2012 also witnessed global economy slowdown. However, the Chinese society has become increasingly aware of the importance of R&D for the past few years. As Chinese enterprises began to increase their investment into R&D, China’s NRDI reached a historic high, 2.08, in 2012. Statistics suggest that Chinese society’s investment in R&D reached RMB 1.4 trillion, among which Chinese enterprises accounted for RMB 1.1 trillion, while government, high schools and tourist organizations accounted for RMB 300 billion in total. China’s goal is to reach 2.7 by the year 2025.

　　Zhao: What does an NRDI of 2.08 mean?

　　Zhang:NRDI is basically the ratio of total R&D investment to GDP. At present, the US’s NRDI is 2.8. Our goal is to reach 2.7 by 2025. More specifically, Shenzhen and Shanghai plan to reach 4.1 and 3.7 by that year. From this aspect, we can see that China has reached a turning point where it’s no longer a dream to become an innovation-driven economy, but a reality.

　　Zhao: We also noticed that the Chinese government didn’t start promoting mass innovation and entrepreneurship until 2012. Why 2012?

　　Zhang:Above all, the Chinese government’s move was in accordance with the economic rule since 2012 witnessed a turning point in terms of NRDI. Secondly, the ratio of added value of the service industry to GDP also changed in 2012. Thirdly, the contribution of consumption to the economy also rose in 2012. Fourthly, China’s GDP growth rate dropped to less than 8 per cent in 2012 and 7 per cent in 2015. Last but not least, China’s Gini Coefficient started to drop and income gap between rural and urban China gradually narrowed since 2012. Why 2012?

　　In other words, 2012 is a new beginning. Over three decades after the reform and opening up, China’s economy has embarked a new path. New stories are to be told and new trends are to be set. Coincidentally, the 18th CPC National Congress was also held in 2012.

　　It was also in 2012 that concepts such as “firmly grasping the solid foundation of real economy” and “firmly grasping expanding domestic demand as the strategic pivot” were come up with.

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　　[The article is published and edited with authorization from the author @Zhao Hejuan, please note source and hyperlink when reproduce.]

　　Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.