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China Pours Funds to Forge Innovation Powerhouse

China Pours Funds to Forge Innovation Powerhouse

Chinese are putting its best foot forward to change its image from being a manufacturing powerhouse to a hub of innovation through the coming five years, states the most recent Lux Research Report. This transformation heralds enhancement of the speed at which the transition from manufacturing to innovation happens. And the 30-year-old history of funding on research and development initiatives shows no signs of slowing down either.

The public investments made by China towards high-tech scientific research based initiatives have been duly implemented through nationwide programs. These investments have been ingrained into a complex, evolving and geographically diverse institutional landscape that makes up for almost 70% of the R&D funding which touched the $91billion mark in 2009.

The R&D funding ecosystem of China reveals the connections between a corporate buy-in, public research investment and the sources of Chinese innovation that has a major role to play in driving the economic growth of the nation in future. This was mentioned by Zhun Ma, analyst for Lux Research and the primary author of the research report. The current sweep in the innovation agenda has been fuelled by the robustness of the existing manufacturing base the country boasts of, the magnification of domestic markets and the appreciation of the future societal needs of the country.

The report cites suitable examples – stating the immense support provided by the government in the healthcare and biotech sectors, the refinement of focus towards renewable energy and providing support to its IP rights system for attaining global standards. The spending goes into fundamental R&D towards the 973 programs of life sciences towers over all other areas. The National Science and Technology Program has decided to pump in CNY 27 billion for the medicine industry, inclusive of active pharmaceutical ingredients (APIs) and that of traditional Chinese medicines as well.

When it comes to renewable energy, CNY 4.9 billion would be pumped in for EV related R&D application and through the funding for several pilot lines catering to future photovoltaic. CNY 1.05 billion has been pumped for connection of electric vehicles and renewable energy to large scale grids. Hence, pivotal opportunities of local technology are being strongly supported.

And, when it comes to the realms of intellectual property, China is working towards dispersing its IP base through medium enterprises and start-ups, rather than concentrating on heavyweights alone. According to Zhun Ma, as Chinese originated IP assets accumulate critical mass amidst foreign nations, the leaders would be compelled to provide enhanced protection towards foreign IP in China for ensuring protection of Chinese rights overseas. Although changes aren’t expected to be prompt, the timeline related to the protection of IP quality would be measured not in decades but years.

Note: The preceding is a summary of an article found though our research, and is provided here with editorial comment for members only. Please see the complete article at the following link – http://www.eetimes.com

The New Asia Innovation Team

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