According to the National Bureau of Statistics, China’s Innovation Index for 2023 increased by 6.0% compared to the previous year, reaching a level of 165.3. This figure reflects China’s steady enhancement of its innovation capacity as it continues to emphasize “high-quality development.” Notably, in areas such as innovation environment, investment, creation, and outcomes, each sector has shown remarkable improvement.
Improvement in the Innovation Environment: Supporting Business Growth Through Policy
The Innovation Environment Index rose by 10.4% year-over-year, reaching 177.1. A key highlight is the 24.0% increase in companies benefitting from tax deduction and exemption policies. This indicates the government’s proactive policies to promote innovation, creating an environment where companies can actively engage in R&D and adopt new technologies. Incentives such as tax benefits motivate companies to take risks in advancing technological development, thus establishing a foundation that supports innovation.
Expansion of Innovation Investment: Fostering Talent and Significant R&D Investments
Next, the Innovation Investment Index grew by 5.5% year-over-year to 155.0. Particularly noteworthy is the 14.1% increase in the full-time equivalent (FTE) of R&D personnel per 10,000 people, maintaining double-digit growth. This suggests that efforts to cultivate researchers and improve workforce quality are advancing. Long-term growth necessitates talent investment, and a rising proportion of full-time personnel in the R&D sector strengthens technological uniqueness and market competitiveness.
Acceleration in Innovation Creation: Increase in High-Value Invention Patents
In the field of innovation creation, the number of high-value invention patents held per 10,000 R&D personnel increased by 15.6%, underscoring the deepening of China’s technological innovation capacity. This growth is noteworthy not merely for the rise in patent numbers but for the increase in high-value invention patents likely to impact the market. Such patents are a vital factor enhancing China’s competitiveness in the global technology race.
Improvement in Innovation Outcomes: Economic Stabilization Through Productivity Gains
Finally, a 5.7% rise in the labor productivity index for all workers in the innovation outcomes sector indicates that the results of innovation are contributing to productivity improvements across the workforce. Enhancements in technology and processes lead to higher productivity, creating positive ripple effects throughout the economy.
Conclusion: Innovation as the Foundation for Future Growth
The improvement in China’s Innovation Index represents not merely a numeric increase but a tangible effort to achieve high-quality development. Through a multifaceted approach that includes policy support, strengthened talent development, the creation of high-value technology, and productivity gains, China is laying the groundwork for sustainable future growth.
