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China to invest in R&D in the United States

The Organization for Economic Cooperation and Development, an international agency which supports programs designed to facilitate trade and development published a report Monday estimating that this year China will surpass Japan and will become the world`s second largest investor in research and development after the United States. Dirk Pilat, head of the OECD`s science and technology division said: "The rapid rise of China in both money spent and researchers employed is stunning." The organization says that China is expected to spend more than $136 billion on research and development this year, passing China`s "mere" $130 billion.

China`s economy, which has been growing at more that 10% per year in recent years, is powering the immense growth in investment in research an development. Chinese companies are investing a great deal of money in an attempt to develop new profitable technologies in various spheres ranging from telecommunications to biotechnology. The Chinese government is also taking part in funding research, in an attempt to lower China`s dependence on foreign technology, which is seen by the communist government as a strategic weakness.

The OECD says that China`s investment in research and development has doubled its relative percentage from the country`s gross national product (GNP) from 0.6% in 1995 to 1.2% in 2004, and is growing faster than China`s staggering economy. The OECD includes the United States, Japan and most of the countries in Europe. China is not a member. A spokesperson for the OECD said: "To keep up, OECD countries need to make their research and innovation systems more efficient and find new ways to stimulate innovation in today`s increasingly competitive global economy."