Tuesday, 02 January 2024 12:17 GMT

China Overtakes US In R&D, But Genesis Spark Still Lags


(MENAFN- Asia Times) It finally happened. According to the Organization for Economic Co-operation and Development, China invested US$1.03 trillion in research and development in 2024-surpassing the United States' $1.01 trillion for the first time in history.

After two decades of double-digit annual growth in R&D expenditure, the crossover was not a matter of if, but when. Now that the symbolic threshold has been crossed, the more important question is what it actually means-and the answer is more nuanced than most headlines suggest.

The raw numbers are striking but tell only part of the story. China's R&D spending has grown by more than 14% annually since 2004, and its R&D intensity has reached 2.7% of GDP, approaching the levels of advanced OECD economies.

Beijing has announced plans to grow its science budget by 7% each year for the next five years, with a 16.3% increase in central government spending on basic research in 2026 alone.

Meanwhile, China's universities have been handing out twice as many STEM degrees as their American counterparts, and in 2022 awarded more than 53,000 doctoral degrees in science and engineering compared with fewer than 45,000 in the US.

The outputs are equally dramatic. On the 2025 Nature Index, which tracks publications in leading science journals, nine of the world's top ten research institutions are Chinese-up from just one in 2016.

The Australian Strategic Policy Institute reports that China now leads in high-quality research in 66 of 74 strategically significant technologies. As Pfizer CEO Albert Bourla recently observed, research in China moves at“three times the speed, half the cost.”

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Asia Times

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