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Published on October 12, 2007

Author: Misree

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China’s High-Tech Ambitions – Standards, High-Tech Policies and Self-Innovation :  China’s High-Tech Ambitions – Standards, High-Tech Policies and Self-Innovation ”China’s Innovation and Entrepreneurship Ambitions – Issues for European Business and Policy Strategies”, Bruxelles May 3, 2007 Magnus Breidne, Counsellor Science and Technology Embassy of Sweden Science Office (ITPS), Beijing Outline:  Outline China – the challenges Present day Chinese Innovation System The quest for the ’high end’ Protectionsim (techno nationalism) or Innovativeness Conclusions Slide4:  Challenges for China’s continued development fight poverty prevent water shortage harness energy consumption save the environment avoid epidemics (SARS/AIDS/...) stabilise the financial system stop corruption The key to addressing China’s challenges and securing future prosperity and well-being? :  The key to addressing China’s challenges and securing future prosperity and well-being? Science, technology and innovation High priority on strengthening China’s knowledge base through domestic and foreign investments, science, technology and innovation: Investments in R&D and education Policies for attracting foreign investment and technology Go global China’s innovation system:  China’s innovation system Rapidly growing knowledge inputs… R&D investments from 0.6 % in 1996 to 1.3 % 2004 Human capital Number of students and Ph.D. increasing rapidly, part. in science and engineering ’Brain gain’; ~170 000 overseas educated Chinese have returned Foreign R&D China’s innovation system, contd.:  China’s innovation system, contd. …knowledge outputs are also increasing Scientific publications from 15th place in 1993 to 5th place in 2004 Patents increased on average by 37 % p.a. in the past ten years High-tech exports 28 % of total exports in 2004 Foreign corporate R&D in China:  Foreign corporate R&D in China Increasing rapidly From product development to innovative R&D China ranked most attractive destination for future investments (UNCTAD) Concentrated in certain sectors Around 15 Swedish or Swedish-related corporations have R&D in China Slide10:  Science is universal Technology is non-localized Most Attractive Global Business Locations Slide11:  China’s high-tech trade Billion USD Slide12:  Technology related costs in LMEs Billions RMB Technology-based innovation in China comes from foreign-invested companies:  Technology-based innovation in China comes from foreign-invested companies 88 % of high-tech export come from foreign-invested companies 65 % by wholly foreign owned Slide14:  Stuck in low margin production Slide15:  Stuck in low margin production ” Wintel ” patents licenses Protectionist China !:  Protectionist China ! More domestic standards Less dependence on foreign technology Government procurement – favouring ”innovative” domestic companies Implement Intellectual Property Rights Strategy and Technological Standards Strategy - perfect the national system of intellectual property rights - promote greater awareness of intellectual property rights and higher standards of management for intellectual property rights in the country, - increase the protection of intellectual property rights - incorporate intellectual property rights management into the entire process of S&T management and make full use of the intellectual property rights system to improve China's S&T innovation standards. :  Implement Intellectual Property Rights Strategy and Technological Standards Strategy - perfect the national system of intellectual property rights - promote greater awareness of intellectual property rights and higher standards of management for intellectual property rights in the country, - increase the protection of intellectual property rights - incorporate intellectual property rights management into the entire process of S&T management and make full use of the intellectual property rights system to improve China's S&T innovation standards. China’s unrelenting push for local standards:  China’s unrelenting push for local standards • TD-SCDMA China 3G Standard Utvecklad avDatang • AVS China Audio Video coding Standard • WCDMA • CDMA2000 EV-DO • MPEG4 • H.264 • WMV-9 • WAPI China WLAN Säkerhetsstandard Utvecl av Iwncomm etc. • IEEE 802.11i • RFID Kina utvecklar egen RFID standard • ISO/IEC18000 • EPC Global • Ubiquitous • DVB-T China Digital TV Broadcast- Terrestrial Standard • DVB-T • T-DMB • IGRS Intelligent Grouping & Resource Sharing. China Standard för Digital Home Source: BDA 自主创新 (Zizhu chuangxin) - Innovative China !?:  自主创新 (Zizhu chuangxin) - Innovative China !? Not pace of innovativeness, but the speed of distribution Plenty of innovation – but ”low-tech” Driven by producers, not by consumers !! Slide20:  自主创新 重点跨越 支撑发展 引领未来 15 year plan – key elements:  15 year plan – key elements Great importance of S&T in the economic growth and transformation of China to an innovation-oriented nation Enterprise-centered national innovation system Indigenous innovation capacity Public procurement Standards 15 year plan - some quantitative targets:  15 year plan - some quantitative targets Raise the R&D to GDP ratio, from the current 1.3% (in year 2005) to 2% by 2010 and to 2.5% by 2020 An S&T advancement contribution rate reaching 60% A reduced dependence on foreign technology to 30% Increased number of Chinese invention patent grants Citations of Chinese S&T papers will make China sit on 5th place in the world. The 15-year plan: the policy instruments:  The 15-year plan: the policy instruments S&T expenditure Tax incentive Financial support Government procurement Introduction and absorption of advanced technologies from abroad and reinnovation based upon such technologies Develop and protect intellectual property right Talent development Education and popular science S&T innovation base and platform Key Fields 1. Energy 2. Water and Mineral Resources 3. Environment 4. Agriculture 5. Manufacturing Industry 6. Transportation Sector 7. Information Industry and Modern Service Industries 8. Population and Health 9. Urbanization and Urban Development 10. Public Safety 11. National Defense :  Key Fields 1. Energy 2. Water and Mineral Resources 3. Environment 4. Agriculture 5. Manufacturing Industry 6. Transportation Sector 7. Information Industry and Modern Service Industries 8. Population and Health 9. Urbanization and Urban Development 10. Public Safety 11. National Defense 16 key projects - core electronic components - high-end universal chips and basic software - very-large-scale integrated circuit manufacturing technologies - new-generation broadband wireless mobile communications - high-grade numerically-controlled machine tools - development of large oil and gas fields and coal-bed gas - nuclear power stations - water pollution control and treatment - cultivation of new strains of genetically modified organisms - manufacturing of new major drugs - prevention and treatment of AIDS and other infectious diseases - large aircraft - high-resolution earth observation systems - manned spaceflight and moon exploration :  16 key projects - core electronic components - high-end universal chips and basic software - very-large-scale integrated circuit manufacturing technologies - new-generation broadband wireless mobile communications - high-grade numerically-controlled machine tools - development of large oil and gas fields and coal-bed gas - nuclear power stations - water pollution control and treatment - cultivation of new strains of genetically modified organisms - manufacturing of new major drugs - prevention and treatment of AIDS and other infectious diseases - large aircraft - high-resolution earth observation systems - manned spaceflight and moon exploration The Ecology of Innovation :  The Ecology of Innovation Necessity-driven innovations Real and pervasive But not exportable Technology-based innovations Requires organic accumulation of people, money, technology and attitudes Takes time to build Not created top-down China will become ”innovative” when::  China will become ”innovative” when: companies pay more attention to customers the quality in product design and engineering improves engineering graduates gain more experience in pragmatic problem-solving company managers place more value on innovation and develop incentives Slide28:  谢谢 ! 白瑞楠 瑞典大使馆 – 科技处 magnus.breidne@itps.se 手机 +86 13801303175

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