Deloitte Report Highlights Greater Bay Area's Basic Research Deficit Despite Tech Hub Status

A Deloitte report released in Hong Kong on Thursday indicates that the Greater Bay Area (GBA) in southern China, while recognized as a major technology center, lags behind peers in basic research and original innovation. The consulting firm's analysis reveals that the region, which includes Hong Kong, Macau, and nine mainland cities such as Shenzhen, allocated approximately 28.9 billion yuan (US$4.2 billion) to basic research in 2024. This expenditure represents only 5.67% of total research and development (R&D) spending, below China's national average of 6.9% and significantly lower than the 14.5% in the United States and nearly 15% in South Korea. Deloitte attributes these challenges partly to talent shortages. Despite this, the GBA has developed into a critical technology hub, anchored by Shenzhen—often compared to Silicon Valley—and hosting prominent companies like Huawei Technologies, Tencent Holdings, DJI, and BYD. The region's ecosystem encompasses hardware, software, and advanced manufacturing, underscoring its strong technological potential even as it faces innovation gaps.