China’s R&D Investment and Intellectual Property Power: The Future Strategy of the World’s Second-Largest Research Nation

News Overview

According to the China National Intellectual Property Administration (CNIPA), China’s total R&D (Research and Development) expenditure in 2024 reached 3.6 trillion yuan (approximately 74.4 trillion yen), an 8.3% increase from the previous year. This figure ranks second in the world and surpasses the EU average by 2.68%. Furthermore, the total number of valid invention patents in China has reached 5.01 million, with 524,000 enterprises holding valid invention patents amounting to 3.727 million. Collaboration among companies, universities, and research institutions is accelerating the practical application of these patents.

Scale of Investment and Global Comparison

The fact that China is “second in the world” in R&D expenditure symbolizes that the country is no longer a mere “follower” but a “competitor.” With a scale second only to the United States and surpassing the EU average, this demonstrates that China is driving the entire innovation cycle as part of its national strategy. Particularly striking is the 8.3% year-on-year growth rate, which stands out against the backdrop of a slowing overall economy.

Quantitative Expansion and Qualitative Transformation of Intellectual Property

The sheer scale of 5.01 million valid invention patents is overwhelming. More importantly, universities and research institutions are shifting from simply producing academic papers to “industrial demand-driven patent commercialization.” Applications for patent transfers and licenses are surging, with increasing utilization of high-value patents in fields such as AI, smart manufacturing, and green technology. This represents a shift from “patents as dormant assets on the shelf” to “patents as circulating capital in the market.”

IP Protection and Institutional Credibility

It is also noteworthy that social satisfaction with IP protection has reached 82.36 points, the highest ever. Traditionally, China’s IP system was criticized for its “weakness against imitation and infringement,” but through institutional development and strengthened enforcement, it is gaining credibility from both domestic and international players. This may also positively influence foreign investment attraction and international joint research.

Future Prospects and Challenges

  • Deepening industrial application

How efficiently can patent commercialization be advanced?

  • Balancing international competition

How will China address technological friction and standardization battles with the U.S., Europe, and Japan?

  • Maturing the IP ecosystem

Strengthening litigation systems and international mutual recognition will be the next challenges.

Conclusion

China is advancing a shift “from quantity to quality” in both R&D investment and intellectual property power, and this progress is directly tied to the global competition for technological supremacy. The latest data is more than just statistics—it signals the arrival of the “Era of China-Driven Innovation.”