According to a report from the National Bureau of Statistics, the China Innovation Index has reached 165.3 in 2023 (with 2015 as the baseline of 100), marking a 6% increase from the previous year. This index comprises various components: the Innovation Environment Index, Innovation Input Index, Innovation Output Index, and Innovation Effectiveness Index, which recorded values of 177.1, 155.0, 199.7, and 129.4, respectively. Each of these also showed growth, with increases of 10.4%, 5.5%, 6.5%, and 0.4%.
Can you expand on the Innovation Environment Index?
In 2023, the Innovation Environment Index was reported at 177.1, up by 10.4% from 2022. Notably, all five evaluation indicators in this category saw growth. For instance, the percentage of companies benefiting from additional tax deductions considerably improved, rising by 24%. Furthermore, the proportion of science and engineering graduates among the eligible population increased by 15.1%, maintaining a double-digit growth rate. Other positive indicators included the number of college-educated employees per every 10,000 individuals, an increase in GDP per capita, and a rise in the share of science and technology funding from fiscal allocations, which grew by 6.6%, 5.4%, and 2.3%, respectively.
What insights can you provide about the Innovation Input Index?
The Innovation Input Index for 2023 stood at 155.0, reflecting a 5.5% increase compared to the previous year. Breaking this down further, three out of the four evaluation indicators saw an uptick, while one experienced a decline. The number of R&D personnel per 10,000 individuals reached record highs, increasing by 14.1%, also marking a continuing double-digit growth. Additionally, the ratio of R&D spending to business revenues rose by 6.1%, with R&D expenditures as a percentage of GDP climbing by 3.6%. However, it’s worth noting that funding per researcher in basic research dropped by 1.2%.
What about the Innovation Output Index?
The Innovation Output Index has reached 199.7 for 2023, indicating a 6.5% rise from last year. All four indicators in this area showed positive growth. For example, the number of high-value invention patents owned per 10,000 R&D personnel surged by 15.6%, maintaining a strong double-digit growth trajectory. Other indicators, such as the average contract amount in the technology market and the proportion of registered trademark-bearing companies, increased by 5.0% and 4.7%, respectively, while the number of scientific papers published per 10,000 people grew by 1.2%.
Lastly, can you discuss the Innovation Effectiveness Index?
The Innovation Effectiveness Index for 2023 was recorded at 129.4, a modest increase of 0.4% from the previous year. This category consists of five indicators, three of which improved, one remained unchanged, and one declined. Notably, the labor productivity index grew at a relatively fast pace, increasing by 5.7%. The proportion of new product sales revenue to total business income rose by 2.0%, and the contribution of the “three-new” economy to GDP increased by 1.7%. Meanwhile, the proportion of value added from patent-intensive industries to GDP stayed the same as last year, but high-tech product exports as a share of total merchandise exports dropped by 6.7%.
