China's research index grows with NEV innovation and expanding markets

China's tech research index continued growing in the first two months, focusing on new-energy vehicle and NEV innovation.

Shanghai was one of the top three regions nationwide with the highest scores, research firms said.

China's research development will rebound to a higher level in the second half, with economic growth after the pandemic, in sectors like NEV and artificial intelligence, said researchers including PatSnap, a patent and research analysis firm.

The China Index of Research and Development, or CIRD, an index measuring research activity and innovation development, continued to grow to reach 105.9 in January and February. Shanghai, along with Beijing and the Guangdong-Hong Kong-Macau Greater Bay Area, are the top three regions on the CIRD index nationwide. Shanghai's index reached 110.5, higher than the nationwide level, according to PatSnap.

The seven most active industries were led by NEV with 120.1, along with new energy, artificial intelligence, bio-medicine, semiconductor, telecommunication and new materials, according to PatSnap.

By 2025, tech giants will own a part of the vehicle's operating system for 95 percent of new cars on the road, while over half of NEVs sold globally will be Chinese-branded models by 2026, according to researcher firm Gartner.

Chinese firms are "well-situated" to take advantage of the growth with access to key minerals and battery manufacturing capacity, Gartner said.

Firms like Nio and Xiaopeng have become competitive brands, while tech firms like Huawei and Xiaomi are expanding in the smart automotive system or even car-making sectors.

With the impact of external factors fading, the R&D investment and activity are reviving in the coming months, with CIRD index to "go higher" in 2023, said PatSnap.