Abstract

How has R&D performed in China and Argentina? What level of patenting and scientific production has been recorded in both countries? What are the characteristics of the human resources dedicated to R&D? What are the main challenges facing Argentina in terms of S&T? The report seeks to answer these questions by comparing the trajectories and current conditions of the scientific and technological systems of China and Argentina based on the analysis of the main S&T indicators.

Executive summary

• One of the key aspects that contributed to China's economic growth and technological development was the sustained increase in R&D investment. In the 1990s, China and Latin American countries had relatively similar levels of R&D investment, including Argentina. However, the Asian country has experienced remarkable growth in the last three decades, currently exceeding 2% of GDP, which represents an increase of approximately 300% compared to the previous period. On the contrary, in Argentina, as in most Latin American countries except Brazil, despite facing some variations, it has not managed to exceed 1%.

• R&D funding shows significant differences between the two countries. While in China more than 80% of R&D investment comes from the business sector, in Argentina the situation is the opposite. The low R&D activity of Argentine companies is attributed, in part, to the productive structure focused on activities with little technological dynamism and the lack of interaction between the productive and scientific sectors, which limits the generation of beneficial processes.

• In Argentina, investment in R&D shows a marked concentration in large companies, especially multinational firms. In contrast, in China investment is mostly concentrated in nationally owned companies, including private firms, state-owned enterprises and cooperatives.

• In China, R&D investment is mainly focused on the experimental development of innovative products, unlike in Latin American countries where basic and applied research are usually prioritized. Specifically in Argentina, the distribution of participation in recent years is more balanced, with a slight predominance in applied research.

• China's efforts to strengthen its internal innovation capacity have been successful, achieving a more complex production structure, especially in the manufacturing sector, which represents 78% of corporate R&D investment. In Argentina, the sectors with the greatest R&D activity are the pharmaceutical industry, the software sector and IT services.

• Unlike China, Latin American countries in general have significant disadvantages in terms of a poorly diversified production structure and limited technological capacity. However, it is worth mentioning that in recent years, Argentina has stood out in Latin America due to the emergence of a group of technology-based companies (TBC) that, despite their short history, exhibit great potential for growth and international projection.

• China leads the world in patenting volume, experiencing a notable increase in patent applications and grants in recent years. At the same time, it has become one of the largest holders of artificial intelligence patents. In Latin America, the level of patenting remains limited, with Brazil being the most active country, although with lower figures than the technological leaders. Argentina is ranked sixth in this area within the region.

• Scientific production in China has seen a remarkable increase in recent years, with an almost 19-fold increase in the number of articles in scientific and technical publications from 1996 to 2020. In the last ten years, around 25% of the articles have dealt with key strategic technologies, such as artificial intelligence, robotics, biotechnology or nanotechnology. The number of articles published by Argentine authors also shows a growing trend, although at a slower pace compared to the Chinese case. Most of the publications are oriented to topics in health sciences, agriculture, physics, biology and cross-cutting strategic technologies.

• China is one of the countries with the highest number of researchers in absolute terms worldwide. 80% of R&D human resources are dedicated to experimental research, while 12% focus on applied research and the remaining 8% on basic research. Argentina, on the other hand, has the highest density of researchers per million inhabitants in Latin America. The majority of R&D personnel are employed in state universities and government science agencies, together representing 78% of human resources in this field.