A survey indicates that Chinese enterprises aren't taking research and development seriously as 75 percent of them do not employ anyone to conduct R&D.

"Only 25 percent of the large and medium-sized enterprises have established research and development departments," says the survey report, submitted to an ongoing meeting of the Standing Committee of China's top advisory body, the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

The report points out that in Harbin, capital of northeast China's Heilongjiang Province, only 8.3 percent of large and medium-sized enterprises say R&D investment accounts for more than 5 percent of their sales revenue. Another 14.1 percent say R&D investment has reached 3 percent of their sales revenue.

The report blames the system of performance appraisal of state-owned enterprises, noting that it emphasizes increasing the value of state-owned assets but lacks criteria to appraise the technological innovation of enterprises.

The survey also says of China's fiscal input on science and technology, only 10 percent goes to supporting scientific and technological innovations of enterprises.

CPPCC National Committee members, including Shao Hong, proposed a series of measures to rectify the situation. These include allowing enterprises to participate in scientific and technological programs of the state, enhancing intellectual property protection, and guiding state-owned enterprises to foster a new corporate culture that encourages innovation.

China views weak research and development as an obstacle to sustained economic growth and a hindrance to its international competitiveness.

(Xinhua News Agency July 6, 2006)