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The Innovation-driven Development Strategy

(National Governance)

Updated:2018-12-03 |

The Innovation-driven Development Strategy

On November 18, 2012 at its 18th National Congress, the CPC made a series of important decisions on the implementation of the innovation-driven development strategy. As innovation has always offered important impetus to the progress of a country and a nation, an innovation-driven development strategy has a significant bearing on the future of the Chinese nation.

China is a large developing country which is pushing to transform its development model and economic structure, and therefore it must make sure that the innovation-driven development strategy is implemented properly and successfully. For this purpose, the 13th Five-year Plan contains extensive measures for its implementation, and the CPC Central Committee and the State Council issued in May 2015 “Outlines on National Strategy for Innovation Driven Development”. China’s innovation-driven development strategy aims at encouraging innovation in all areas, led by scientific and technological innovation.

Innovation should be demand-driven in response to the needs of industrialization, and businesses are major players in delivering innovation. The market should play the decisive role in allocating resources, and the full potential of our socialist system should be tapped. The strategy also seeks to enhance the contribution of scientific and technological advances to economic growth, which will serve as a new growth driver and help sustain sound economic development. As we implement the innovation-driven development strategy, we must open our minds and accelerate the reform of the science and technology system so that we can free ourselves from the stereotyped thinking and institutional barriers that hinder innovation-driven development.

The strategy must be implemented in a systematic manner involving efforts in different areas. The main measures to be taken to this end include creating a favorable environment for fair competition with a market-based mechanism that encourages technological innovation. It is also essential to promote financial innovation to provide more incentives for innovative uses of technology.

Another area of focus is building more efficient scientific research system, and implementing an effective talent management mechanism for training and attracting competent personnel. A highly-integrated approach is necessary to ensure an open and innovation-friendly climate.

China seeks to have in place by 2020 an institutional, legal and policy framework for innovation-driven development so as to provide a solid basis to put China on track to become one of the world’s most innovative countries.