China likely to surpass US in R&D spending: report

China is likely to surpass the US in research and development spending by the end of this year, a top American science body has said, underlining that Beijing has increased its spending in the sector at an average of 18 per cent per year between 2000 and 2015.

China spends 5 per cent of its total R&D funds on basic research and 85 per cent on development, while the US spends 17 per cent on basic research and 64 per cent on development, the National Science Board said in its latest Science and Engineering Indicators.

Noting that R&D spending is a driver of innovation, the report said in 2015, the US spent most on R&D, accounting for 26 per cent (USD 496 billion) of the estimated 1.9 trillion global total. China was a decisive second at 21 per cent at USD409 billion.

"If current trends continue, the National Science Board expects China to pass the US in R&D expenditures by the end of 2018," the report said, according to which China has rapidly increased R&D spending over time an average of 18 per year between 2000 and 2015, compared to 4 in the US