World Resources Institute

China’s Technology Development and

Innovation Strategy

Xiaomei Tan, Ph.D.

Project Manager

China Climate and Energy Program

World Resources Institute

October 26th, 2010; CSIS

Four strategic approaches

Medium-to-Long-term Science and Technology National

Plan

Short Term Technology Development Plan

Rapidly growing R&D funding by the central and

provincial governments

Promoting international collaboration

Medium-to-long-term S&T National Plan:

Key Elements

Source: Medium-to-long-term S&T National Plan, 国家中长期科技发展规划,

http://www.gov.cn/jrzg/2006-02/09/content_183787.htm

By 2020

Four Targets Five Focuses

Invest 2.5% of GDP in R&D Develop technologies in energy, water

resources and environmental protection

Reduce ’s dependence on foreign

technologies to 30%

Innovation in IT and new materials to

improve ’s technologies in manufacturing

Increase the contribution of technologies to

economic growth to 60%

Develop biotechnology to further its

application in agriculture, industry, human

and health services

Rank in the world’s top five countries in

patents granted and citations used in

international science paper

Accelerate the development of aerospace

and marine technology

Strengthen R&D in basic science and

cutting-edge technology

Medium-to-long-term S&T National Plan:

Energy Focus

Source: Medium-to-long-term S&T National Development Plan Outline, Energy Technology Development

国家中长期科技发展规划纲要-能源技术发展重点 http://www.gov.cn/jrzg/2006-02/09/content_183787.htm

By 2020

Five Priorities Two Key Projects

• Industrial energy-saving

• Exploit and develop large-scale oil, gas

and CBM fields

• Efficient utilization, liquefaction, and

poly-generation of coal (e.g., IGCC)

• Survey, development and exploitation of

petroleum resources under complicated

geological conditions

• Low-cost development and utilization of

renewable resources at economic scale • Build large-scale and advanced PWR and

high temperature gas cooled reactor• Extra large scale electricity transmission

and distribution; grid safety control

Short-term technology development plan:

Key elements

Source: 11th Five-year S&T National Plan, 十一五科技发展规划, http://www.most.gov.cn/kjgh/kjfzgh/

By 2010

• Invest 2% of GDP in R&D

• Reduce ’s dependence on foreign technologies to 40%

• Increase the contribution of technologies to economic growth to 45%

• Rank in the world’s top 10 countries in citations used in international science paper

• Rank in the world’s top 15 countries in patents granted

• Added value of high-tech products versus added value of manufacturing reach 18%

• 50 million people working in the field of S&T, including 7 million scientists,

technicians and engineers

12th Five-year S&T plan under construction

Source: 科技部召开"十二五"科技规划专家顾问组第一次会议http://www.gov.cn/gzdt/2010-07/02/content_1644110.htm

Who leads the 12th Five-year S&T plan?

Team leadWAN Gang 万钢,

Minister of MOST

Advisory group

Mr. MA Junru 马俊如,

Former Director General of State Administration of Foreign Experts

Affairs of China (SAFEA)

Mr. FU Zhihuan 傅志寰,

Former Minister of Railways of China

Ms. HU Qiheng 胡启恒,

Former Chairperson of the Institute of Automation, China Academy

of Sciences

Leadership of the member agencies

Five focuses Two targets

Develop new energy industriesBy 2015, total energy demand reaches 3.9-

4 billion tons of standard coalStrengthen traditional energy industries

Improve energy security

2010-2015, Energy intensity reduces

between 3.5-3.8% annually

Enhance technological innovation

Improve the electricity provision conditions

of rural and urban residents

12th Five-year energy development plan

being finalized

Source: Preview of the 12th Five-year Plan: Seize the Height of Energy Technologies,

能源十二五规划前瞻:抢占新能源技术高地, Outlook Weekly, Issue 18, 2010,

http://www.lwgcw.com/NewsShow.aspx?newsId=5672

Increasing R&D spending

0.7

0.8

0.9 0.9

1.071.13

1.231.33

1.42 1.49 1.5 1.47

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

0

50

100

150

200

250

300

350

400

450

500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

R&

D in

ten

sit

y (

R&

D e

xp

en

dit

ure

/GD

P,

%)

Go

vern

men

t an

d g

ross R

&D

exp

en

dit

ure

, b

illio

n y

uan

Government S&T appropriation, billion yuan Gross R&D expenditure, billion yuan R&D intensity

China’s R&D Expenditure and Intensity, 1998-2009

Source: China Science & Technology Statistics Data Book, 2007, 2008, 2009

http://www.most.gov.cn/eng/statistics/2009/index.htm

Government S&T appropriation: Central vs.

local governments

3.64.1 4.3

5.3 5.2

6.6

7.6

9.1

10.3

12.1

15.115.5

1.62.0 2.2

2.83.4

3.94.6

5.0

6.0

7.9

10.1

16.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Mill

ion

US

Do

llars

Central government S&T appropriation Local governments S&T appropriation

Source: China Science & Technology Statistics Data Book, 2008,

http://www.sts.org.cn/zlhb/zlhb2008.htm

Key government funded R&D programs in China

Program Subject

863: National High-Tech

R&D Program

IT, energy, resources and environment, advanced

materials, biotechnology and agricultural technology,

advanced manufacturing and automation, marine, space

and laser technology.

National Natural Science

Fund

Basic and applied research in the natural sciences with

most funding directed to life science and engineering.

Key Technologies R&D

Program

R&D in agriculture processing and biotechnology, key

manufacturing technologies, IT and high-tech

industries, environment, traditional Chinese medicine,

and social development

973: National Basic

Research Program

Basic and applied research in energy, agriculture,

information, environment, population, and health,

materials and synthesis.

Source: China Ministry of Science and Technology (MOST),

http://www.most.gov.cn/eng/programmes1/index.htm

863 Program’s energy focus

Hydrogen and fuel

cell

Energy efficiency

Clean coal

Renewable energy

Source: Annual report of the State Programs of S&T development, 2009

Total funding for 863 program was

$795 million in 2008

Note: conversion rate $1=6.5yuan

973 Program’s energy focus

Explore micro-algae

as energy source

Utilize combustible

solid waste energy

UHV power

transmission

High efficiency, low-

cost PV cells

Total funding for 973 and National Key

Science Program was $292 million in 2008

Note: conversion rate $1=6.5yuan

Source: Annual report of the State Programs of S&T development, 2009

Promoting International Collaboration

on Clean Energy

Source: International Science and Technology Cooperation Program on New and Renewable Energy, 2007

http://www.china.org.cn/english/environment/233359.htm

Technology Details

Integration of solar power

generation and building

integrated solar technology

systems

Solar and PV power generation system, thin-film solar cells,

building integrated solar, low-cost, low-pollution and high-

purity silicon material production, solar thermal utilization

for industrial application.

Biomass fuels and biomass

power generation

Non-food energy crops and ethanol from cellulosic

materials, energy forestry, bio-diesel, biomass briquettes

and biomass gasification, biogas power generation and

more.

Wind power generationWind energy resources assessment, large high-efficiency

wind turbines, offshore turbines and wind farms.

Hydrogen energy and fuel cell

Technologies for the production, storage and transportation

of hydrogen, technologies for new types of fuel cells and

fuel cell automobiles.

Natural gas hydratesTechnologies for the exploration, development, storage,

transportation, and utilization of gas hydrates.

Conclusions

Making a deliberate, holistic plan and long-

term commitment to innovation and

technology development;

Establishing direct R&D funding programs to

support energy technology innovation;

Relying on international cooperation to

pursue new-to-market technology and

knowledge.