China’s manned submersible, the Jiaolong, leaves the boat to dive in the Pacific Ocean for the 38th oceanic expedition.(XINHUA)

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The word innovation appeared more than 1,000 times in the public speeches and news reports of President Xi Jinping. His argument for innovation touches upon science and technology, talent, literature, the arts, and military, extending beyond as far as theories, mechanisms and practices. At the fifth plenum of the 18th CPC Central Committee, the Chinese government called for a future development pattern that is innovative, coordinated, green, open and shared in which innovation is the most important concept. The 19th CPC National Congress proposed promoting innovation across the country as socialism with Chinese characteristics had entered a new era.

Innovative countries generally feature three models. Some innovators, like the United States, research cutting-edge technologies and create new economic models with innovation and entrepreneurship. In the second model, countries develop modern technologies based on existing sectors and apply them to corporate development so that the sectors can become more competitive. Economies like Japan and Germany fall into this category. In addition, some other economies, such as Russia and Ukraine, use military knowledge to benefit their society through civil-military integration.

China is a country with a large population and extensive territory. Innovation-intensive entrepreneurship should be promoted in the following aspects.

Venture investment and other forms of fiscal support should drive innovation and entrepreneurship related to high-profile national technology. Governments should encourage the commercial application of patent inventions and reform the relevant mechanisms. At the same time, companies dedicated to creating new jobs require fiscal support from government agencies so that the contradiction between demographic dividend and employment can be tackled. Furthermore, it is necessary to attract international R&D funding to high-profile technology and make these industries attractive to global professionals. In this way, the country has the initiative to produce advanced technological achievements.

Efforts are needed to build an innovative China, which is of strategic significance. Economic theories and talent training should be innovated while keeping consistent with the requirements of the plan. A modern commercial system should be adapted to serve the strategy. The great achievements of the domestic economy since the reform and opening-up policies were implemented four decades ago can be attributed to the establishment of a commerical system that matched the process of industrialization. At present, the commercial system needs to parallel the innovation-driven sectors. Finally, the capital market should undergo new changes by injecting capital to the innovative fields. That is the most crucial task for the capital market to serve the real economy.

 

The article was edited and translated from Qiushi website.

(edited by MA YUHONG)