R&D spending by Chinese companies jumps 34%

Chinese companies recorded fastest growth in research and development spending this year, according to a report by consultancy PwC's Strategy & released on Thursday.

Chinese companies recorded 34.4 percent jump in R&D expenditure to reach $60.1 billion in 2018, eclipsing the global average of 11.4 percent, said the 14th edition of the Global Innovation 1000 Study Report.

Alibaba remained the top R&D corporate spender in China for the third consecutive year, recording $3.6 billion, whereas Amazon outperformed peers as the world leader by investing $22.6 billion in R&D.

Chinese companies' R&D expenditure accounted for 7.8 percent of the total for the 1,000 companies, up from 6.4 percent last year. The number of Chinese companies chosen as "innovative powerhouses" rose from 125 to 145.

As China's economic drivers, internet, automobile and new technologies like artificial intelligence and big data will continue to be the hotspot for R&D spending, said Xu Huchu, managing director of PwC Strategy & in China.

Patrick Hui, PwC's consulting partner in Chinese mainland and Hong Kong, said that spending in fundamental researches is set to increase in China, such as the semiconductor sector, as the country strives to move up the value chain and pursue high-quality growth.

The study also revealed that the healthcare industry is on track to become the biggest R&D spending sector by 2020 on a global basis.