High-quality development is the overarching task of building a modern socialist country in all respects. The 20th CPC National Congress stressed accelerating implementation of the innovation-driven development strategy and promoting high-quality development, which has sounded a clarion call to implement innovation-driven high-quality development in the new era and on our new journey.

High-quality development

Compared with traditional high-speed growth, the conditions for production factors and the model for high-quality development have fundamentally transformed, which requires us to enhance total factor productivity. On the new journey to build a modern socialist country in all respects, emphasizing innovation-driven high-quality development is of great significance.

First, innovation-driven development is an inherent requirement when implementing the new development philosophy accurately and comprehensively. Second, innovation-driven development is the key factor for realizing the second centenary goal. Third, innovation-driven development is an important foundation for securing a commanding height in the new round of sci-tech and industrial revolution. 

In the past decade, China’s innovation-driven development achieved remarkable results in practice. China’s rank increased in the Global Innovation Index from 34th in 2012 to 11th in 2022, marking the country’s progression in joining the ranks of the world’s most innovative countries.

New innovation advantages

Firstly, we should improve the national sci-tech innovation system. The construction of international and regional sci-tech innovation centers should be accelerated. Sci-tech innovation systems and mechanisms, an investment system and a result assessment system should be gradually reformed and improved. Intellectual property rights protection should be enhanced and an innovation culture should be cultivated.

Secondly, the principal status should be strengthened for enterprises engaged in sci-tech innovation. Through incentivization such as share option schemes, we can activate and release innovative personnel’s motivation and vitality to innovate. The leading and supporting role of key sci-tech enterprises should be brought to the forefront, to promote the integrated innovation within leading enterprises and small and medium enterprises (SMEs) and cultivate a good environment for sci-tech SMEs to grow. Cooperation should be deepened between enterprises and scientific research institutions as sci-tech innovation centered on industrial development, transformation, and upgrade is promoted, to realize the deep integration of innovation chains, industrial chains, capital chains and talent chains. 

Thirdly, the deeply integrated mechanism of industry, universities, and research institutions directed by enterprises should be fostered, to boost the commercialization of scientific and research findings and enhance industrialization levels. First, enterprises should be encouraged to develop platforms for commercialization of scientific and research findings cooperatively with universities and research institutions, to promote scientific achievements to enter the market and realize industrialization. Second, it is time to develop a technology trading market with unimpeded information channels, complete service functions, and orderly trading activities, to improve operational mechanisms for the technology trading market, and enhance its operational efficiency. Third, the technological evaluation mechanism should be improved, to encourage technology transfer institutions to develop more professional, market-oriented, and standardized development, which will enhance the industrialization level of technological achievements.

Fourthly, independent innovation should be enhanced, to accelerate breakthroughs in key core technologies. Leading enterprises should be encouraged to improve R&D in basic research and key core technologies and to accelerate the building of a new system that mobilizes resources nationwide to achieve breakthroughs in core technologies in key fields. Sci-Tech SMEs should be supported to cooperate with research institutions to carry out technological innovation activities, and build and improve a collaborative innovation mechanism with well-defined power and responsibility, shared achievements, and shared risks. 

Fifthly, an open innovation ecology with a globally competitive edge should be formed. International sci-tech communication and cooperation should be strengthened. Establishment of R&D institutions and key laboratories in China by multinational corporations should be promoted and they should be encouraged to form innovation consortiums with Chinese enterprises, higher education institutions, and R&D institutions, to cooperate in R&D and promote open innovation. We should deeply integrate within international industrial chains and global innovation networks. Through collaborative innovation of upstream and downstream enterprises along global industrial chains, we should promote shared technological achievements, knowledge spillover and enhanced innovation abilities, to quickly attain higher levels of sci-tech self-reliance and self-development.

Du Chuanzhong is director of the Institute of Industrial Economics and a professor from the College of Economic and Social Development at Nankai University.