“Innovation-driven development strategy”

China’s innovation-driven development strategy aims at encouraging innovation in all areas, particularly scientific and technological innovation. Innovation should be demanddriven in response to the needs of industrialization. Businesses are major players in delivering innovation, and the market should play the decisive role in allocating resources. The full potential of our socialist system should be explored. The strategy seeks to enhance the contribution of scientific and technological advances to economic growth, which would serve as a new growth driver and help sustain sound economic development.

The main measures to be taken to this end include creating a favorable environment for fair competition and 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, 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.