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Chinese firms invest more in R&D

(Xinhua)
Updated: 2006-11-27 09:41

Chinese large and medium-sized industrial enterprises invested 125 billion yuan (15.6 billion U.S. dollars) in research and development in 2005, an increase of 31 percent year on year, according to sources with the National Bureau of Statistics (NBS).

Ma Jingkui, a senior NBS official, told a press conference held in Beijing Saturday that R&D funds represented 0.76 percent of prime operating revenue in 2005, compared with 0.71 percent in 2004.

"Large and medium-sized industrial enterprises are starting to play a bigger role in innovation as government policies in support of corporate innovation begin to take effect", said Ma.

Statistics show large and medium-sized firms received 4.54 billion yuan of R&D funding from the government, a year-on-year increase of 28.6 percent.

But investment in research in China still has a long way to go. Chinese R&D investments represent 1.34 percent of GDP, compared with two percent in developed countries.

Ma pointed out that less than one fourth of large and medium-sized enterprises carry out research and development activities and less than 10 percent own patents.

Statistics show firms in dynamic, outward-looking eastern China provided over 75 percent of the total research and development investment in 2005.