SCIO briefing on 'high-quality achievements during the 14th Five-Year Plan period': Fiscal reform and development

Economic Daily:

In the past two years, Chinese technology has been very popular, and a series of technological achievements have attracted attention. Can you introduce what measures the Ministry of Finance has taken in the past few years to support greater self-reliance and strength in science and technology, and to better transform technological achievements into productivity? Thank you.

Lan Fo'an:

I would like to invite Mr. Wang to answer this question.

Wang Dongwei:

Thank you for your question. Chinese modernization relies on the support of technological modernization, and achieving high-quality development depends on fostering new drivers through sci-tech innovation. The national finance coordinates the use of various policy instruments to vigorously promote greater self-reliance and strength in science and technology, and to promote the integrated development of sci-tech innovation and industrial innovation.

First, we "added fuel to the fire" in terms of funding input. During the 14th Five-Year Plan period, national fiscal expenditure on science and technology is projected to reach 5.5 trillion yuan, an increase of 34% over the 13th Five-Year Plan period. Funds are primarily directed towards basic research, applied basic research and national strategic science and technology tasks. Among them, cumulative investment in basic research will reach 730 billion yuan, with an average annual growth of 12.3%. Fiscal investment has driven rapid growth in R&D investment across society, with investment intensity increasing from 2.41% at the end of the 13th Five-Year Plan period to 2.68% in 2024. The scale of R&D investment remains the second largest in the world.

Second, we delegated power and loosened restrictions in the use of funds. In recent years, we have been exploring the management model of science and technology funding. The general direction is to adapt to the general laws of scientific and technological innovation, granting scientists a greater say in deciding on technology roadmaps, funding allocation, and resource deployment. For example, in basic research projects, we implemented a "contract system" where the project leader decides on the use of funds. At the same time, we have been continuously improving supervision methods, conducting performance evaluations, and enhancing the efficiency of science and technology funding expenditures.

Third, we built platforms and bridges for the transformation of technological achievements. The role of scientific and technological innovation and the value of scientific research achievements are ultimately reflected in real-world productivity. During the 14th Five-Year Plan period, we have continuously adjusted and improved relevant policies, granting researchers ownership or long-term use rights over their scientific and technological output to fully share the benefits of the transformation of scientific and technological achievements. We have innovated the government procurement system, using government-initiated demand to guide and support product innovation and promotion. We have also implemented the first (set) and the first batch of insurance compensation policies to promote the iteration and upgrading of innovative products. The implementation of these policies has greatly supported the faster transition of innovations from the laboratory, turning samples into products and forming industries.

Fourth, we empowered enterprises and reduced their burdens to strengthen their role as the main body of innovation. Whether it is the original innovation "from 0 to 1" or the industrial implementation "from 1 to 100," enterprises play an irreplaceable role. We have introduced a series of fiscal and tax policies to help enterprises reduce costs, expand applications and upgrade and transform. For example, since the 14th Five-Year Plan period, we have implemented fiscal reward and subsidy policies for innovative SMEs that use special and sophisticated technologies to produce novel and unique products, supporting the cultivation of 14,600 "little giant" enterprises. New tax and fee reductions for technological innovation and advanced manufacturing have cumulatively reached 3.6 trillion yuan. Government financing guarantees have cumulatively supported over 300,000 innovative SMEs in obtaining approximately 800 billion yuan in loans, with the average guarantee fee rate for guaranteed enterprises falling below 1%.

Next, we will continue to increase fiscal support, focus on improving the efficiency of technological investment, better implement the innovation-driven development strategy and accelerate the building of a scientifically and technologically nation. Thank you.