Tech R&D spend­ing up by 10.6 per­cent in 2016

China Daily European Weekly - - Business -

Ex­pen­di­ture ac­counted for 2.11 per­cent of last year’s to­tal GDP

ex­ceeded the av­er­age level of 2.08 per­cent in the Euro­pean Union, while the ra­tio for Or­ga­ni­za­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment coun­tries was 2.40 per­cent, said the bu­reau.

R&D ex­pen­di­ture in­cludes la­bor costs, raw ma­te­rial cost and ex­penses for fixed-as­set construction and man­age­ment, the NBS said.

Pan Jiancheng, deputy head of the bu­reau’s eco­nomic mon­i­tor­ing cen­ter, says the in­creas­ing pro­por­tion of R&D ex­pen­di­ture to GDP in­di­cates that the driv­ing force of eco­nomic growth is trans­form­ing to in­no­va­tion fo­cus from the tra­di­tional fac­tors — ex­ports and in­vest­ment.

Ac­cord­ing to a na­tional plan for tech­nol­ogy de­vel­op­ment, by 2020 R&D ex­pen­di­ture is tar­geted to reach 2.5 per­cent of to­tal GDP.

The govern­ment will fur­ther boost fis­cal in­vest­ment in tech­nol­ogy in the fu­ture to lead more re­sources to in­no­va­tion ar­eas and will en­cour­age com­pa­nies to in­vest more in re­search, says Guan Xiao­jing, a se­nior econ­o­mist with the NBS.

Ning Jizhe, head of the bu­reau, said on Oct 10 at a news con­fer­ence that in­vest­ment in man­u­fac­tur­ing tech­nol­ogy up­grad­ing was faster than over­all in­vest­ment growth dur­ing the past year, along with the rapid de­vel­op­ment of high-tech and strate­gic emerg­ing in­dus­tries.

New driv­ing forces, in­clud­ing new in­dus­tries and busi­ness mod­els, con­trib­uted 14.8 per­cent of the coun­try’s to­tal GDP in 2015. “The ra­tio was ex­pected to be higher in 2016,” said Ning.

In July last year, the sta­tis­ti­cal re­form that adds R&D ex­pen­di­ture to the to­tal GDP took ef­fect.

This re­form is based on re­quire­ments by the United Na­tions Sys­tem of Na­tional Ac­counts, which is the in­ter­na­tional stan­dard for how to com­pile mea­sures of eco­nomic ac­tiv­ity, ac­cord­ing to Pan.

“More sta­tis­ti­cal re­forms will be pushed for­ward in the fu­ture to bet­ter join the in­ter­na­tional sta­tis­ti­cal sys­tem and re­flect the coun­try’s real eco­nomic sit­u­a­tion,” says Pan.

YIN LIQIN /CHINA NEWS SER­VICE

Work­ers as­sem­ble a home-made re­gional jet­liner ARJ21 in Shang­hai.

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