China’s R&D intensity reached 1.42% of GDP in 2006, thanks to a rapid, decade-long increase in R&D expenditure. The government intends to have R&D intensity reach 2% by 2010. Owing to the market-oriented reforms of the R&D system since 1985, industry’s share of GERD rose to 69% in 2006, a similar level to that in Finland, Germany and Sweden. China has the world’s second largest stock of human resources for science and technology (HRST), just after the United States and ahead of Japan. Its share of university graduates with degrees in science and engineering is 39.2%, almost twice that of the OECD average. On the other hand, the overall level of tertiary attainment is still quite low, even by developing country standards, and the number of researchers per 1 000 total employment is very low, at about one-tenth of the level of Finland, the world leader.