Both the 863 & 973 programs are funded and managed by
the MOST. At the local level, provincial and municipal
governments are also actively involved in funding R&D. In
the past 10 years local Chinese governments’ S&T appropriation
has steadily increased (Figure 3). In 2006, Shanghai
topped the nation in R&D appropriation, with a total
investment of 9.5 billion yuan ($1.5 billion). This accounted
for 5.2% of Shanghai’s GDP in the same year.