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Introduction to the Innovation System of China December 6th, 2013 XU Jianguo, Director-General, Office for Innovation System, Ministry of Science and Technology, P.R.China OUTLINE 1. Background 2. Main Achievement 3. Key Deployment 1. Background • Global economy under profound adjustment: EU sovereign debt crisis, capital flight from BRICS countries (in 2012, the developed economies grew by 1.3%, and the emerging economies 5.3%) • A new Sci-tech revolution and industrial transformation represented by new energy, new material, information, biology, nano tech are under incubation at a faster speed • Common choice: S&T innovation, real economy and quality employment – US: go for innovative economy and reindustrialization, invest 3% of GDP in R&D – EU: Horizon 2020 Program, investment totaled €80 billion. – Japan: S&T comprehensive innovation strategy, prioritize economy, deliver social security and rich life to people, explore the unknown 3 1. Background China's Strategic Choice--Innovation Driven Development • In Jan. 2006, China published The Outlines on Medium and Long Term Planning of Scientific and Technological Development (2006-2020), which introduced the policy on indigenous innovation and the goal toward an innovation-oriented country • In July 2012, the national S&T Innovation Congress introduced the No.6 DocOpinions of the CPC Central Committee and State Council on S&T System Reform and National Innovation System Development, focusing on improving the innovation capacity of enterprises and facilitating the integration of S&T and economy. • In Nov. 2012, the 18th CPC National Congress introduced the strategy of innovation driven development To implement the strategy of innovation driven development necessitates the development of the national innovation system with Chinese features. 4 2. Main Achievement Indigenous Innovation Capacity Has Notably Improved. Social R&D expenditure grows by over 20% annually for years. In 2012, the expense reached 1.02984 trillion RMB (1.98% of GDP) and world No.3 • R&D personnel reached 3.2 million man-year and world No.1 • The number of scientific articles included in SCI stood at world No.2 for consecutive four years • Granted patent for invention reached 217,000 copies and world No.3 • Technology turnover increased by over 20% annually, reaching 640 billion RMB in 2012 • The aggregate output value of the high-tech industry has registered sustained and fast growth. 5 2. Main Achievement Major Achievements in S&T Innovation Ø16 Major Special Programs ØNational Science and Technology Infrastructure Program (key technology R&D) ØHigh-tech R&D Program ØNational Basic Research Program ØNational Natural Science Foundation ØSpark Program ØTorch Program ØAchievement Transformation Fund Cutting-edge technologies including Shenzhou9 Spacecraft docking with Tiangong-1 target module and Jiaolong manned submersible reaching 7000 m deep. Progress made in basic research on Quantum Entanglement and Anomalous Quantum Hall Effect Tackled key technologies including hybrid rice, superconductivity power transformation, 65-40 nano etcher, TD-LTE-based broadband multimedia, and the 3000-metre semisubmersible drilling platform. Industry grows stronger and more competitive and the economy more technology based. 6 2. Main Achievement Innovation Capacity Keeps Growing. • In 2013, Chinese mainland ranks as the 21st most competitive economy in the world (Hong Kong, China, 3rd). A developing China boosts the competitiveness in Asia. (IMD World Competitiveness Scoreboard 2013 , International Institute for Management Development Business School in Lausanne) • National Innovation Index ranking rose from 38th in 2000 to 20th in 2011. (National Innovation Index Report 2012, Chinese Academy of Science and Technology for Development) 7 Problems • The main players need to be more innovative: especially enterprises • The industry lacks core technologies:key parts, new materials and equipment are export-depended (95% of digital controlled system, and 85% of integrated circuit) • Innovation elements cannot flow freely: including talents, technologies, etc. • Synergy and openness needed: need more synergy innovation and going global further We must deepen reform and rely on enterprises to improve innovation capacity. 8 3. Key Deployment Center on implementing the No.6 Doc. • Strengthen leadership and organization: The State Council established the Leading Group of National SCI-TECH System Reform and Innovation System, headed by vice premier LIU Yandong • Clarify responsibility to fulfill tasks: Compile and implement the Work Plan for the No.6 Doc, which introduced 62 tasks and 242 reform measures. • Make steady progress while focusing on priorities: Identified 20 key tasks for reform • Related departments has published 105 docs on reform policies. • CPC committees and governments of each province, autonomous regions and municipality directly under the central gov have all introduced policies and docs accordingly. 9 Organization Leading Group of National SCI-TECH System Reform and Innovation System Leading Group Office ( in MoST) Minis try of Finan ce GOV Policie s and laws National Develop ment and Reform Commiss ion M o S T Enterprises (large and key enterprises, Medium, small and micro ones) research institutes under enterprises Minis try of Educ ation Ministry o f Industry a n d Informat i o n Technolo gy Militar y and civilian integrat ion industryuniversity -research cooperati on Univer sities discipline & talent development Chines e Acade my of Scienc es Chinese Acade my of Engine ering know-how innovation tech transfer (26 Ministries and Institutes) Research institutes modern system of research institutes Intermedia ry (platforms, incubators, tech transfer institutes) 10 Increase the Tech Innovation Capacity of Enterprises ―Grow innovation-oriented enterprises (support enterprise research institutions and consolidate the national S&T platform, etc) ―Close collaboration among enterprises, universities and research institutes (support the strategic alliance for industrial technological innovation and synergy innovation center, etc) ―Channel innovation resources to enterprises ―Cultivate the policy atmosphere for enterprise innovation 11 Set up the Mechanism for Synergy Innovation • Deepen reform on university research system (program on enhancing university innovation capacity; combine science and education, and efforts of enterprises, universities, and research institutes) • Develop the regional innovation system with local features (pilots of innovation-oriented provinces and municipalities, etc) • Improve the military-civilian synergy innovation mechanism (Enhance the arrangement and coordination for planning, plans, programs) 12 Deepen Reform on S&T Management • The fundamental system: the scientific report system and the innovation survey system, etc. • S&T project management reform: Set up and improve the mechanism where decision making, implementation and evaluation go independently and supervise each other. Improve the macro layout and recreate project management process. Adopt online video review, the legal person responsibility system and project executive system, etc. • S&T budget supervision: Set an appropriate propotion of competitive fund against stable fund, improve the mechanism of compensation on overhead cost, improve the flexibility of budget and discretion of users, impose more strict rules on financing, put in place the accountability system, etc. • S&T resource sharing: open large equipment and facilities, adopt the mechanism of performance assessment and incentives 13 Reform on S&T Evaluation and Awarding • Evaluation and awarding oriented toward innovation quality and practical contribution • Classified evaluation of various types of research: basic research ( peer evaluation), applied research (evaluation by third party), industrialization (market evaluation) • Rewarding system featuring public nomination, scientific deliberation and discussion, practical test and public trust; control the number of governmental awards, standardize non-gov. awards, explore science awarding through peer nomination and peer expert evaluation, etc. • More support to outstanding and young talents with extraordinary contribution. 14 Improve S&T Policies, Laws and Regulations • Implement the established policies (additional deduction of enterprise R&D expenses, tax incentives for High-tech enterprises,and acquisition and subscription of innovative products, etc) • Revise the Law of the PRC on Promoting the Transformation of Scientific and Technological Achievements (technological transfer system of universities and research institutes, IPR application and promotion, share and option incentive, income distribution, public service, etc) • Enhance integration of S&T and finance (Sci-tech credit, financial leasing, venture capital investment, Sci-tech insurance, special support to SME and micro businesses) 15 Thank you!