Friday, March 2, 2012

Chinese Industrial Firms to Invest More in R&D

Industrial companies in Shanghai may invest an average of 1.5 percent of their revenue in research and development by 2015, a jump from 0.9 percent in 2010, as they support the city's target to improve the quality of its industrial sector.
 
"Though 0.9 percent was already one of the highest on China's mainland, it's still lagging behind that in Western countries," said Liu Jian, deputy director of the Shanghai Municipal Commission of Economy and Information Technology.
 
Shanghai-based Baoshan Iron and Steel Co spends 2 percent of its revenue in R&D while US firms invest 5 percent of revenue in R&D. The top tech giants, including Microsoft and Cisco, allocate 10 percent of their revenue on R&D annually.
 
In 2015 about 55 percent of the fixed-asset investment in the city's industrial sector will be to upgrade technology, according to the commission.
 
It also added that the output of strategic industries, including new energy, integrated circuit and next-generation network, is expected to double in the five years through 2015.
 
Under Shanghai's 12th Five Year Plan for the industrial sector the city aims to have three local industrial firms in the Fortune 500 list by 2015.

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