Study Times published an article discussing the need for China to develop an effective strategy to increase national competitiveness through innovation. In 2007, the U.S. spent a great deal of money on research and development. The total was $368 billion, which is 2.68% of its GDP, or $1,265.70 per person. In comparison, China currently spends about $48.7 billion on R&D, which is 1.46% of its GDP, or $37 per person. At the industry level, the transition from scientific and technological success to manufacturing and production has been very slow. Only 25% of the technological breakthroughs have made this transition, which is way behind the 80% rate in developed countries. Further, less than 5% of these successes have been developed to the point of full production. The article recommended upgrading industries in the following areas: new energies, information, biology, material, medicine, environmental protection, oceanography, and space, as well as other new emerging industries.
Source: Study Times, March 5, 2012