Internationalization of China’s R&D: Characteristics and Characteristics and Questions Questions by Professor Zhou Yuan, Deputy Director- Professor Zhou Yuan, Deputy Director- General General National Research Center for S&T for National Research Center for S&T for Development Development Ministry of Science and Technology, Ministry of Science and Technology, China China Presented at the international workshop on Presented at the international workshop on Internationalization of R&D Helsinki,Finland 17-18 Jun, 2004
Transcript
Internationalization of China’s R&D: Characteristics and QuestionsCharacteristics and Questions
by
Professor Zhou Yuan, Deputy Director-GeneralProfessor Zhou Yuan, Deputy Director-GeneralNational Research Center for S&T for National Research Center for S&T for
DevelopmentDevelopmentMinistry of Science and Technology,Ministry of Science and Technology, China China
Presented at the international workshop onPresented at the international workshop on
Internationalization of R&D
Helsinki,Finland 17-18 Jun, 2004
• BackgroundBackground
• CharacteristicsCharacteristics
• QuestionsQuestions
• ConclusionConclusion
ContentsContents
I. Background
1.1. China’s comparative advantage in R&DChina’s comparative advantage in R&D
(1). Cheaper S&T human resource in good (1). Cheaper S&T human resource in good
qualityquality
(2). Grand domestic market(2). Grand domestic market
I. Background
2. Incentives of developed countries and MNC
to promote internationalization of China’s
R&D
(1). Making full use of Chinese S&T talents
(2). Occupying the market
II. II. CharacteristicsCharacteristics
1. Chinese S&T human resource is developed on a 1. Chinese S&T human resource is developed on a
large scale in internationalizationlarge scale in internationalizationStudents studying abroad
Source: MOST(2002), China Science and Technology Indicators 2002
1.1. Chinese S&T human resource is developed on Chinese S&T human resource is developed on
a large scale in internationalizationa large scale in internationalization MNC’s R&D institutes in China by regionMNC’s R&D institutes in China by region
II.II. CharacteristicsCharacteristics
MNC' s R&D I nst i tutes i n Chi na by l ocat i on
Bei j i ng60%
Shanghai18%
Shenzhen6%
otherci t i es
16%
Source: MOST(2002), China Science and Technology Indicators 2002
II. II. CharacteristicsCharacteristics
2. China’s big market attracts R&D input from developed 2. China’s big market attracts R&D input from developed
countries and MNCcountries and MNCOverseas share of R&D fundsOverseas share of R&D funds
0
2
4
6
8
10
12
14
16
18
20
Percentage of GERD fi nanced abroad(2000)
Source:OECD, MSTI, 2003-2, MOST(2002), China Science and Technology Indicators 2002
II. II. CharacteristicsCharacteristics
2.China’s big market attracts R&D input from devel2.China’s big market attracts R&D input from devel
oped countries and MNCoped countries and MNCOverseas share of R&D funds in manufacturingOverseas share of R&D funds in manufacturing
01020304050607080
Share of R&D of affi l i ates under forei gn control i n total manufacturi ng R&D
Source:OECD, STI Scoreboard, 2003, OST(2002), China Science and Technology Indicators 2002
II. II. CharacteristicsCharacteristics
2. China’s big market attracts R&D input from
developed countries and MNCDistribution of MNC’s R&D institutes by technology fields
MNC' s R&D I nst i tutes i n Chi na by technol ogyfi el ds
I T70%
fi nechemi stry
11%
bi ol ogi calpharmacy
9%
automobi l e6%
other4%
Source: MOST(2002), China Science and Technology Indicators 2002
II. II. CharacteristicsCharacteristics
2. China’s big market attracts R&D input from
developed countries and MNCForeign patents application
Hi gh technol ogy i nventi on appl i cati ons by Chi nese andforei gners
0
20
40
60
80
100
hi ghtechnol ogy
avi ati on &space
computer &offi ce
automati on
el ectroni cs &communi cati on
pharmacy
Chi nese forei gn
Source: MOST(2002), China Science and Technology Indicators 2002
II. II. CharacteristicsCharacteristics
2. China’s big market attracts R&D input from
developed countries and MNCSales value of high-tech new products
Hi gh-technol ogy new products sal erevenue(1995-2001)
0
500
1000
1500
2000
2500
3000
3500
1995 1996 1997 1998 1999 2000 2001
Total Hi gh-technol ogy i ndustri esState owned enterpri sesJoi nt ventures
Source: MOST(2002), China Science and Technology Indicators 2002
III. III. QuestionsQuestions
Question 1: Does China benefit from
internationalization of R&D?
Yes: 1. Learning advanced R&D experience
from other countries
2.Nurturing domestic talents in
international cooperation
III. III. QuestionsQuestions
Question 2: Does R&D internationalization
enhance host country’s S&T competitiveness?
No: 1. In theory, developed countries and MNC
input R&D resource into China in order to pursue
maximized profit for themselves, not to enhance
host country’s competitiveness.
III. III. QuestionsQuestions
Question 2: Does R&D internationalization enhance host country’s S&T competitiveness?
No: 2. In practice (according to a survey of foreign enterprises in Beijing, Shanghai, Suzhou and Dongguan)
----all the equipments of 32.4% foreign enterprises are introduced from abroad----the majority of equipments of 55% foreign enterprises are introduced from abroad----the majority of equipments of 13.2% enterprises are made in China
