Innovation Economy Posts Strong Growth in Jan-Feb, Tax Data Show

China's scientific and technological innovation sector maintained strong growth momentum in the first two months of the year, characterized by a 16.1 percent year-on-year surge in high-tech industry sales revenue and accelerated digital-real integration, official tax data showed.

According to the State Taxation Administration, the country's innovation landscape presented multiple highlights during the January-February period. These positive indicators emerge as the country approved the outline of the 15th Five-Year Plan (2026-30) for national economic and social development last Thursday, which identifies a significant improvement in scientific and technological self-reliance and self-strengthening as a primary goal for future economic and social development.

Invoice data revealed a rapid expansion across innovation-driven industries. Sales revenue of the high-tech industry climbed 16.1 percent year-on-year, continuing a trend of rapid growth.

A detailed breakdown showed that the high-tech services sector was a standout performer, recording a 17.2 percent increase in sales revenue. Within this sector, services related to scientific and technological intermediation, as well as natural science research and experimental development, witnessed particularly robust growth of 25.6 percent and 17.4 percent, respectively.

Meanwhile, high-tech manufacturing sales revenue rose by 14.5 percent year-on-year. This growth was significantly driven by emerging strategic sectors such as the low-altitude economy, commercial aerospace and consumer electronics. Propelled by these engines, the manufacturing of aerospace equipment surged by 28.5 percent, while electronic and communication equipment manufacturing grew by 18.4 percent.

The flow of scientific and technological resource elements remained highly active. The scientific research and technical service industry, which serves as a key hub for integrating tech elements and value transformation, saw its sales revenue jump by 23.6 percent year-on-year.

Furthermore, industries that are intensive in intellectual property, specifically patents, also reported a solid sales revenue increase of 12.8 percent, underscoring the value of high-tech content.

The tax data also highlighted the rapid advancement of the integration between the digital and real economies. Enterprises increased their spending on procuring digital technologies by 10.8 percent year-on-year, a clear reflection of an industrial digital upgrade. Notably, manufacturing enterprises were proactive in this transition, with their procurement of digital technology growing by 16 percent.

On the supply side, sales revenue of core digital economy industries rose by 10.8 percent, indicating the rapid industrialization of digital technologies. Within this sector, digital product manufacturing and digital technology application industries grew by 13.3 percent and 11.9 percent, respectively.

Commenting on the significance of these figures during the opening year of the 15th Five-Year Plan period, Chen Binkai, vice-president of the Central University of Finance and Economics, noted that China's tech innovation industry is exhibiting a holistic trend characterized by greater industrial vitality, smoother flow of resource elements and deeper integration between digital technologies and the real economy.

"This demonstrates a continuously strengthening internal drive for innovation-led development," Chen said. He emphasized that this momentum not only solidifies the industrial foundation for China's sci-tech self-reliance, but also effectively activates the development momentum of "new quality productive forces".

Ultimately, the data further underscore the vital supporting role of technological innovation in driving the country's high-quality development, Chen added.