On February 13, Finance (jingrongjie) magazine published an article on the need to accelerate China’s “innovation driven” strategic transformation. The article stated that China’s economic growth can no longer be sustained by going along with the use of cheap labor and the damage to the environment and resources. Only innovation can accelerate the transformation and the upgrading of China’s economy.
The article stated that China faces several challenges.
China’s innovation and competitiveness remain low. According to the 2013 National Innovation Index Report that the Chinese Academy of Science and Technology for Development issued, China holds the position of No.19 in the ranking of innovative countries, while the U.S., Japan, and South Korea are Nos. 1, 2 and 4, respectively. The intensity of China’s innovation is also low. The intensity of U.S. innovation is 3.35 percent, while, in 2013 China’s innovation intensity was 0.88 percent. The “window” for China’s technological development to "catch-up" is closing. When compared to the United States and other developed countries, even China’s strategic emerging industries are showing gaps as wide as in traditional industries. Further, China has experienced a severe brain drain; it ranks No. 1 in brain drain in the world. After completing their studies overseas, about 87 percent of those who major in science and engineering fields do not return to China X.
Source: Finance (Jingrongjie), February 13, 2015