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The main objective of this Working Paper is to show a set of indicators on the knowledge-based economy for China, mainly compiled from databases within EAS, although data from databases maintained by other parts of the OECD are included as well. These indicators are put in context by comparison with data for the United States, Japan and the EU (or the G7 countries in case no EU totals are available) and data for some of the Asian neighbours of China (Korea, Singapore, Chinese Taipei and Hong Kong) where data for these countries were readily available. This document draws heavily on the Science, Technology and Industry Scoreboard, copying many of the indicators presented there and borrowing a substantial amount of contextual and methodological explanations. After listing the main outcomes of this study, the paper starts with a section on the economic structure of China and the other economies, followed by a set of trade indicators, showing the opening up of China's economy and the growing importance of trade in high-technology products. Two indicators of foreign investment in China are examined: foreign affiliates and foreign direct investment. Recognizing the importance of human resources to a knowledge-based economy, a range of human resources indicators is presented. Final sections present indicators on R&D (as one of the inputs to the innovation process), and patents (as one of the outputs). A statistical annex brings together a selection of tables of the main indicators shown in the document. OECD database information is also annexed. (A bibliography is included. Contains 11 footnotes, 60 figures, 5 boxes and 26 tables.)

This paper describes how the global talent pool is changing. The expansion of higher education in rapidly-developing G20 nations has reduced the share of tertiary graduates from Europe, Japan and the United States in the global talent pool. If current trends continue, China and India will account for 40% of all young people with a tertiary education in G20 and OECD (Organisation for Economic Cooperation and Development) countries by the year 2020, while the United States and European Union countries will account for just over a quarter. The strong demand for employees in "knowledge economy" fields suggests that the global labour market can continue to absorb the increased supply of highly-educated individuals.