China is expected to invest up to twice as much as the US, or US$658 billion (4.5 trillion yuan) in another five years, in the back end of R&D chain, focusing on translating basic and applied research into commercial products and new manufacturing processes according to BCG.
Contributions by the private sector account for 34% of university R&D budgets in China while companies contribute less than 5% in the US. About 38% of published research in China focuses on engineering, comparing with 11% in the US.
Development accounts for 84% of China’s total R&D spending. And, China’s spending on development rose by a compound annual growth rate of around 20% over the past decade, compared with 5% in the US. In 2003, the US spent four times as much as China on development research; in 2013, the two nations spent roughly equal amounts.