From Manufacturing to Innovation: How China Transforms into a Global R&D Center
New research from the Information Technology and Innovation Foundation shows that Chinese companies are rapidly advancing in innovation, in many cases at an extremely fast pace – and the scale of their efforts is massive. Progress in Advanced Industries By 2020, China led global production in 7 out of 10 advanced industries, while the United States led only 3: Industry Global Production (Billions) Leading Producer Leader’s Share Computers and Electronics $1,317 China 26.8% Chemicals $1,146 China 29.1% Machinery and Equipment $1,135 China 32.0% Motor Vehicles $1,093 China 24.3% Basic Metals $976 China 45.6% Investment in Research and Development China’s R&D spending grew from $136 billion in 2007 to $781 billion in 2023, nearly sixfold growth, placing it close to the United States which spent $823 billion. Technological Transformation Chinese companies are transitioning from mere copying to real innovation in areas: Challenges and Risks If China succeeds in becoming a leader in innovation, this poses a major challenge for Western countries because China will be able to combine quality, innovation, and price.