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China's "Intangible Investment" Continues to Underperform

China’s innovation competitiveness is a hotly debated question, one that is now hugely amplified by the US-China trade conflict and the specter of possible technology restrictions impacting operating conditions for MNCs both in China and internationally. This report assesses China’s intangible investment performance, a proxy for innovation spending at the aggregate economy level. The data show that China is investing significantly above average in intangible assets for its stage of economic development. But – China’s intangible investing is not yielding the expected returns on investment that other countries typically achieve with similar investments.

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