rose from 1.1 percent of GDP in 2000 to 1.3 percent of GDP in 2005. On a purchasing power parity basis, China's research outlay was among the world's highest, far greater than that of Brazil, India, or Mexico. Chinese firms are active in the fields of biotechnology, pharmaceuticals, alternative energy sources, and nanotechnology. This surge in spending has been parallel by a sharp increase in patent applications in China, with the bulk of the patents registered in the areas of electronics, information technology, and telecoms. However, of the almost 50,000 patents granted in China, nearly two-thirds were to nonresidents. This paper considers two questions that are especially important for China. First, how might China go about accelerating technology development? Second, what measures could most cost-effectively deliver the desired outcomes? It concludes that although the level of financing for R&D is certainly important, technological advance is closely keyed to absorptive capacity which is a function of the volume and quality of talent and the depth as well as the heterogeneity of research experience. It is also a function of how companies maximize the commercial benefits of research and development, and the coordination of research with production and marketing