China’s goal of self-reliance will certainly rely on innovation. Right now, the second-largest economy sits firmly atop the list of the World Intellectual Property Organization (WIPO) when it comes to innovation on a global scale.
The WIPO noted that East Asia, in particular, is the residence to six out of 10 global science and technology clusters. On a country-by-country basis, China leads in that category.
“According to the 2023 edition of the WIPO’s Global Innovation Index, China has 24 sci-tech clusters, up from 21 last year and making China the country with the greatest number of such clusters,” a XinhuaNet article said.
Investment capital poured into research and development has certainly helped China’s case, as ideas can’t become reality without an influx of dollars (public and private). Given this innovation growth, exchange traded fund (ETF) investors may want to give the KraneShares China Innovation ETF (KGRO) a closer look.
“China’s remarkable achievements in innovation and output mirror the emergence of new global growth engines, which are inseparable from the great importance the Chinese government attaches to IP strategy and the continuous improvement of the country’s IP policies,” the article added, quoting the words of WIPO Deputy Director General Wang Binying.