China s Technology Development and Innovation Strategy

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 26 th, 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 Four Targets Invest 2.5% of GDP in R&D Reduce s dependence on foreign technologies to 30% By 2020 Five Focuses Develop technologies in energy, water resources and environmental protection Innovation in IT and new materials to improve s technologies in manufacturing Increase the contribution of technologies to economic growth to 60% Rank in the world s top five countries in patents granted and citations used in international science paper Develop biotechnology to further its application in agriculture, industry, human and health services Accelerate the development of aerospace and marine technology Strengthen R&D in basic science and cutting-edge technology 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

Medium-to-long-term S&T National Plan: Energy Focus Five Priorities Industrial energy-saving By 2020 Two Key Projects 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 Extra large scale electricity transmission and distribution; grid safety control Exploit and develop large-scale oil, gas and CBM fields Build large-scale and advanced PWR and high temperature gas cooled reactor 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

Short-term technology development plan: Key elements Invest 2% of GDP in R&D By 2010 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 Source: 11 th Five-year S&T National Plan, 十 一 五 科 技 发 展 规 划, http://www.most.gov.cn/kjgh/kjfzgh/

12 th Five-year S&T plan under construction Who leads the 12 th Five-year S&T plan? Team lead WAN Gang 万 钢, Minister of MOST Mr. MA Junru 马 俊 如, Former Director General of State Administration of Foreign Experts Affairs of China (SAFEA) Advisory group 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 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

12 th Five-year energy development plan being finalized Five focuses Two targets Develop new energy industries Strengthen traditional energy industries By 2015, total energy demand reaches 3.9-4 billion tons of standard coal Improve energy security Enhance technological innovation Improve the electricity provision conditions of rural and urban residents 2010-2015, Energy intensity reduces between 3.5-3.8% annually Source: Preview of the 12 th 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

Government and gross R&D expenditure, billion yuan R&D intensity (R&D expenditure/gdp, %) Increasing R&D spending China s R&D Expenditure and Intensity, 1998-2009 500 450 400 350 1.07 1.13 1.23 1.33 1.42 1.49 1.5 1.47 1.6 1.4 1.2 300 0.8 0.9 0.9 1 250 200 0.7 0.8 0.6 150 100 0.4 50 0.2 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 Government S&T appropriation, billion yuan Gross R&D expenditure, billion yuan R&D intensity Source: China Science & Technology Statistics Data Book, 2007, 2008, 2009 http://www.most.gov.cn/eng/statistics/2009/index.htm

Million US Dollars Government S&T appropriation: Central vs. local governments 18.0 16.0 14.0 15.1 15.5 16.0 12.0 12.1 10.0 8.0 6.0 4.0 2.0 3.6 5.3 5.2 4.1 4.3 2.8 2.0 2.2 1.6 3.4 6.6 3.9 7.6 4.6 9.1 10.3 5.0 6.0 7.9 10.1 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Central government S&T appropriation Source: China Science & Technology Statistics Data Book, 2008, http://www.sts.org.cn/zlhb/zlhb2008.htm Local governments S&T appropriation

Key government funded R&D programs in China Program 863: National High-Tech R&D Program National Natural Science Fund Key Technologies R&D Program 973: National Basic Research Program Subject IT, energy, resources and environment, advanced materials, biotechnology and agricultural technology, advanced manufacturing and automation, marine, space and laser technology. Basic and applied research in the natural sciences with most funding directed to life science and engineering. R&D in agriculture processing and biotechnology, key manufacturing technologies, IT and high-tech industries, environment, traditional Chinese medicine, and social development 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 Total funding for 863 program was $795 million in 2008 Note: conversion rate $1=6.5yuan Source: Annual report of the State Programs of S&T development, 2009

973 Program s energy focus Explore micro-algae as energy source Utilize combustible solid waste energy UHV power transmission High efficiency, lowcost 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 Technology Integration of solar power generation and building integrated solar technology systems Biomass fuels and biomass power generation Wind power generation Hydrogen energy and fuel cell Natural gas hydrates Details Solar and PV power generation system, thin-film solar cells, building integrated solar, low-cost, low-pollution and highpurity silicon material production, solar thermal utilization for industrial application. Non-food energy crops and ethanol from cellulosic materials, energy forestry, bio-diesel, biomass briquettes and biomass gasification, biogas power generation and more. Wind energy resources assessment, large high-efficiency wind turbines, offshore turbines and wind farms. Technologies for the production, storage and transportation of hydrogen, technologies for new types of fuel cells and fuel cell automobiles. Technologies for the exploration, development, storage, transportation, and utilization of gas hydrates. Source: International Science and Technology Cooperation Program on New and Renewable Energy, 2007 http://www.china.org.cn/english/environment/233359.htm

Conclusions Making a deliberate, holistic plan and longterm 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.