Communiqué on National Expenditures on Science and Technology in 2006

National Bureau of Statistics

Ministry of Science and Technology

Ministry of Finance

12 September, 2007

In 2006, China’s total expenditures on science and technology (S&T) continued to maintain a rapid growth. S&T funds allocated by national finance was further consolidated, while the expenditures of research and development (R&D) funds have increased steadily. The input intensity reached the highest level in the history.

I. Input of R&D funds

In 2006, total R&D expenditures reached 300.31 billion yuan, jumping 55.31 billion yuan as compared with previous year, up by 22.6 percent, and with 1. 42 percent of input intensity. The average R&D expenditure per capita by R&D personnel (full-time work) was 200 thousand yuan, 20 thousand yuan more than the previous year.

In terms of different types of activities, the expenditure on basic research hit 15.58 billion yuan, increased 18.8 percent year-on-year; the expenditure on applied research stood at 50.45 billion yuan, increased 16.4 percent; the expenditure on experimental development totaled 234.28 billion yuan, climbing 24.3 percent. The proportion of the above three items was 5.2, 16.8 and 78 percent respectively.

In terms of different executive departments, the expenditures by all types of enterprises reached 213.45 billion yuan, a year-on-year increase of 27.5 percent; the expenditures by research institutions subordinated to the government departments arrived at 56.73 billion yuan, grew 10.6 percent; the expenditures by universities amounted for 27.68 billion yuan, climbing 14.2 percent. The proportion of expenditures among enterprises, research institutions and universities was 71.1, 18.9 and 9.2 percent respectively.

In terms of different sectors, there are seven sectors having input intensity exceeded 1.0 percent in R&D funding. The proportion of pharmaceutical manufacturing reached 1.76 percent, while 1.7 percent for special equipment manufacturing, 1.48 percent for electric machinery and equipment manufacturing, 1.47 percent for general equipment industry, 1.38 percent for transportation equipment manufacturing, 1.19 percent for rubber manufactures and 1.19 percent for communications equipment, computer and other electronic equipment manufacturing.

In terms of different regions, there were nine provinces and municipalities with R&D expenditures more than ten billion yuan, they are Beijing, Jiangsu, Guangdong, Shanghai, Shandong, Zhejiang,  Liaoning, Sichuan and Shanxi. The total expenditures of these nine provinces and municipalities reached at 215.4 billion yuan, accounting for 71.7 percent to national total expenditures. There were seven provinces and municipalities with R&D expenditures intensity at or above national average level.

II. S&T funds allocated by finance

In 2006, S&T funds allocated by national finance amounted to 168.85 billion yuan, a year-on-year increase of 35.36 billion yuan, and rose 26.5 percent, sharing 4.2 percent to national financial expenditure, and reached the highest level since 1998. Of this total, S&T funds allocated by central finance valued at 100.97 billion yuan, increased 25 percent over the previous year, accounting for 10.3 percent to the central financial expenditure; S&T funds allocated by local finance totaled 67.88 billion yuan, a year-on-year increase of 28.8 percent, accounted for 2.2 percent to local fiscal expenditures, a little higher than previous year.

Financial Allocation for Science and Technology in 2006

Appendix I Expenditures in R&D by Region in 2006

Appendix II S&T Funds Allocated by Local Finance

 Note: 1. The top six sectors only comprise the data of large and medium-sized industrial enterprises. 

2. The financial expenditures on capital construction of scientific research in this communiqué was calculated in accordance with the share of government funds in the total capital construction of scientific research and the total funds raised in S&T activities.  

Explanation for Key Indicators: 

Expenditures on R&D: refers to the actual expenditures spent in basic researches, applied researches and experimental development by executive units within statistical year. Including personnel fees, material costs, purchasing and construction fees of fixed assets, management fees and other expenses that actually spent in R&D activities. 

Basic Research: refers to the experimental researches and theoretical researches in order to obtain new knowledge on basic theory regarding phenomenon and observed facts (exploring essence and kinetic discipline of objective thing, achieving new development and neodoxy), it does not aim at any special or specific application or use. 

Applied Research: Refers to creationary researches in order to confirm the possible uses of basic research results, or exploring new methods (principal), or new approaches to be adopted so as to achieve scheduled objective, Applied research aimed at a specific purpose or goal. 

Experimental development: refers to new craftwork, system and service established in order to produce new products, materials or installations, and systematic work carried out to substantially improve the existing craftwork, system and service, by utilizing the knowledge obtained from basic research, applied research and practical experiments. 

Expenditure input intensity on R&D: Refers to the ratio of R&D expenditures to the GDP; expenditure input intensity on R&D by sector refers to the ratio of R&D expenditures to the sales revenues. 

S&T funds allocated by Finance: Refers to all funds directly used in S&T activities allocated by financial departments at all levels within statistical year, including operating expenses for science, expenditures in S&T promotion, expenditures on capital construction of scientific research, and other relevant operating expenses in scientific researches.