Core Insights - The total R&D expenditure in China for 2024 is projected to exceed 3.6 trillion yuan, marking an 8.9% increase from the previous year, indicating a stable growth trend in R&D investment [2] - China ranks second globally in R&D expenditure, following the United States, and has a higher growth rate than major economies [2] - The R&D expenditure intensity (R&D expenditure as a percentage of GDP) is 2.69%, up by 0.11 percentage points from the previous year, reflecting a faster increase than the average since the 14th Five-Year Plan [2] R&D Expenditure Breakdown - In 2024, R&D expenditures from enterprises, government research institutions, and higher education institutions are 28,211.6 billion yuan, 4,231.6 billion yuan, and 3,065.5 billion yuan respectively, with growth rates of 8.8%, 9.7%, and 11.3% [3] - Enterprises contribute over 75% of total R&D funding, with a contribution rate of 77.1% to the overall growth of R&D expenditure [3] - High-tech manufacturing and equipment manufacturing sectors show R&D expenditure growth rates of 10.2% and 10.5%, respectively, outpacing the overall growth rate [3] Basic Research Investment - Basic research funding reached 250.09 billion yuan, with a growth rate of 10.7%, while applied research and experimental development funding grew by 17.6% and 7.6% respectively [4] - The proportion of basic research funding in total R&D expenditure is 6.88%, the highest in history, with government research institutions and universities contributing significantly to this growth [4] Fiscal Support and Tax Incentives - National fiscal science and technology expenditure for 2024 is 12,629.2 billion yuan, a 5.3% increase from the previous year, focusing on basic research and scientific research facilities [5] - Tax incentives for R&D have led to a 16.7% increase in the number of enterprises benefiting from R&D expense deductions and a 25.5% increase in the amount of expenses claimed compared to 2021 [5] Regional Development and Innovation - R&D expenditures in eastern, central, western, and northeastern regions of China are 23,773.0 billion yuan, 6,582.1 billion yuan, 4,759.8 billion yuan, and 1,211.9 billion yuan respectively, all showing significant growth [7] - Key regions like Beijing, Shanghai, and Guangdong have R&D expenditures exceeding 5,000 billion yuan, highlighting their role as innovation hubs [7] - The Yangtze River Economic Belt and Yellow River Basin regions also show robust R&D expenditure growth, indicating effective regional collaboration in innovation [7]

R&D Funding Overview - In 2024, the total investment in research and development (R&D) reached 36,326.8 billion yuan, an increase of 2,969.7 billion yuan, representing a growth of 8.9% compared to the previous year [3] - The R&D investment intensity, measured as a percentage of GDP, was 2.69%, up by 0.11 percentage points from the previous year [3] - The per capita R&D funding, calculated based on full-time equivalent R&D personnel, was 480,000 yuan, an increase of 19,000 yuan from the previous year [3] R&D Funding by Activity Type - Basic research funding amounted to 2,500.9 billion yuan, growing by 10.7% year-on-year [3] - Applied research funding reached 4,305.5 billion yuan, with a growth rate of 17.6% [3] - Experimental development funding was 29,520.4 billion yuan, increasing by 7.6% [3] - The share of basic research funding in total R&D funding was 6.88%, up by 0.11 percentage points [3] R&D Funding by Entity - Enterprises accounted for 28,211.6 billion yuan in R&D funding, a growth of 8.8% [3] - Government research institutions contributed 4,231.6 billion yuan, increasing by 9.7% [3] - Higher education institutions provided 3,065.5 billion yuan, with an increase of 11.3% [3] - The proportions of R&D funding by entities were 77.7% for enterprises, 11.6% for government institutions, and 8.4% for higher education [3] R&D Funding by Industry - The high-tech manufacturing sector invested 7,668.9 billion yuan in R&D, marking a growth of 10.2% [4] - The R&D investment intensity in this sector was 3.35%, an increase of 0.24 percentage points [4] - Eight major industries in large-scale industrial enterprises invested over 100 billion yuan in R&D, accounting for 68.2% of total R&D funding in large-scale industrial enterprises [4] R&D Funding by Region - Six provinces and municipalities invested over 200 billion yuan in R&D: Guangdong (5,099.6 billion yuan), Jiangsu (4,597.5 billion yuan), Beijing (3,278.4 billion yuan), Zhejiang (2,901.4 billion yuan), Shandong (2,597.3 billion yuan), and Shanghai (2,343.7 billion yuan) [4] - Seven regions exceeded the national average R&D investment intensity, with Beijing at 6.58%, Shanghai at 4.35%, and Guangdong at 3.60% [4] Fiscal Science and Technology Expenditure - In 2024, national fiscal science and technology expenditure was 12,629.2 billion yuan, an increase of 633.3 billion yuan, representing a growth of 5.3% [5] - Central fiscal science and technology expenditure was 4,192.5 billion yuan, accounting for 33.2% of total national expenditure [5] - Local fiscal science and technology expenditure was 8,436.7 billion yuan, making up 66.8% of the total [5]

Core Viewpoint - China's total R&D expenditure has surpassed 3 trillion yuan, indicating a strong commitment to innovation and technology development, with a target of maintaining an annual growth rate of over 7% during the 14th Five-Year Plan period [2][4]. Group 1: R&D Expenditure Overview - In 2022, China's total R&D expenditure reached approximately 3.08 trillion yuan, marking a 10.11% increase from the previous year, and in 2023, it is projected to grow to about 3.34 trillion yuan, reflecting an 8.36% increase [2][4]. - The R&D expenditure intensity in 2022 was 2.54%, an increase of 0.11 percentage points from the previous year, achieving the target set in the 13th Five-Year Plan [4][6]. - By 2023, the R&D expenditure intensity is expected to rise to 2.65%, and further to 2.68% in 2024, continuing the trend of steady growth [4][6]. Group 2: Comparison with G7 Countries - In terms of R&D expenditure scale, China's R&D investment in 2022 was equivalent to 49.57% of that of the United States, maintaining its position as the second-largest globally [5][6]. - China's R&D intensity remains in the middle range among G7 countries, with 2022 figures showing it lagging behind the U.S., Japan, and Germany [6]. Group 3: Regional Disparities in R&D Investment - The gap in R&D expenditure between southern and northern regions of China has widened, with southern regions accounting for 67.21% of national R&D spending by 2023 [8][11]. - The central region's share of R&D expenditure has increased from 17.75% in 2020 to 18.20% in 2023, indicating a notable rise in its contribution [11][12]. Group 4: Leading Provinces in R&D Investment - Guangdong, Jiangsu, and Beijing continue to lead in R&D expenditure, with Guangdong and Jiangsu both surpassing 400 billion yuan in 2023 [13][14]. - The number of provinces exceeding 100 billion yuan in R&D expenditure has increased from 8 to 12 between 2020 and 2023, highlighting the rise of central provinces like Henan, Hunan, Anhui, and Fujian [13][14]. Group 5: Role of Enterprises in R&D - The proportion of R&D funding from enterprises has increased significantly, rising from 31.71% in 1995 to 79.02% in 2022, indicating a shift towards enterprise-led innovation [15][18]. - The execution of R&D funding has also shifted towards enterprises, with their share rising to 77.57% in 2022, while the roles of research institutions and universities have diminished [18][21]. Group 6: Government Support and Research Focus - Government funding for research institutions has decreased, while support for higher education institutions has increased, reflecting a strategic shift in funding priorities [20][21]. - Enterprises are primarily focused on experimental development, with a significant portion of their R&D funding directed towards internal activities, while universities are enhancing their role in basic research [23][25]. Group 7: Future Directions - The emphasis for China's R&D funding should shift from merely increasing scale to optimizing internal structures, promoting regional cooperation, and enhancing the role of universities and research institutions in fundamental research [27].