(Yicai) March 21 -- Enterprises, as the representatives of the private sector, are becoming China's core engine of technological innovation, as their role in the tech industry is becoming increasingly important, according to a report from Dalian University of Technology.

The proportion of research and development investment from enterprises jumped to 78 percent in 2022 from 41 percent in 1995, with those from research institutions and universities representing the public sector declining to some extent, according to the report released on March 18.

The findings align with data from the National Bureau of Statistics, which indicated that China's corporate R&D expenditure totaled CNY2.59 trillion (USD357.3 billion) in 2023, accounting for 78 percent of the total. The proportion is close to 79 percent in the United States and Japan and higher than 67 percent in Germany and 66 percent in France, according to the NBS.

More than half of China's R&D spending in 2022 went to the industry and information technology sectors, accounting for 30 percent and 26 percent, respectively, of the total, the DUT report showed. Chinese new energy vehicle firms and healthcare companies had R&D intensities of over 10 percent and up to 85 percent, respectively, that year.

Huawei Technologies was the fifth-biggest R&D corporate investor globally in 2022, with EUR20.9 billion (USD22.6 billion) spent and an R&D intensity of 24 percent, according to the report. Tencent Holdings ranked 19th with an R&D expenditure of EUR8.2 billion (USD8.9 billion) and an R&D intensity of 11.1 percent. Notably, Alibaba Group Holding ranked 22nd and China State Construction Engineering Corporation 30th.

Chinese private R&D investment is transitioning from quantitative to qualitative, according to DUT. Even though Chinese enterprises invest large sums in R&D and occupy leading positions in high-tech sectors, there are still challenges and concerns. In fact, DUT believes that scale does not always equal strength, and how funds are used should be the most important, not how much is used.

"Universities and research institutions need to invest more in scientific research, and enterprises should conduct more fundamental and applied research based on common technologies to achieve fundamental innovations in technology," DUT pointed out.  

Editor: Futura Costaglione