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Chinese companies lead global R&D spending growth: PwC

Xinhua | Updated: 2019-01-25 11:11
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A staff member of an enterprise debugs high-tech helmets for firefighting and rescue in Xingtai, Hebei province. [Photo/Xinhua]

SHANGHAI - Chinese companies' innovation spending increased 34.4 percent over 2017, or nearly three times the overall growth rate among 1,000 global innovative companies listed by consulting firm PricewaterhouseCoopers (PwC), according to the latest report.

The report by PwC's Strategy& showed that in 2017, total research and development (R&D) spending by the Global Innovation 1000, the 1,000 largest global public companies by R&D spending, reached $781.8 billion, up by 11.4 percent.

A total of 145 Chinese companies are on the list in 2018, up by 20 year-on-year. The companies' R&D spending reached $60.08 billion.

Among "high-leverage innovators," defined by the report as companies that outperform the industry financially while spending less on R&D as a percentage of sales, Chinese companies make up 17 percent of the group. That presents a big contrast of only 3 percent in 2007, the report said.

The report also noted that China and Europe are the only regions that saw high-leverage innovators increase in recent years.

One reason for China's rise as an R&D leader is simply the vibrancy of the country's economy in the 21st century, said Patrick Hui, a partner with PwC China.

Companies headquartered in China lead other regions by similar margins on indicators such as their executive team's involvement in innovation strategy and company-wide cultural support for innovation programs, Hui said.

According to the National Bureau of Statistics, in 2018, China's production in high-tech industries, strategic emerging industries and the equipment manufacturing sector expanded by 11.7 percent, 8.9 percent and 8.1 percent, respectively.

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