ABSTRACT

The potential determinants of China's increasing research and development (R&D) expenditure, which jumped from 0.62 per cent in 1987 to 1.42 per cent in 2006, are investigated. Most of the existing literature surrounding R&D addresses productivity and growth issues 1 but studies on R&D's determinants are scarce. This chapter attempts to address this gap by exploring the determinants of China's increasing R&D expenditure within a comprehensive framework.