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Growing R&D spending in hi-tech manufacturing drives quality development
Updated: August 5, 2019 19:27 People's Daily/ english.www.gov.cn

China’s scientific and technological innovation has gained diversity and jumped forward to become a significant part of the country’s modern economic system. Since the founding of New China, especially after the reform and opening-up, it has become a major force to improve social productivity and people’s living standards in China.

Enterprises are becoming more proactive and dynamic in innovation. In 2017, China’s R&D spending by enterprises reached 1.35 trillion yuan, 76.5 percent of the nation’s total. And nearly 40 percent of enterprises above designated size in China have carried out innovative activities. By the end of 2018, there were a total of 1,480 national enterprise technology centers registered in China.

More enterprises propel themselves through scientific and technological innovation, and they see it as crucial to their survival and development. Their growing demands in this regard have largely boosted innovative capability in the whole country.

Pan Jiaofeng, director of the Institute of Science and Development at the Chinese Academy of Sciences, said the higher the proportion of enterprises’ investment in society’s total R&D spending, the more science and technology-oriented is that industry. The ratio of R&D investment by government and society in China — 1 to 3 (same as in developed countries) — indicated enterprises’ growing consideration of innovation.

A scientific and technological innovation mechanism has taken hold in China, consisting of diverse factors such as R&D expenditure, R&D staff size and patents applied and authorized, which have all been increasing rapidly and steadily.

In the current phase, where China’s economy is shifting toward more steady and quality development with optimized structure, scientific and technological innovation has added new momentum and advantages to industrial upgrades and generated new industrial forms, vigorously enhancing industries toward the middle and high-end.

In 2017, hi-tech manufacturing enterprises above designated size in China earned 15.9 trillion yuan in main business revenue, 55.8 percent higher than in 2012. R&D expenditure on hi-tech manufacturing gained 83.6 percent since 2012, with an average annual growth of 12.9 percent. The number of national hi-tech industrial development zones has risen from 27 in 1990 to 168 in 2018, and the number of enterprises in the zones has grown from 1,600 to 117,000.

Deputy Director of the Chinese Academy of Science and Technology for Development Sun Fuquan said hi-tech manufacturing, as part of the real economy, plays a supportive role in the modern economic system.

In 2017, China's industrial enterprises above designated size earned 19.2 trillion yuan for new product sales revenue, 16.9 percent of the main business revenue. And 82.4 percent of R&D projects are aimed at developing new products or improving products’ functional quality.

This means product supplies with better quality are being provided to meet the demand of the market, and that supply-side structure has been optimized by scientific and technological innovation, said Party secretary Zhao Zhiyun, from the Institute of Scientific and Technical Information of China.

For example, hi-tech products and equipment from China, such as high-speed railways, nuclear power and communications equipment, became world-renowned and are supplied to foreign markets. Steel, cement and other traditional industries have also added more value through innovation.

The transforming power of scientific and technological innovation comes from its ability to provide better products and life conditions, which are what Chinese consumers increasingly are in need of today. Therefore, securing scientific and technological innovation, promoting innovation and creativity, and enhancing the quality of supplies are catalyst to a new and better development.

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