For the first time, China will spend more on research and development (R&D) than Japan. According to OECD projections, China will have spent USD 136 billion on R&D in 2006. The greatest investor is stillÂ the US, predicted to spend this year USD 330 billion on R&D. Chinaâ€™s R&D expenses have doubled since 1995, and now amount to 1.2 % of its GDP.
The OECD press release is available here.