Deloitte released a report in Hong Kong stating that the Greater Bay Area spent about 28.9 billion yuan (US$4.2 billion) on basic research in 2024, accounting for just 5.67 per cent of total R&D spending, below China's national average of 6.9 per cent and far behind the US's 14.5 per cent and South Korea's nearly 15 per cent. Despite strong tech potential, the southern China cluster lags in basic research and original innovation, with talent gaps adding to challenges.
A report by consulting firm Deloitte, released in Hong Kong on Thursday, shows that the cluster of cities in southern China, including Shenzhen, spent about 28.9 billion yuan (US$4.2 billion) on basic research in 2024, accounting for just 5.67 per cent of total research and development (R&D) spending. That compared with a national average of 6.9 per cent, and significantly higher levels of 14.5 per cent in the US and nearly 15 per cent in South Korea, according to the report. The Guangdong-Hong Kong-Macau Greater Bay Area (GBA) – comprising Hong Kong, Macau and nine mainland China cities – has emerged as one of the country’s most important technology hubs. Anchored by Shenzhen – often dubbed China’s “Silicon Valley” – the region is home to leading firms such as Huawei Technologies, Tencent Holdings, DJI and BYD, forming a dense ecosystem spanning hardware, software and advanced manufacturing. Deloitte says the southern China cluster lags in basic research and original innovation, with talent gaps adding to challenges.
