International and innovation

Many times we tell ourselves that the key to US competitiveness is innovation. Visiting China makes one realize that we aren’t the only society focused on innovation.

For example, at a session held at Tsinghua Science Park we learned that China has 42.8 million people involved in science and technology with R&D expenditures approaching $200 billion RMB; 2.5% of GNP is invested in science and technology. As they explained their science and technology approach we learned that their goal is to create an innovative nation and increase proprietary innovations, leapfrogging developments in key fields. To do that they are investing in both basic and applied research and facilitating business-university partnerships.

In China there massive programs for high technology research and basic research. In addition to research and development they are creating the capacity for science and technology commercialization, including the promotion of small and medium sized businesses. In addition, multinational corporations had over 750 R&D units in China in 2005, 90% of which are in either Beijing or Shanghai.