It has been suggested that over the last decade US government policies and legal rulings have pushed US investment money overseas to China. A huge portion of the US economy relies on intellectual property industries which support more than 45 million jobs and account for up to $6 trillion (which is equivalent to 38% of the US GDP). Decreased patent incentives and changes in US patent law have resulted in companies being less likely to invest in biotech and software innovations in the US.
China on the other hand seems to be changing its reputation as an economy full of copycat innovations to a world-class leader in cutting-edge technology. China’s R&D spending relative to its GDP has more than doubled in the last 15 years.