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The Innovation-Driven Development Strategy

(On Governance)

Updated:2019-04-16 |

The Innovation-Driven Development Strategy

In November 2012, at its 18th National Congress, the CPC made a series of important decisions on the implementation of the innovation-driven development strategy. Innovation has always offered important impetus to a country’s progress.

China is a large developing country that is pushing to transform its development model and economic structure, and pursuing the innovation-driven development strategy. For this purpose, the 13th Five-year Plan, released in March 2016, contains extensive measures for its implementation, and the CPC Central Committee and the State Council issued in May 2016 the Outlines on National Strategy for Innovation Driven Development. The report to the 19th CPC National Congress held in 2017 made innovation-driven development strategy one of the seven strategies for completing the building of a moderately prosperous society in all respects.

China’s innovation-driven development strategy aims to encourage 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 free our minds and accelerate the reform of the science and technology system so that we can get rid of 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 a 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.