Survey: Chinese enterprises fail to fund R&D
(Xinhua)
Updated: 2006-07-05 22:51
A survey indicates that Chinese enterprises aren't taking research and
development seriously as 75 percent of them do not employ anyone to conduct
R&D.
"Only 25 percent of the large and medium-sized enterprises have established
research and development departments," says the survey report, submitted to an
ongoing meeting of the Standing Committee of China's top advisory body, the
National Committee of the Chinese People's Political Consultative Conference
(CPPCC).
The report points out that in Harbin, capital of northeast China's
Heilongjiang Province, only 8.3 percent of large and medium-sized enterprises
say R&D investment accounts for more than 5 percent of their sales revenue.
Another 14.1 percent say R&D investment has reached 3 percent of their sales
revenue.
The report blames the system of performance appraisal of state-owned
enterprises, noting that it emphasizes increasing the value of state-owned
assets but lacks criteria to appraise the technological innovation of
enterprises.
The survey also says of China's fiscal input on science and technology, only
10 percent goes to supporting scientific and technological innovations of
enterprises.
CPPCC National Committee members, including Shao Hong, proposed a series of
measures to rectify the situation. These include allowing enterprises to
participate in scientific and technological programs of the state, enhancing
intellectual property protection, and guiding state-owned enterprises to foster
a new corporate culture that encourages innovation.
China views weak research and development as an obstacle to sustained
economic growth and a hindrance to its international competitiveness.
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