2021-11-30-普华永道-China_Economic_Quarterly_Q3_2021Find_out_more_about_hot_topic_analysis_13页_1mb

Q3 2021 China Economic Quarterly: The Progress of China's Innovative Economy

1. Global Ranking and National Strategy

• China’s global innovation ranking improved to 12th in the 2021 Global Innovation Index (GII).
• Innovation remains central to China’s modernization, as outlined in the 14th Five-Year Plan (2021–2025).

2. Economic and Industrial Development

• China’s GDP has grown significantly, accounting for over 17% of the global economy by 2020.
• The economy shifted from agriculture to services, with the tertiary industry now contributing 54.5% to GDP.
• China is the world’s largest manufacturing base and a leading producer of industrial goods.

3. Science, Technology, and R&D Investment

• R&D expenditure reached ¥2.44 trillion in 2020, up by 10.2% year-on-year.
• The R&D intensity (relative to GDP) was 2.4%, approaching the OECD average.
• Enterprises contributed 76.6% of R&D expenditure, with strong focus in sectors like electronic equipment, aerospace, and pharmaceuticals.
• Patent authorizations and trademark ownership per enterprise reached record levels.

4. Challenges and Opportunities

• Basic science progress lags, and technology transformation into commercial applications remains a challenge.
• Talent development and incentive mechanisms need further improvement to sustain innovation-driven growth.
• Geographic variations in R&D intensity (e.g., Beijing and Shanghai lead) highlight regional disparities.

5. Future Outlook

• China aims to become a global leader in science and innovation, solidifying its role as a major R&D hub.
• The innovation ecosystem continues to evolve, supporting high-quality economic growth.