Hcss report

46
STRATEGIC MONITOR 2014
Economic Indicators
FIGURE 2.26: NET FDI OUTFLOWS IN CHINA AND RUSSIA (1980-2012), IN % GDP. SOURCE: UNITED NATIONS
117
Foreign Direct Investments (FDI) reflect each country’s ability to aggregate 
investments from abroad, and its capacity to invest from its own economy to the rest 
of the world, thereby adding to its power base. Figure 2.26 provides some indication 
of the ‘net’ investment flows for China and Russia. We note that both China and – 
even to a larger extent – Russia have been very assertive investors abroad – confirming 
the assertiveness hypothesis as defined in this chapter.
FIGURE 2.27: PATENT APPLICATION FILES – CHINA AND RUSSIA (1980-2011) FILED UNDER THE PATENT CO-OPERATION 
TREATY (PCT). SOURCE: OECD
118
Whereas FDI flows say something about the relative financial ‘power’ of a country 
(which – as in the case of Russia – may also be related to its natural resource 
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
2004
2006
2008
2010
2012
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
% GDP
China
Russia
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
2004
2006
2008
2010
China
Russia

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HCSS REPORT
47
endowments), they do not say much about the innovative forces behind it. As a rough 
indicator of the latter, Figure 2.27 shows the number of patents that have been filed. 
What is striking is that whereas Russia has performed poorly, China has not only 
become the world’s main manufacturing hub, but also an impressive innovation 
powerhouse.