Upgrading to Digital Economy:Perspectives from China-Brazil Cooperation

in Science, Technology and Innovation

GAO ChanglinCounsellor for Science and Technology

Embassy of China in Brazil

Brazil-China Innovation Dialogue 2018

November 13th-14th

I. Development of Digital Economy in China

II. Scientific and Technological Capabilities for Digital Economy Development in China

III. Cooperation in STI for Digital Economy between China and Brazil

I. Development of Digital Economy in China

2018/11/23

• To develop digital economy, – we must accelerate the promotion of digital industrialization. Driven

by innovation of information technology, new industries, new business forms and new business models are constantly created, using new drivers to promote new developments

– we must promote industrial digitization. By using new internet technologies and new applications, traditional industries are transformed from all directions, all angles and all value-chains and total factor productivity is raised, unleashing the role of the digital economy in expanding, accumulating and fostering economic development.

--Xi Jinping’s Speech at the National Cybersecurity and Informatization Work Conference, April 21, 2018

2018/11/23

Source:Chinese Academy of Information and Communication Technology(CAICT): White Paper

of China's Digital Economy Development 2017

2018/11/23

Source:OECD, Digital Economy Outlook 2017.

2018/11/23

Source:OECD, Digital Economy Outlook 2017.

2018/11/23

Source:Chinese Academy of Information and Communication Technology(CAICT): White Paper

of China's Digital Economy Development 2017

2018/11/23

Source:Digital Economy Forum, Ali Research, and KPMG, Meeting the New Wave of Digital

Economy: Global Digital Economy Development Index 2018.

5 sub-indices: Digital infrastructure; Digital research; Digital consumption; Digital industry ecology; Digital public service

II. Scientific and Technological Capabilities for Digital Economy Development in China

R&D Expenditure

11

China’s GERD accounts for about one fifth of the world total

0.00

0.50

1.00

1.50

2.00

2.501991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

0

50

100

150

200

250

300

R&D(Billion USD)R&D/GDP(%)

Source:MOST, China Science and Technology Statistic Yearbook.

GERD(Billion USD) in selected countries

0.0

100.0

200.0

300.0

400.0

500.0

600.0

1981

19

82

1983

19

84

1985

19

86

1987

19

88

1989

19

90

1991

19

92

1993

19

94

1995

19

96

1997

19

98

1999

20

00

2001

20

02

2003

20

04

2005

20

06

2007

20

08

2009

20

10

2011

20

12

2013

20

14

2015

20

16

2017

United StatesChinaJapanGermanyKoreaBrazil

Source:OECD, Main Science and Technology Indicators 2018-1

MCTI, Indicadores Nacionais de Ciência, Tecnologia e Inovação 2018.

• 3700 Government Research Institutions

• 2500 Higher Education Institutions

• 489 National Key Labs

• 359 National Research Centers for Engineer Technology

Public R&D Infrastructures

• 168 State-level Science and technology Industrial Parks by March of 2018

• 91000 high-tech enterprise in 2016• 3255 Incubators and 4298 mass maker

spaces with 133,286 start-ups in 2016• 2400 R&D Centers of FDI firms in 2016

2018/11/23

Notes: VA-Value Added; BERD-Business Expenditure on R&DRERD-R&D Researchers; PERD-R&D Personnel

Selected indicators of ICT Sector

Source:EU, The 2018 PREDICT Key Facts Report. An Analysis of ICT R&D in the EU and Beyond

2018/11/23

Source:EU, The 2018 PREDICT Key Facts Report. An Analysis of ICT R&D in the EU and Beyond

2018/11/23

Source:OECD, Digital Economy Outlook 2017.

Notes: IP5 refers to 5 major patent offices, i.e. the European Patent Office [EPO], the Japan Patent Office [JPO], the Korean

Intellectual Property Office [KIPO], the State Intellectual Property Office of the People’s Republic of China [SIPO] and the United

States Patent and Trademark Office [USPTO]).

2018/11/23

Source:WIPO, Statistics Database, 2018.

Source:WIPO, Statistics Database, 2018.

In the Top500 list of the world's fastest supercomputers in 2017, China not only has the world's fastest supercomputer, it has now passed the US as the country with the most supercomputers.

25,000 km in operation, 66% of the world total

High speed railway system

III. Cooperation in STI for Digital Economy between China and Brazil

2018/11/23

• The Brazil-China High-level Coordination and Cooperation Committee

– Science, Technology and Innovation Sub-Committee

– Industry and Information Technology Sub-Committee

2018/11/23

CHINA and BRAZIL Joint Action Plan 2015-2021◼ Article 12 - Science, Technology and Innovation

2. The two sides agreed as priority areas of cooperation: renewable energies; bioenergy and biofuels; new materials and nanotechnology; agrarian sciences; climate change; bamboo and rattan technologies, space weather; creative economy and creative industries; innovation; smart cities; information and communication technologies (ICTs) and cloud computing; and biomedicine and health. Both sides agreed to strengthen bilateral cooperation on advanced technology transfer and joint research and development (R&D) projects and initiatives as well as strategic planning, foresight and governance of innovation processes.

2018/11/23

(f) Digital & Smart Cities– Cooperation Partners: Brazilian State Government of Rio Grande do Sul (RS) & "Huawei do Brasil

Telecomunicações LTDA" (HW), Brazilian State Government of Tocantins (TO) & ZTE Corporation (ZTE), among others to be defined on the occasion of High Level Dialogues and/or S,T&I Subcommittee Meetings.

– Initial actions and projects: Implement the strategic and technical cooperation agreement between Huawei and the Government of RS; help develop the science, technology and innovation system of RS with a special view to develop smart cities within the State; implement the "Digital City project" agreement signed by ZTE and the Government of the State of Tocantins.

(g) Cloud Computing– Cooperation Partners: Ministry of Science, Technology and Innovation (MCTI) & "Huawei do Brasil

Telecomunicações LTDA" (HW), among others to be defined on the occasion of High Level Dialogues and/or S,T&I Subcommittee Meetings.

– Initial actions and projects: Implement the cooperation MoU about Cloud Computing and Big Data between Huawei and MCTI, develop Cloud Computing technology in Brazil, including the use for e-education, e-health and e-Government; foster mobility and assign research fellowships in the ICT area.

2018/11/23

• The 5th Session of the Industrial and Information Industry Sub-Committee (2017/06/22))– Exchanged views on the industrial development

strategies of Brazil Industrial 4.0 and China Manufacturing 2025.

2018/11/23

• Memorandum of cooperation in the field of information and communication(2018/08/28)– strengthen exchanges and cooperation between next-

generation mobile communications, information and communication infrastructure, cloud computing, big data, Internet of Things and other new technologies and new business areas.

2018/11/23

• STI Collaboration for Digital Economy

– Strengthen exchanges in think tanks and share experiences in digital economic development

– Promote the exchange of scientific and technological personnel and cultivate future leaders

– Enhance cooperative R&D platforms and improve innovation capability of digital industry

– Promote cooperation in science and technology parks and develop digital economic clusters