Companies invested 167.38 billion yuan, government-run research institutions spent 51.31 billion yuan, and universities laid out 24.23 billion yuan, the bureau, in conjunction with the Ministry of Science and Technology and the Ministry of Finance, said in a statement.

Total spending on R&D was 1.34 percent of China's gross domestic product, the statement said. In comparison, the ratio of R&D expenditures to GDP in the United States was 2.68 percent in 2004.

The ratio is an indicator that demonstrates a nation's scientific development scale and partly reflects its potential for economic growth.

China estimated earlier that the ratio could reach at least 2.5 percent by 2020.

"The growth in R&D investment is steady and rapid," yesterday's statement said.

Allocations for R&D by the central and local governments rose 21.9 percent in 2005 over the year before to 133.49 billion yuan, representing 3.9 percent of the country's total fiscal spending.

In regional breakdown, Beijing topped the list by spending 38.21 billion yuan, followed by Jiangsu and Guangdong provinces.

Shanghai came in fourth with total spending of 20.84 billion yuan, an increase of 21.8 percent from a year earlier.

The Shanghai Statistics Bureau reported the number of local foreign-invested R&D centers reached 170 in 2005.

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