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China sees largest global growth in R&D spending: PwC

  • Chinese companies spent 34 per cent more on R&D to reach US$60 billion in the 12 months to June 2018

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China’s push to become a global leader in hi-tech sectors under the Made in China 2025 plan has seen its R&D spending surge. Photo: Shutterstock
Louise Moon

China’s spending on research and development (R&D) grew the most globally in the 12 months to June 2018, according to a PwC report on Friday.

As China eases away from its dependence on heavy industries and pushes to be a global leader in hi-tech sectors under the Made in China 2025 plan, their spending on R&D from electronics to science is growing.

Though US companies currently spend the largest amount of money on R&D, the figure invested by their Chinese counterparts grew the most worldwide in the year through June 30.

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Chinese companies spent 34 per cent more on R&D to reach US$60 billion, according to the 14th annual PwC Strategy & Global Innovation 1000 study. The country’s overall investment made up 8 per cent of the global total, up from 6 per cent last year.

Alibaba was the top R&D spender in China for three years in a row. Photo: Reuters
Alibaba was the top R&D spender in China for three years in a row. Photo: Reuters
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The report analysed the world’s 1,000 largest publicly listed companies that spend the most on R&D, and account for 40 per cent of the global spend.

“As China forges ahead with its innovation-driven growth strategy, innovation will become the top driving force for development,” said Patrick Hui, consulting partner at PwC mainland China and Hong Kong. “Twenty more Chinese companies entered the Global Innovation 1000 list compared with last year,” making up a total of 145.

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