A new report by the Office of Economic Co-operation and Development has criticised China’s attempts to become a technological innovator, claiming that the rigid control of the government over project financing limits the R&D ecosystem.

The report noted that China has made remarkable achievements in developing an R&D capability since the 1970s which is now second only to the US in number of researchers. R&D spending in the country has increased at a compound rate of 19% per year since 1995.

However, the OECD was disappointed by the way in which those resources are being directed. The Chinese government has focused its attention on “high-technology” and neglected a need for more basic research into services, energy and environmental technology.

Despite the increase in research financing, the number of institutes at The Chinese Academy of Sciences has recently shrunk from 120 to 89. What the Chinese state believes to be rationalisation and focus, the OECD believes to be short-sightedness and negligence.

“A high-technology myopia pervades current policy objectives and thinking on innovation,” the report reads.

OECD press release
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