Transcript China National Systems of Innovation

China National Systems of Innovation
Course: Technology and innovation management
By Dominique JOLLY 2008/2009
LAM HEI MAN Maggie
ROZAND Emilie
ZEIDAN Réda
General Informations

Establishment: People’s Republic of China (1st october 1949)


Capital: Beijing
Government: Single-party state, Socialist Republic
President: HU JINTAO
Area: 9,640,821 Km²
Population (2007): 1,321,851,888
Density (2007): 140/ Km²
GDP (2007): 11,3%

4th world economic power

DHI (2005): 0,777 ( 81st)





PRC is the world’s second largest
Exporter and third largest importer

History « Opening as a foundation of chinese strategy »









-
1978 Deng Xiao Ping introduces « Open Door Policy » (success in India and Japan)
introduction of market-based economic reforms
1986 Opening of negotiations between China and WTO
2001 China’s accession to the WTO
Since 1995: 600 billion US$ FDI entered in China (10 time more than in India)
2006: 63 billion US$ FDI enter in China
Trades between 1995 and 2001 moved up from 281 to 550 billion US$
2006 trades rised up to 1700 billion US$
In 20 years China went from 1% to 6,5% of the total amount of world exchanges
1980’s:
Establishment of Economic Zones to attract FDI
Restructuring of state-owned companies
Joint Ventures are the dominant partern for foreign business in China ( Alcatel,
Schneider Electric…)
Growth rate at two digits (1978: US$ 45 billion, 2002: 1 trillion US$)
China GPD from 1952 TO 2005
R&D Expenditures


2006: China becomes the 2nd world investor in R&D with 136 Billion
US$ (130 for Japon, 330 for USA and 230 for EU).
China’s spending on R&D remains heavily focused on experimental
development; only 5.2% of all R&D in 2006 was aimed at basic
research, compared to 10-20% in OECD countries .
.
R&D Expenditures
By sector of performance
10%
18
16
14
12
10
8
6
4
2
0
1%
22%
Research
institutes
Enterprises
Universities
National Research
centers
Enterprises
By source of funds
1% 6%
2003
2004
Others
67%
Universities
2005
27%
Government
Enterprises
Abroad
Others
66%
GERD* by source of funds and sector of performance (2004) / GERD: Gross Expenditure on R&D
R&D expenditure in % of GDP in 2003
Source: OECD, Main Science & Technology Indicators, Volume 2002/2,Hong Kong Digest of Statistic,March 2003
GNP Ratio Evolving
R&D expenditures / GDP
GNP Ratio Evolving from 1995 / 2005
Sweden
Japan
United
Denmark
Germany
Austria
Canada
Belgium
Netherlands
Norway
China
Spain
Hungary
India
Turkey
Poland
4,50
4,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00
Mexico
1.6
1.34
1.4
1.2
1.23 1.31 1.23
1
1 1.09
0.83
0.8
0.69
0.6
0.6 0.6 0.64
0.4
0.2
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Ireland

The R&D intensity – the ratio of GERD to gross domestic product (GDP) –
of China’s economy has increased spectacularly. It reached 1.43% of GDP
in 2006, up from 0.6% in 1995.
The main goal of China is to reach 2% in 2010 and 2.5% in 2020.
New

Technology in China/ R&D centers








In 2006, high R&D intensity remained heavily concentrated in some regions,
especially in Beijing, Shanghai, Shaanxi, and Sichuan.
Most dynamic innovating center are located along the East coast meanwhile
the presence of R&D in the center and the West are rare
The inland provinces such as Yunnan and Guizhou where the GDP/ per
capita are below average, the spending on R&D respectively correspond to
0,7% and 0,5% of the total nationwide.
Beijing’s GDP/ per capita is above 2500 US$, their part are > 16%
High-tech clusters: Zhongguancun (Beijing), Zhangjiang (Shanghai), Suzhou
High-tech park, …
Foreign companies develop R&D centers in China: Astra Zeneca, Roche,
Servier, Nokia, Intel, IBM, Alcatel, Delphi, Danone, …
China is the moste attractive country for resarch centers (700 in 2005)
The 863 and 973 programs, support by chinese government
National Key Technologies R&D Program


Presentation
 the first national S&T program in China
 It aims to address major S&T issues in national economic construction and social
development
 Initiated in 1982 and implemented through 4 Five-year Plans, the Program has made
remarkable contributions to the technical renovation and upgrading of traditional
industries and the formation of new industries
Major tasks
 to promote in-depth agro-product processing by developing a number of key
technologies and products for sustainable agricultural development

With the manufacturing industry as a gateway to new innovations, redouble efforts to
develop common key technologies for basic and pillar industries

With informatization process in the financial sector as a priority, accelerate the
development of IT and other high technologies

With environmental protection and rational utilization of resources as priorities, develop
key technologies in urban environmental pollution control

With the modernization of traditional Chinese medicine (TCM) as a gateway to
innovation, develop key technologies in the TCM industry to secure its world-leading
position

With promotion of the social cause as a goal, intensify research on major public welfare
technologies and develop advanced and applicable technologies and products to further
enhance the living standards of the Chinese people
National High-Tech R&D program (863)

Presentation




Orientation & Objectives




Developed in 1986 by four chinese scientists: WANG Dahen, WANG
Ganchang, YANG Jiachi and CHEN Fangyun
Aproved by DENG Xiaoping personally
Implemented during three successive Five-year Plans
To boost innovation capacity in the High-Tech sectors
to strive to achieve breakthroughs in key technical fields that concern the
national economic lifeline and national security
to achieve “leap-frog” development in key high-tech fields in which China
enjoys relative advantages
Major tasks




Develop key technologies for the construction of China’s information
infrastructure
Develop key biological, agricultural and pharmaceutical technologies to
improve the welfare of the Chinese people
Master key new materials and advanced manufacturing technologies to
boost industrial competitiveness
Achieve breakthroughs in key technologies for environmental protection,
resources and energy development to serve the sustainable development of
our society
Scientific potential (1)






In China, the number of researchers raisefd by 77% between 1995 and
2004. With 926 000 researchers, the country is now ranked second in the
world, just behind the USA ( more than 1,3 million).
The worlwide part taken by China in scientific publication has raised by 88%
in 10 years between 1998 and 2007 ( from 2.5% to 4,5%)
1985-2004 the number of scientific and technological personnel had
increased from 8.70% to 39%
Since 25 years about 400 000 to 500 000 chinese have gone studying,
working or living China in the past 25 years. 150 000 come back to china
(Government )
2004: 55.75 million scientific and technological personnel in state-owned
companies and institutions, in which over half are scholars returned after
their studies abroad
53 hi-tech development zones, more than 30 000 hi-tech enterprises
Scientific potential (2)
Science and technology






1964: 1st nuclear test / China is a nuclear nation
1970: of Dong Fang Hong I, the first Chinese satellite
2003: Human being into space: Shenzhou 5
2005: The country plans to build a Chinese Space Station in the near future
and achieve a lunar landing in the next decade.
China is als actively developing its software, semiconductor and energy
industries, including renewable energies such as hydro, wind and solar
power.
China has been pioneering the deployment of pebble bed nuclear
reactors.

Wind turbines in Xinjiang
wind farm.
(Picture).
The Dabancheng project is Asia's largest
Universities Play a Key role in innovation






Universities in China are at the origin of 1 of 5 patents
They are representing 1/10 of the scientific and technologic companies
In 2006, chinese universities were accomodating around 18 millions
students ( more than 200 000 doctorants and almost 900 000 masters)
Corresponding to 1.8% of the total population
More than 1000 Universities in China
Number of students for 100 000/ inhabitants: 1 494 ( USA 5776; France
3600)
Renmin University of China
Shandong University, China
Stake-holders
Public Research
Organizations: China
Academy of Science
+ 155 National
key laboratories
Private techno creators:
2,8000 Large and medium
sized enterprises:
R&D / Turnover = 1.69% only
10 National Research
Centers + 56 Engineering
Research Centers
CIS
National champion
firms: Huawei, Haire,
Lenovo, Haison, Bell, ZTE
-Concentrated on information,
electricity and communication
More than 1050
Universities
+ 53 National Hi-Tech
Industrial Parks
Patent activity: Only 0.03% enterprises have core technology patents and mainly in the domains of
Chinese Medicine, Soft drink, Food, Chinese character input system
Chinese innovation’s policy
-
-
-




Creation of technologic parks (scientific incubators, technologic zones…)
83 in China
58 universitary scientific parks
Global plan elaborated from Beijing
Support from the government to promissing companies
Direct financing
Credit on taxes
Opening over public markets
Decisions at the national level
PME receive support in nature
Allowing access in import export
Support to the creation of industrial clusters
Creation of innovation centers
The part taken by China in the world total exportations between the early 1990’s and
2005, of high technology goods has moved up from 5% to 30%.
Important transfers of knowledge and technology as part of lucrative contracts of
foreign investments.
China 1st exportator of TIC goods (Radio, TV…).
Historical inventions : Compass, gunpowder, papermaking, and printing, Pythagorean
Thearem.
Traditional Chinese Medicine: Herbal Medicine, acupuncture, and massage.
Technology and knowledge-intensive industries
Share of total gross value added, average 2000-02
Patent activity
Some lecture dates in 2007 (1)

Challenge Bibendum 2007 (14-17 November 2007, Shanghai) is a yearly scientific and technical event, kown as the
premier clean and safe vehicle event in the world, where industry, policymakers, researchers and media can review the
latest technologies, debate policies and share their visions.
Bad integration of imported innovation

August 21 – September 3, 2007, Royal Flemish Academy of Belgium for Science and the Arts, Palace of
Academies, Rue Ducal 1, Brussels, Belgium The ASEM Aquaculture Platform is a multi-stakeholder platform for
dialogue, networking and continued coordination concerning sustainable aquaculture between EU and Asia
Some lecture dates in 2007 (2)

June 27-28, 2007, Italian National Institute of Health (ISS), Viale Regina
Elena 299, Rome, Italy SINO-EUROPEAN CONFERENCE ON
TRADITIONAL CHINESE MEDICINE (TCM): International Cooperation and
Perspective in Science and Technology

April 25-27, 2007, CIMNE, Barcelona, Spain Modelling, Simulation,
Experimentation and Design in Aerospace Engineering To identify and
implement future collaboration between Europe and China for the solution
of multidisciplinary design problems in aeronautics
Conclusion Strength




The Chinese government continues to place heavy emphasis on research
and development by creating greater public awareness of innovation, and
reforming financial and tax systems to promote growth in cutting-edge
industries.
President Hu Jintao in January 2006 called for China to make the transition
from a manufacturing-based economy to an innovation-based one, and this
year's National People's Congress has approved large increases in
research funding.
Chinese innovations are emerging and it’s a key factor of success for the
country and for the others technological actors in the world.
Like its economic development, China boosts technology and science very
fast, thanks to huge financing and high-skilled workers.
Conclusion: Weakness









The question/issue of sustainable growth and human development
Getting public policy more accessible to boost company’s
investment
Chinese Trade exportations are mainly focused on manufacturing
product
Hierarchical and bureaucratic system could involve weakness in the
Chinese economic model (soviet heritage?)
Leading role of universities in terms of innovation (Snall number)
Lack of experimented labor susceptible to develop technologies and
patents.
Lack of coordination between innovation key centers (such as
PEKIN, Shanghai) in terms of state financing.
Relatively tight control from the top to bottom
Geographical area (disparity..)
Sources













http://www.observateurocde.org/news/fullstory.php/aid/1955/Innovation_chinoise___________.html
http://www.observateurocde.org/news/fullstory.php/aid/2054/Chine_et_Inde_:_le_sens_de_l_92innovation_et_de_l
a_croissance.html
http://www.observateurocde.org/news/fullstory.php/aid/1812/L_92investissement_en_Chine_sous_surveillance.ht
ml
La R&D de la Chine. Colloque FutuRIS, 21 juin 2007. GUINOT François
Frédérique SACHWALD La Chine, puissance technologique émergente IFRI
http://www.club-innovation.info/index.php?id=2461
http://www.innovationlejournal.fr/spip.php?article1031&var_recherche=ocde
Case of student GMEB 2006/2007
http://www.jakouiller.com/2006/12/04/la-chine-depasse-le-japon-en-depenses-de-recherche-et-developpement/
http://www.ur105.ird.fr/article.php3?id_article=51
Wikipedia Chine
http://www.generation-nt.com/ocde-chine-japon-usa-recherche-developpement-ue-etude-actualite19776.html
Unesco