National Innovation-driven Development Strategy Outlines

National Innovation-driven Development Strategy Outlines
National Innovation-driven Development Strategy Outlines

May 19, 2016

The Eighteenth National Congress of the CPC proposed the implementation of the Innovation-driven Development Strategy which highlights the role of scientific and technological innovation serving as the strategic support for increasing social productivity and overall national strength and that it must be placed at the core of the national development plan. This is a national key development strategy developed by the Central Government at the new development stage based on the overall situation, and it is globally oriented, focuses on the key issues and aims to drive the whole development, . These outlines are hereby formulated to accelerate the implementation of this strategy.

I. Strategic Background
Innovation-driven development means that innovation becomes the primary impetus for leading the development, and scientific and technological innovation combines with institutional innovation, administration innovation, commercial mode innovation, format innovation and cultural innovation, facilitating the transition of development mode to on-going accumulation of knowledge, technological progress and improvement of labour force quality, and promoting the economy to progress to the stage of more advanced form, more delicate division of labour and more reasonable structure.
Innovation-driven development is closely related to the fate of the nation. Scientific and technological innovation capacity serves as the core support for national strength. Strong innovation prospers the national fate, whilst weak innovation brings imperils the national fate. The important reason for China to lag behind and be vulnerable to attacks in the modern time is because we have missed all previous scientific and technological revolutions, which has resulted in weakness of science and technology and national strength. In order to realise the Chinese dream of the great rejuvenation of the Chinese nation, science and technology must be fully utilised as the revolutionary strength and powerful lever of the highest meaning.
Innovation-driven development is the trend of the world. The new global round of scientific and technological revolution, industrial renovation and military reform is rapidly evolving; scientific research has expanded into the depth on all scales, from microscopic to cosmoscopic; the mass technological revolution characterised with intelligence, green and ubiquity will result in a significant adjustment to the international division of industries; the constant emergence of disruptive technologies is reshaping the global competition pattern and changing the balance of national powers; innovation-driven development becomes a core strategy by which many countries pursue the competitive advantage. Our country is faced with the rare historical opportunity of catching up and leapfrogging, but is also faced with the stern challenge of a widened gap. Only by standing courageously ahead of the global scientific and technological innovation can the development initiative be won, which makes greater contribution to the progress of human civilisation.
Innovation-driven development is prescribed by the development situation. China's economic development steps into the new normal stage, with traditional drivers of growth weakening, the extensive growth pattern must be changed. We must rely on innovation-driven development to build a new development engine, foster a new growth point for economy, continuously increase the quality and efficiency of the economic development of our country, open up new space for our country's development, and realise the "dual objectives" of maintaining a medium-to-high rate of economic growth and moving forward the industry to a medium-to-high level.
Currently, China's innovation-driven development already set foundations for power-up and acceleration. After many years of efforts, scientific and technological development is stepping into the period of upgrading quantitative increase into qualitative advancement, the system of scientific research becomes more and more complete, the talent team is constantly expanding, and the capacity of independent innovation in science, technology, construction and industries is growing rapidly. Economic transformation and upgrading, continuous improvement of the livelihood of the people and modernisation of the national defence have raised huge demand for innovation. Enormous market scope, complete industrial system and diversified consumption demand, combined with the increase of innovation efficiency in the internet era, provide an extensive space for innovation. The socialist regime with Chinese characteristics can effectively combine the advantages of concentration of resources to accomplish large undertakings and market resource allocation, which provides a fundamental safeguard for the achievement of innovation-driven development.
It should also be noted that many industries in China are still at the medium-to-low end of the global value chain, some crucial technologies are controlled by other countries, the developed countries still have a significant advantage in scientific frontiers and high-technology fields, and our country's scientific and technological reserves for supporting industrial upgrade and leading future development is urgently needed. We urgently need to establish and improve system and mechanisms applicable to innovation-driven development; enterprises have insufficient innovation impetus; the innovation system as a whole has a low efficiency; economic development still has not been truly directed to the track of reliance on innovation. The scientific and technological talent team is large but not strong, with insufficient lead talents and highly skilled talents, and there is an urgent need to build and expand a group of innovative entrepreneurs. A market environment and social atmosphere of encouraging innovation still needs to be further fostered and optimised.
At the key stage of our country's accelerated advancement of socialist modernisation and realisation of the Two Century Goals and the Chinese dream of the great rejuvenation of the Chinese nation, the principle that stressing innovation is equal to stressing development and pursuing innovation is equal to pursuing the future must always be adhered to, so that innovation will become the national will and the common action of the whole society, making a new development path from strength in talent and science and technology to strength in industries, economy and the nation, and creating a new growth cycle for our country in the future ten odd years or an even longer period.

II. Strategic Requirements
1. Guiding principles
Follow the guidance of Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development, put into practice the guiding principles from General Secretary Xi Jinping's major policy addresses, work in accordance with the Four-Pronged Comprehensives" strategy, follow a path of making innovation with Chinese features , emancipate the mind and remain open and inclusive, place innovation-driven development as the nation's priority strategy, promote an overall innovation centred on scientific and technological innovation, stimulate innovation potential by systemic and institutional reform, supporting the high-level construction of innovative country by a highly efficient innovation system, promote a fundamental transformation of economic and social development impetus, and provide a strong boost for the realisation of the Chinese dream of the great rejuvenation of the Chinese nation.
2. Fundamental principles
Focus closely on development. Adhere to the problem-oriented development, face the global scientific and technological frontiers, face the major national demands, face the main battlefield of the national economy, set the main direction of innovation development of our country, achieve a breakthrough in key sectors as soon as possible, and make efforts to form more competitive advantages.
Deepen the reform. Adhere to the synchronous power-up of reform in scientific and technological system and reform in economic and social fields, strengthen the connection between science and economy, follow the laws of socialist market economy and laws of scientific and technological innovation, get rid of all obstacles restricting innovative ideas and institutional barriers, and build a good environment to support innovation-driven development.
Strengthen incentives. Follow the idea of innovation-driven essentially being talent-driven, implement the people-oriented idea, respect the value of innovation and creation, inspire enthusiasm and creativity of all kinds of talents, and speed up the gathering of a team of innovative talents with a large scope, a reasonable structure and fine qualities.
Expand the opening-up. Adhere to a global vision for planning and promoting innovation, utilise the global innovation resources to the greatest extent, fully enhance our country's position in the global pattern of innovation, and strive to become a leader in a number of important areas and a participant in the making of important rules.
3. Strategic objectives
Three step strategic target is proposed.
The first step, by 2020 China will become an innovative country, fundamentally develop the national innovation system with Chinese characteristics, and provide strong support to achieve the objective of building a moderately prosperous society.
- Initial formation of the innovative pattern of economy. Several key industries will enter the medium-to-high end of the global value chain, and a number of innovative enterprises and industrial clusters with international competitiveness will be formed. The contribution rate of scientific and technological progress will exceed 60%, and the added value of knowledge-intensive service industry will account for 20% of GDP.
- Significant increase of independent innovation capacity. A pattern of innovation facing the future development, meeting the scientific and technological revolution and promoting the innovation layout of industrial reform will be established, breaking a series of major bottlenecks restricting economic and social development and national security, making a preliminary reverse of the passive situation where key and core technologies are controlled by other countries for a long time, forming a unique advantage in several strategically important areas, and providing strategic reserves and expanding strategic space for the national prosperity and development. The proportion of research and development (R&D) expenditures in GDP will reach 2.5%.
- Collaboration and efficiency of innovation system. Science and technology and economy will integrate more smoothly, innovation players will be full of vitality, the innovation chain will be organically joined, innovation governance will be more scientific, and innovation efficiency will greatly increase.
- More optimisation of innovation environment. Policies and regulations incentivising innovation will be more complete, protection of intellectual property will be stricter, and a value orientation and cultural atmosphere of advocating, undertaking and incentivising innovation and entrepreneurship will be established.
The second step, by 2010, China will become the frontline of innovation-oriented country, and the driving force of development will fundamentally change, the level of economic and social development and international competitiveness will increase dramatically laying a solid foundation for building an economic power and a common well-off society.
- The main industries will enter into the medium-to-high end of the global value chain. China will continuously create new technologies and new products, new models and new formats, new demands and new markets, and achieve more sustainable development, employment with better quality, higher income levels and a life of higher quality.
- Reverse the overall situation where scientific and technological innovation is mainly about keeping track. China will proceed from concurrency to leadership in several strategic areas, form a Chinese school leading the global academic development, and produce original achievements that have a major impact on the global scientific and technological development and progress of human civilisation. The main bottlenecks that restrict the national defence science and technology will be overcome. The proportion of research and development (R&D) expenditures in GDP will reach 2.8%.
- The national innovation system will be more complete. Science and technology and economy will integrate in depth and promote each other.
- The cultural atmosphere for innovation will become optimized, the safeguard under the rule of law will be powerful, and the whole society will form a lively situation where creativity is unleashed one after another and source of innovation continues to surge.
The third step, by 2050, China will build the world's scientific and technological innovation powerhouse and become the world's leading scientific centre and innovation high ground, providing strong support for building China into a prosperous, democratic, civilised and harmonious socialist modernised country and for realising the Chinese dream of the great rejuvenation of the Chinese nation.
- Science and technology and talent will become the most important strategic resources for national strength, and innovation will become the core element of policy making and system arrangement.
- The increase of labour productivity and social productivity will rely mainly on scientific and technological progress and comprehensive innovation, with high quality of economic development, low consumption of energy resources and strong core competitiveness of industries.
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