Fiscal Policy and Institutional Renovation in Support of Innovative Country Building


I. Theoretical study, practical investigation, and reference from international experiences on innovative country buildingLiterature reviews on independent innovation and innovative country buildingInternational theoretical study on innovationTechnological innovation theory of J.A. Schumpter and Neo-SchumpterismInnovation theory of Schumpter's enterpriseTechnological innovation theory of Neo-Schumpeterian scholarsNeoclassical theory of economic development and technological innovationThe prerequisite and assumptions about market failureThe main research of technological innovation in the neoclassical schoolThe theory of a National Innovation SystemSource of theory on National Innovation System—List’s theory of stateThe basic context of the theoretical research of a National Innovation SystemThe theoretical basis of National Innovation SystemThe basic elements of a National Innovation SystemThe main function of a National Innovation SystemChina’s practice on National Innovation SystemDomestic research on independent innovation in science and technologyResearch on the connotation of independent innovationResearch on the characteristics of independent innovationResearch on how to enhance the capacity of independent innovationMain features of domestic research on independent innovationEmphasizing enterprises as the main body of independent innovationEmphasizing the autonomy of independent innovationIndependent innovation is a continuous process of accumulation and we should pay full attention to the creation of “innovation chain”Research inspirationNotesCharacteristics of an innovative country and index system of the performance of independent innovationCharacteristics of an innovative countryTake the promotion of science and technology and innovation as a national strategyTake enhancing the capability of independent innovation as the coreTake enhancing the enterprises’ capability of technological innovation as a prominent taskTake strengthening the building of innovative personnel as a key factorEstablish a correct concept of governance and improve the level of governanceImplementing major and special scientific and technological plans to comprehensively enhance the capability of independent innovationCreate a culture of innovation and enhance the motivation for innovationImprove scientific literacy of the entire people and create an innovative social foundationImprove national innovation system and build effective systemic guaranteeThe relationship between performance and capability of independent innovationPerformance evaluation indicators for independent innovationDetermination of weight of indicatorsOverview of weight determination methods and a brief evaluationAnalytic hierarchy processEntropy weight methodAnalytical hierarchy processThe principal component projection method by entropy weightTest on consistency of variety of evaluation methodsReasons for inconsistencyThe settlement of the inconsistencyOperating procedures of a variety of evaluation methods used in the comprehensive evaluationWeighted approach of comprehensive evaluationEmpirical analysisNotesInternational comparison and experience reference for building an innovative countryDeveloped countriesThe United StatesThe US government plays a leading role in the construction of an innovation systemAdvanced legal security systemAdvanced science and technology policy systemLarge number of ongoing scientific research fundsThe United KingdomFormulate innovative strategies and adjust government functionsR&D tax relief to encourage enterprises to make investmentProvide loan guarantee and set up venture fundFund cooperation projects and promote department of trade and industry between universities and enterprisesSupport college start-ups and promote technology TransferJapanFinlandDevelop higher technical educationStrengthen the construction of systems offundamental national knowledge, technology platform, and innovation support and create a superior environment for innovationPromote the formation of industrial clusters and regional innovation system based on regional developmentPromote industry-university research cooperation through technology plan and scientific parkAchieve comprehensive economic and social transitionSpainSummary of basic experiences of developed countries in promoting independent innovation and comments on the Soviet UnionEstablish a relatively complete policy, legal and organizational security system for independent innovation to create a favorable external environmentClarify the main roles of actors of all independent innovation activitiesWith enterprises’ investment as the main body, continue to increase public research fundingPay attention to the diffusion effect of independent innovation and build a cooperative innovation network among government, industries, universities, and research institutesEmerging industrialized countriesSouth KoreaTake science and technology innovation as the first choice and core power of building an innovative countryFrom copying imitation, creative imitation to innovationGuiding and coordinating roles of the governmentGradually cultivate enterprises to be the main body of innovationMalaysiaSingaporeDeveloping countriesIndiaBrazilInspiration and referenceAll countries attach great importance to the construction and practice of the national innovation systemActively cultivate and attract innovative science and technology talents in order to provide intellectual support for improving the capability of independent innovationGive full play to the government in promoting science and technology innovation and improving independent innovation capabilityTo take encouraging and promote technological innovation in SMEs as an important measure to improve national capability for independent innovationPay attention to the role of non-profit intermediary agencies in promoting scientific and technological innovationThe integration of military and civilians has an important significance and roleMarket-oriented mechanism in combination of government policiesNotesInnovative country building: A major strategic choice for China’s future developmentInnovative country building: China’s major strategic choice oriented for future developmentThe inevitable requirement of building a moderately prosperous society in all aspectsThe key to promoting structural adjustment and transforming economic development modeEcological and environmental constraintsConstraints of resources, energy, and raw materialsConstraints of external situation and the international competitive environmentInevitable requirements of meeting the new requirements of globalization and of participating in international competitionFully understand the importance and urgency of enhancing independent innovation capability and innovative country buildingGrasp current characteristics and development direction of China’s independent innovation system scientifically and accuratelyStick to the national subjectivity of scientific and technological innovation in ChinaScientifically understand the stage of China’s independent scientific and technological innovationObjectively understand that the independent innovation system and the building of an innovative country is a systematic taskIndependent innovation should he incorporated into national innovation systemIndependent innovation should he selective and focusedIndependent innovation should he carried out under the condition of opening upCorrectly handle the orientation of government and enterprises in the process of independent innovationGovernment-led scientific and technological innovation modeMarket demand-oriented mode with enterprises as the main body of science and technology innovationEnhancing independent innovation capability: the core of national competitivenessLiterature review on national competitiveness: from comparative advantage to competitive advantageCompetitiveness concept of “comparative advantage”Competitiveness conceptNational competitiveness evaluation system of WEF&IMDThe role of technological innovation in evaluating national competitivenessDefinition of national competitivenessAssessment methods of the main indicators and their weightsIndependent innovation—the technical factors for comprehensive analysis in the evaluation system of national competitivenessIndependent innovation and national competitiveness: an empirical analysis based on ChinaSample objects and data selectionUsing data envelopment analysisIntertemporal DEA efficiency analysisConclusion and inspirationFully Implement Independent Innovation Strategy and PolicyAchieve major breakthroughs on the basis of overall planningFull implementation of policies and measures to encourage independent innovationNotesII. Fiscal and taxation support policies for building an innovative countryThe role of fiscal and taxation policies in promoting independent innovation and building an innovative countryLack of market effectiveness of independent innovation requires governmental interventionThe positive spillover of independent innovation leads to insufficient supply in the marketThe high risk of independent innovation leads to insufficient market supplyFunctioning mechanisms of fiscal and taxation policiesFinancial inputTax incentivesGovernment procurementAnalysis of the functions of fiscal and taxation policies in different stages of independent innovationFundamental research stageTechnology development stageTechnology industrialization phaseFiscal and taxation policies in promoting and guiding all kinds of independent innovationNational innovationRegional innovationKnowledge innovationTechnological innovationCurrent situation and main problems of fiscal and taxation policies in promoting independent innovation in ChinaSituation of current fiscal and taxation policies for independent innovationThe situation of fiscal input policies on independent innovationThe scale of fiscal input in science and technologyStructure of fiscal input in science and technologyStructure of sources of national expenditure for scientific and technological activitiesSources offunding and structure of scientific research and experimental development expenditureStructure of regional distribution offiscal input in science and technologySituation of financial subsidy policySituation for scientific and technological investment of targe- and medium-sized industrial enterprisesSituation of tax incentive policies to promote independent innovationSituation of government procurement policyAnalysis of existing problems in fiscal and taxation policies for independent innovationProblems in cim ent fiscal input policy to promote independent innovationInsufficiency in total input in science and technology and lack of stable growth mechanismThe strategy and focus offiscal input in science and technology are not clear enough and the input structure is irrationalThe funding that enterprises received from the government to support science and technology activities is lowFinancial support for science and technology investment is simple and needs further innovationLack of coordination of fiscal policies with a lack of emphasis and the phenomenon of "sprinkling with pepper’’Management system of fiscal input in science and technology is unreasonableLack of effective supervising mechanism and performance evaluation system for national input in science and technologyProblems existing in current tax incentive policies to promote independent innovationObjectives of tax incentives are not clear and lack of orientation and pertinenceThe scope and objects of preferential tax policies are not reasonable and need to be adjustedTax incentives need to be improvedThere are still obstacles for some categories of taxesThe cost of enterprises enjoying preferential policies is too high to be optimistic in the actual implementationProblems in present government procurement to promote independent innovationThe importance of government procurement in promoting independent innovation is not taken seriouslyThe functional position of government procurement to promote independent innovation is not clearThe supporting regulations of the existing government procurement policies in independent innovation are not yet perfectThe relatively small government procurement scale has limited pulling effect of independent innovationLow-level standard, weak operability, few binding, and poor coherenceThe supervision and controlling system of government procurement is not advanced and the related behaviors are not standardizedThe export market for innovative technologies and products is poorNotesInternational experience of fiscal and taxation policies for independent innovationFiscal and taxation policies for independent innovation in developed countriesUS fiscal and taxation policies for independent innovationGreat government input and increasing budget in science and technologyEnterprises as the main body of technological innovation through preferential tax policiessupport its high-tech industries to promote independent innovation through government procurementA series of operational supporting policies for promoting SMEs’ technological innovationUS government supports R&D of universities and transfer of achievementsFiscal anti taxation policies for independent innovation in EU countriesGovernment budget substantially increases R&D innovation inputAdopt flexible fiscal and taxation policy to encourage independent innovationPromote independent innovation through government procurementImplement targeted input and financing policies to promote enterprises' innovationFiscal and taxation policies for independent innovation of JapanGovernment input in science and technology increased steadilyDevelop preferential tax policies to promote independent innovationDevelop financial policies for transferring technology and industrializing achievementsFiscal and taxation policies for independent innovation of South KoreaSignificantly increase government's input in basic research and technology developmentPromote independent innovation through preferential tax policiesSet up special funds to support enterprise technology developmentPromote transformation of independent innovation achievements through specialized government-funded agenciesSummaryGovernment financial support to basic researchMulti-level preferential tax policies to support independent innovationSupport domestic enterprises for independent innovation through government procurementFocus on the effectiveness and operability of tax policies for independent innovationFiscal and taxation policies for independent innovation of developing countriesFiscal and taxation policies for independent innovation of IndiaGovernment devoted to support research and developmentTake preferential tax policies to promote technological innovationPromote industrialization of technological achievements through specialized government-funded agencies or special fundsAdopt supporting measures to promote the development of small- and medium-sized enterprisesFiscal and taxation polices for independent innovation of BrazilThe government increases input in science and technology through legislationThe government introduced tax policies to encourage enterprises for innovationSummary of fiscal and taxation policies for independent innovation in developing countriesDeveloping countries promote independent innovation mainly through fiscal input and taxation incentives, especially the direct relief policiesNational input is the main method, and enterprises are not yet the main body in an independent innovation systemThe importance offiscal and taxation policies for transformation of innovative achievements is not taken seriouslyThe effectiveness offiscal and taxation policies for independent innovation needs to be improvedReference and enlightenment of foreign experience to ChinaThe formulation of policies should he integrated with the stage of development of ChinaEstablish a stable growth mechanism for budget of scientific and technological fundsImprove the government procurement system to promote independent innovation of enterprisesFocus on improving the effectiveness of fiscal and taxation policies for independent innovationNotesImproving fiscal and taxation policies for independent innovation and building an innovative countryDetermine the Basic Ideas of Fiscal and Taxation Policies in accordance with Strategic Requirements of Building an Innovative CountryStrategic requirements of 11th five-year plan and outline of the national program for long- and medium-term scientific and technological development (2006-2020) on the independent innovationStrategic requirements of the 11th five-year plan for national economic and social developmentStrategic requirements of the national 11th five-year plan for development of science and technologyStrategic requirements of outline of the national program for tong- and medium-term scientific and technological development (2006-2020)Basic ideas to improve China’s independent innovation fiscal and taxation policiesPolicy objectivesPrinciples of improving fiscal and taxation policies in independent innovationThe Ideas of improving fiscal and taxation policies in independent innovationRecommendations on improving fiscal and taxation policies in independent innovationImproving fiscal budget policyIncrease the scale of fiscal input in science and technology and establish a stable growth mechanism on fiscal technological inputOptimize the structure of fiscal input and adjust the direction of financial supportInnovate modes of financial support and strengthen the guiding and leading role of fiscal input in science and technologyOptimize and integrate the allocation of national resources in science and technologyImprove tax incentives for independent InnovationClarify the goals of tax incentives on independent innovationClarify the scope and focus of tax incentivesImprove models of preferential tax incentivesImprove relevant types of tax and regulations based on existing policiesImprove tax incentive system according to the characteristics of enterprises’ innovation activitiesForm a policy system and incentive mechanism by close coordination of tax policies, fiscal policies, and financial policiesFully strengthen legal framework of taxation to improve independent innovationImprove government procurement policy for independent innovationClarify objectives of government procurement on independent innovation and establish and improve a related legal systemFurther improve the relevant supporting policies and measures and enhance feasibility of the policy on government procurement on independent innovationExpand the scale of government procurement and increase the proportion of procurement on independent innovation productsFiscal and taxation policies should he committed to the creation and optimization of innovation environmentImprove procurement system of independent innovation projects and create a good legal environmentOptimize and strengthen the support of policy-orientedfinance for independent innovationImprove related supporting systems of fiscal and taxation polies for independent innovationSpeed up reform on a legal system and build a complete legal system of fiscal and taxation policies for independent innovationFormulate basic laws for innovationUpgrade laws and supporting systems of fiscal and taxation policies in independent innovationImprove relevant laws and regulations of fiscal and taxation policies in independent innovationStrengthen the international coordination of fiscal and taxation policies in independent innovationImprove management system of scientific research funding and related performance evaluation systemReform management system and operating mechanism of science and technology fundsImprove refined and standardized management of scientific and technological fundingEstablish and improve performance appraisal system of financial funds in science and technologyEstablish a system for tax expenditure budget and strengthen the management of tax incentives for independent innovationReasonably select the type of tax expenditure budget managementOptimize tax expenditure budget in science and technologyEstablish a sound statistical system, choose scientific means and methods for estimation of tax expenditureEstablish evaluation system for tax expenditure in science and technology and correctly assess the effect of tax expendituresEstablish supervisory system and performance evaluation system of the government procurementEstablish and improve the government procurement supervisory systemEstablish performance evaluation system of government procurement, including goals of independent innovationImprove the coordinating mechanism between policy tools of independent innovation to form a resultant forceCoordination of policy tools between fiscal and taxation policiesClarify the role and scope of the three types of policies in promoting independent innovationFormulate a fiscal and taxation policy system that is mutually linked and supportedPay attention to the coordination of fiscal and taxation policies with other macroeconomic policies and establish a sound macroeconomic policy system of coordination and cooperationCoordinate with the financial policiesCooperate with industrial policiesCoordinate with education policy for talentsCoordinate with the foreign trade policyNotesIII. Systemic reform for building an innovative countrySystematically promote building a national innovation systemTheories and policy proposals of a national innovation systemFreeman's national innovation system theoryNelson's theory of a national innovation systemPatel and Pavetti’s theory of national innovation systemsLundvall’s theory of national innovation systemsResearch on national innovation system of Porter and othersSupport elements of science and technologyInput elements of science and technologyOutput elements of science and technologyElements of technological innovationOECD’s research on national innovation systemsSummaryComposition of a national innovation systemEnterprises are the main body of independent innovationResearch institutes and research universities are important sources of innovation and base of knowledgeEducational training and intermediary agencies are important boostersThe government is the coordinator and organizer of independent innovationPlay the leading role of government in building a national innovation systemTheoretical research on governmental involvement in an innovation systemPlay the leading role of government in building an innovation systemSteadily promote the systematic building of China’s national innovation systemThe necessity of establishing and improving China’s national innovation systemChina has entered a new phase of foreign economic and technological cooperation and exchange—from capital to technologyForeign direct investment (FDI) does not necessarily have a technology spillover effectDomestic enterprises lack the capability of independent innovation, and the effect of “giving up the market for technology” is not significantThe basic objectives of building a national innovation system—improving the capability of independent innovation and building an innovative countryBasic symbols of an innovative countryIt is the requirements of the times to improve the capability of independent innovation and to build an innovative countryKey of building China’s national innovation system at present stageBuilding a technological innovation system with enterprises as the main body and organically combining production, education, and researchConstruct a knowledge innovation system with organic combination of scientific research and higher educationBuild a national defense science and technology innovation system by integrating military with civilian areas and making the army innovate for civil purposesEstablish regional innovation systems with distinctive features and advantagesConstruct a socialized and networked technological intermediary service systemNotesAnalysis of institutional framework for enhancing independent innovation capability of ChinaObjectives and principles of institutional framework for enhancing independent innovation capabilityObjectivesPrinciplesMeet the requirements of China’s social, economic, and S&T developmentMeet the requirements of changes in government functions and public financial managementMeet the requirements of the laws of S&T developmentBasic contents of an institutional framework for enhancing independent innovation capabilityEstablish and improve high-level S&T decision-making mechanismsEstablish joint-meeting system for S&T budgetsClarify the responsibilities of relevant government departments in S&T managementEstablish and improve a system of input and financing conducive to independent innovationStrengthen the management of financial input in science and technologyEstablish a resource sharing mechanism for S&T resourcesEstablish and improve the management mode for financial S&T resourcesEstablish a mechanism to jointly build and share financial S&T resourcesEstablish an input mode ofplatform construction for basic conditions of technological infrastructure with co-construction and share as the coreEstablish a management mode of a basic S&T conditions platform in with co-construction and share as the coreEstablish a personnel evaluation and incentive mechanism for the construction of a basic S&T conditions platform with co-construction and share as the coreCreate a good social environment of co-construction and share for basic S&T conditions platformImprove the agency system for financial S&T resourcesHow to build an effective incentive mechanismHow to Build strong constraint mechanismsPromote the performance evaluation mechanism and incentive and restraint mechanism for integrating and sharing S&T resourcesOptimize the management mode of financial S&T inputClarify the responsibility and train of thought of management financial input in science and technologyGuiding principles and key elements for improving management framework of government’s S&T inputEstablish and improve unified and coordinated input under the new system of S&T input and public finance budget management systemThe use of government funds should he based on a diversified, selected, and focused input system in order to “achieve the great task with little effort by clever maneuvers”Properly handle the relationship between different levels of governments and different departments in S&T developmentCorrectly handle the classification of government input options and related policiesDeepen the management oJ'S&T funds and related system reformsImprove management system and mechanism for innovations in science and technologyThe development of management system reform in S&T in ChinaThe first phase (1978-1985): a highly centralized planning systemThe second stage (1985-1996): reform the appropriation system to stimulate the vitality of research institutesThe third phase (1996-2006): put forward and implemented the strategy of “rejuvenating the nation through science and education”The fourth stage (from 2006 until now): enhance the capability of independent innovation and build an innovative country comprehensivelyManagement system reform for S&T fundsPackage management mode of unit budget (1978-1985)Centralized management mode of S&T funds (1986-2000)Centralized management of scientific research charged by administrative department in science and technologyImplement classified management for research institutesGradually implement bidding and tendering contracts for major S&T projectsDepartmental management mode on budget (since 2000)Main problems of the present S&T management system, mechanism and budget systemEnterprises have not really become the main body of independent innovationThe macro-management system in science and technology has not been fully straightened outThe evaluation system for S&T achievements has not yet been effectively formed and the three independent systems of budget, implementation, and supervision has not been effectively establishedManagement system for research institutes is not fundamentally rationalizedAn organic integrated mechanism of production, education and research has not yet formedThe main problems of budget management mechanism for government scientific research in ChinaMulti-pronged and fragmented governmental sectors make it difficult to make overall planning and comprehensive arrangements for scientific research activities, and make it difficult to optimally allocate and reasonably share S&T resources, making the use of research funds less efficientManagement mode of S&T fund needs improving. Management cost is high, but the input-output efficiency is not highThe government’s direct management of scientific research funds is not conducive to transforming functions, and is easy to breed rent-seeking and corruptionThe vertical chain of management for the allocation and management of S&T government funding leads to disconnectionTrend and enlightenment of management system reform in science and technology of foreign countriesFocus on enhancing coordination of S&T management at the macroeconomic levelTechnology assessment has become an important means of management in science and technologyEmphasis on the role of top advisory bodies in S&T managementThe focus of management and policies in science and technology shifted to innovation in industrial technologyDeepen S&T management system reform and provide systemic and mechanical guarantee for improving independent innovation capability and building innovative countrySupport enterprises to become the main body of technological innovation, and prompting them to comprehensively improve innovative capabilityGive play to the guiding and stimulating role of economic, S&T policies to make enterprises as the main body of R&D investment and innovative activitiesReform support me thods of S& Tplans and support enterprises to undertake national R&D tasksImprove the technology transfer mechanism to promote integration and application of enterprise' technologySpeed up the construction of modern enterprise system and enhance the internal motivation of technological innovationCreate a good environment for innovation, and support technological innovation activities of SMEsIncrease national investment in technological innovation of private enterprisesDeepen the reform of scientific research institutes and establish modern system for scientific research institutesStrengthen the construction of scientific research institutes according to the responsibilities assigned by the stateImprove the operating mechanism of scientific research institutes and optimize their internal management mechanismActively explore the establishment of a modern university system with Chinese characteristicsPromote the reform of macro-management system of science and technologyStrengthen the macro-management of science and technology, and optimize the allocation of resourcesEstablish and improve the national macro-coordination mechanism in science and technologyEstablish and improve national decision-making mechanism in science and technologyImprove the assessment and evaluation system in science and technologyPromote reforms evaluation system and reward system in science and technologyImprove S&T administrationGrasp the key points and push forward the national innovation system with Chinese characteristicsPromote mechanism innovation integrating industry, education and research closelyFurther improve management system on government budget in science and technologyDeepen administrative system reform and promote independent innovation and building an innovative countryOrientation of government function in building innovative countrySpecific performance of the administrative system restricting independent innovationThe co-existence of “absent” and “offside” government functionsThe phenomenon of interest separation, low efficiency, and serious wasteThe incoherence of administrative examination system with the orientation of support for independent innovationFurther deepen administrative management system reform and eliminate the obstacles that constrain independent innovationAccelerate the formation of scientific and democratic administrative decision-making mechanismAdjust government administrative assessment system guided by scientific outlook on developmentPromote major ministerial system, streamline administrative examination and approval procedures, and integrate scientific and technological resources of public sectorsDeepen the reform of personnel education system and strengthen the incentives for innovative talentsEstablish competitive payment policiesProvide challenging jobsCreate a free and creative atmosphereEstablish a dynamic, multi-level incentive mechanismNotePromote financial system reform conducive to independent innovationFunctions and objectives of financial support system for innovationThe functions of the financial system in a modern economyFunction of resource allocationFunction of payment and settlementFunction of risk managementFunction of incentiveFunctions of financial support system for independent innovationFunction of resource allocationFunction of incentiveFunction of risk managementThe objectives of financial support system for independent innovationMeet the funding needs of various economic entities for innovationForm a multi-level risk-sharing system and rich risk-control measuresForm a strong equity and debt constraints and improve the financial contractInternational experiences of financial support system for independent innovationWell-developed venture capital and multi-level capital market systemDeveloped venture capitalGrowth enterprise market and multi-level capital market systemPerfect indirect financial system and risk compensation mechanismEstablishment of small and medium-sized S&T banksS&T Credit guarantee agenciesRich financial tools in science and technologyThe phased funding demand of independent innovation and the function of financial systemProgress and main problems of China’s financial support system for independent innovationEfforts and progress made in recent yearsPromoted multi-level capital markets and venture capita!Continuously improve the indirect financial support system for independent innovationMajor problems existedThe multi-level capital market is imperfect and not conducive to direct financing of technological enterprisesThe development mechanism of venture capital funds is imperfect and the external environment needs to be improved urgentlyThe development environment for private equity funds is imperfectA sound risk-sharing mechanism for loans of technological enterprises has not yet formed, restricting the development offinancing for SMEs and independent innovationThe financial system has weak incentives for technological enterprisesSuggestion for further deepening the financial reform to support independent innovationAccelerate the improvement of the multi-level capital market systemAccelerate the development of venture capital funds and private equity fundsEncourage commercial banks to carry out specialized services for high-tech enterprises and set up technology hanksInnovate technology financial toolsAccelerate the construction of a financial platform for science and technologyImprove social credit environment and further strengthen financial infrastructureConstantly regulate capital market and strengthen functions of incentive and restraintFurther deepen financial reform and innovate mechanisms for policy financingNotesPostscript: Establish and improve a fiscal and taxation system conducive to scientific developmentDeepen reforms and build a fiscal and taxation system that matches financial power with executive powerGradually form a reasonable division of executive powers, rationalize the allocation of central and local financial powers and income, and promote the transformation of economic development mode and the formation of a unified marketGrasping the opportunity to promote the reform of resource tax and property tax, enrich the local tax system, increase local revenues, and improve the security capacity of local public servicesAccelerate the development of a sound and standardized top-down transfer payment system at central and provincial levels, as well as the necessary “counterpart support" and other horizontal transfer payment systems, to play the role of fiscal equilibrium systemImprove the total score system of enterprise income tax sources and optimize relevant mechanisms to balance interestsEstablish a fiscal and taxation mechanism conducive to independent innovation and building an innovative countryEstablish and improve the financial expenditure mechanism and taxation system to support and encourage the innovative country-building and the capacity of independent innovation of enterprisesGrasp more clearly the key areas and directions of financial support for development in independent innovationImprove the taxation system that promotes environmental protection and rational use of resourcesImprove the fiscal and taxation system that promotes equalization of basic public services and rational distribution of revenuesPostscriptBibliography
 
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