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 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.

Bibliographic Details

Main Authors:	Yusuf, Shahid, Nabeshima, Kaoru
Language:	English
Published:	World Bank, Washington, DC 2007-08
Subjects:	3G, ACADEMIC RESEARCH, ACCESSORIES, AGRICULTURAL TECHNOLOGY, AGRICULTURE, ANTENNAS, APPLIANCES, APPLIED R&D, APPLIED RESEARCH, AUTOMOBILE, AUTOMOTIVE, BASIC, BIOLOGY, BIOTECHNOLOGY, BUSINESS ACTIVITIES, BUSINESS ASSOCIATIONS, BUSINESS ENVIRONMENT, BUSINESS INNOVATION, BUSINESS NETWORKS, BUSINESS SECTOR, BUSINESSES, CENTERS OF EXCELLENCE, CHEMISTRY, CIRCULATION OF KNOWLEDGE, CITIES, COLLEGES, COLOR TELEVISION, COMMODITIES, COMMUNICATION TECHNOLOGY, COMPETITIVENESS, COMPONENTS, COMPUTER DATA, COMPUTER GRAPHICS, COMPUTERIZATION, COMPUTERS, CONNECTORS, CONSUMER ELECTRONICS, CONSUMER GOODS, CONSUMER MARKETS, CPU, CURRICULUM, DATA PROCESSING, DATA STORAGE, DECISION MAKING, DEGREES, DIGITAL, DIGITAL COMMUNICATIONS, DISCIPLINES, E-GOVERNANCE, ECONOMIC DEVELOPMENT, ELECTRICITY, ELECTRONIC PUBLISHING, ELECTRONICS, ENERGY INFRASTRUCTURE, ENERGY SOURCES, ENGINEERING, EQUIPMENT, EXPENDITURES, FACULTIES, FINANCIAL INSTRUMENTS, FOREIGN DIRECT INVESTMENT, FOREIGN UNIVERSITIES, GLOBAL ECONOMY, GOVERNMENT POLICY, HARDWARE, HIGH TECHNOLOGY, HIGHER EDUCATION, HOUSING, HUMAN CAPITAL, IMAGE, IMAGE ANALYSIS, INDUSTRIAL BASE, INDUSTRIAL DEVELOPMENT, INDUSTRIAL ECONOMICS, INDUSTRIAL ECONOMIES, INDUSTRIAL POTENTIAL, INDUSTRIAL PRODUCTION, INDUSTRIAL TECHNOLOGIES, INDUSTRIAL TECHNOLOGY, INFORMATION GAP, INFORMATION STORAGE, INFORMATION TECHNOLOGY, INFRASTRUCTURE DEVELOPMENT, INNOVATION, INNOVATION POLICY, INNOVATIONS, INSTITUTION, INSTITUTIONAL CAPACITY, INSTITUTIONAL FRAMEWORK, INTEGRATED CIRCUITS, INTELLECTUAL CAPITAL, INTELLECTUAL PROPERTY, INTERMEDIARY ORGANIZATIONS, INTERNATIONAL COMPETITIVENESS, INTERNATIONALIZATION, INVENTION, JOINT VENTURES, KEY INDUSTRIES, KNOWLEDGE CREATION, KNOWLEDGE NETWORKS, KNOWLEDGE WORKERS, LEARNING, LIFE SCIENCES, LITERATURE, MAGNETIC TAPE, MANUFACTURING, MARKETING, MASS MARKET, MATERIAL, MICROBIOLOGY, MINISTRY OF EDUCATION, NANOTECHNOLOGY, NATIONAL INNOVATION SYSTEMS, NETWORKING, NETWORKS, NEW TECHNOLOGIES, NEW TECHNOLOGY, PAPERS, PERIPHERALS, PHYSICAL INFRASTRUCTURE, PHYSICAL LOCATION, PHYSICS, PRINTED CIRCUITS, PRIVATE SECTOR, PROCUREMENT, PRODUCT DESIGN, PRODUCT DEVELOPMENT, PRODUCTIVITY, PUBLIC SERVICES, PUBLIC UNIVERSITIES, PURCHASING POWER, PURCHASING POWER PARITY, R&D, RADIO, RESEARCH CENTERS, RESEARCH COLLABORATION, RESEARCH ENVIRONMENT, RESEARCH FINDINGS, RESEARCH GRANTS, RESEARCH INSTITUTE, RESEARCH INSTITUTES, RESEARCH INSTITUTIONS, RESEARCH LABORATORIES, RESEARCH PARTNERSHIPS, RESEARCH POTENTIAL, RESEARCH PROGRAMS, RESEARCH UNIVERSITIES, RESEARCHERS, RESULT, RESULTS, ROUTER, SAN, SCHOLARS, SCIENCE FOUNDATION, SCIENCE PARKS, SCIENTIFIC ADVANCES, SCIENTIFIC CULTURE, SCIENTIFIC FIELDS, SCIENTIFIC JOURNALS, SCIENTIFIC PAPERS, SCIENTISTS, SEMICONDUCTOR, SEMICONDUCTOR INDUSTRY, SEMICONDUCTORS, SILICON, SMALLER ONES, SOCIAL SCIENCES, SOCIOLOGY, SOFTWARE INDUSTRIES, SOUTH ASIAN, STORAGE DEVICES, TARGETS, TAX INCENTIVES, TEACHING, TECHNICAL SKILLS, TECHNOLOGICAL ADVANCE, TECHNOLOGICAL ADVANCES, TECHNOLOGICAL CAPABILITIES, TECHNOLOGICAL CAPABILITY, TECHNOLOGICAL CHANGE, TECHNOLOGICAL DEVELOPMENT, TECHNOLOGICAL INNOVATION, TECHNOLOGICAL POSSIBILITIES, TECHNOLOGY DEVELOPMENT, TECHNOLOGY GAP, TECHNOLOGY TRANSFER, TELECOM, TELECOMMUNICATIONS, TELECOMMUNICATIONS EQUIPMENT, TELECOMS, TELEVISION, TERTIARY EDUCATION, TERTIARY ENROLLMENTS, TERTIARY LEVEL, TERTIARY-LEVEL ENROLLMENT, TEXTILES, TRANSACTION, TRANSISTORS, TRANSMISSION, UNIVERSITIES, UNIVERSITY RESEARCH, UNIVERSITY STAFF, VIDEO, VISUAL DISPLAY, WEB, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2007/08/8065398/strengthening-chinas-technological-capability https://hdl.handle.net/10986/7268
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