OECD says China will become R&D world number two in 2006

The Organization for Economic Cooperation and Development has issued projections that indicate China will overtake Japan by the end of 2006 as the world's second largest R&D investor. The USA remains the clear global leader in this area with $330.0 billion R&D spending versus China's forecast $136.0 billion.

Since 1995, R&D spending as a percentage of Gross Domestic Product is estimated to have doubled to 1.2%, in a period when the economy has grown an average 9%-10% per year.

The OECD also calculates that Japan will spend $130.0 billion and the European Union's 15 members (before 2004 enlargement) $230.0 billion on R&D respectively.