The Empirical Study on Development Path of R&D Intensity

Chinese ratio of research and development (R&D) spending to its gross domestic product (GDP)more than doubled from 0.57 percent in 1995 to 1.49 percent in 2007. This study documents the pattern of science and technology(S&T) take-off, characterized by an abrupt increase in the "S" Curve of R&D to GDP ratio. This abrupt increase, observed in many of the innovation-oriented countries, typically drives R&D intensity from below 1 percent to the range of 2-3 percent. The upward trend of R&D intensity in China is generally in agreement with the international rule. It has entered the second phase of S&T take-off which is a crucial period. Although the Chinese ratio of R&D to GDP is still fewer than that of developed countries, this study documents that China has begun a similar S&T take-off so early, and the increase of R&D/GDP is consistent with that of GDP. So R&D intensity in China will be able to realize the steady and quick growth.