Give full play to the government in promoting science and technology innovation and improving independent innovation capability

The United States has taken the following measures. (1) The federal government has stepped up its leadership in science and technology development and provided organizational guarantees for the improvement of independent innovation capability. (2) The government has improved the infrastructure and promoted the industrialization of scientific and technological achievements in terms of hardware. The federal government not only creates an environment conducive to the industrialization of technological innovation and scientific and technological achievements in terms of taxes and regulations, but also emphasizes the improvement of various infrastructures and provides the basic conditions for promoting the transformation of scientific and technological achievements into real productive forces. (3) The government has established R&D mechanisms for scientific and technological innovation. The United States has formed a joint R&D and production mechanisms comprising the federal government, state governments, enterprises, research institutes, and universities in the field of high-tech industries.

France adopted a centralized system of science and technology management system, and the governmental intervention in technological innovation is comparatively more. France believes that progress in science and technology determines the future and that the improvement in the national economic efficiency depends on the research, development, and application of new products. Therefore, considerable efforts have been devoted to technological innovation: to strengthen the cooperation between scientific research and enterprises, to provide tax incentives for innovative enterprises, to set up incubators and start-up funds, to reform tax policies for research and taxation and encourage enterprises to increase investment in scientific research, and to review the situation in the social economy at different stages of development and pay attention to the timely adjustment of innovation policy.

Japan attaches great importance to the cultivation of scientific and technological innovation and independent innovation capability and adopted many structural reform measures. According to the edition of the White Paper on Science and Technology issues by Japanese Ministry of Education, Culture, Sports, Science and Technology in 2005, Japan has as much as 16.8 trillion yen budget in science and technology, which is second only to the United States. Japan also set up a special agency for the promotion of science and technology, which is accountable for the research and development of new national technologies. The Ministry of Education, Culture, Sports, Science and Technology also provides scientists with funds such as scientific research grants, social technology research and promotion funds, science and technology rejuvenation fees, and key technology research and development funds. All local governments also have their own fund for the development of science and technology.

In order to promote the improvement of independent innovation capability, Finland takes a series of major measures and plays a significant role in promoting technological innovation. First, according to the national conditions, adopt a policy that directly supports the R&D of enterprises. The main method of such support is to attract and encourage research institutes, enterprises, and colleges and universities to participate in the implementation of the national technical plan through funding from institutions such as the Finnish Technology Development Center. The second is to create a good environment for technological innovation in enterprises. The government’s most important action in this regard is to support the construction of a science and technology park. Third, promote the development of venture capital. Fourth, strengthen international cooperation in science and technology, especially with EU countries. Through international cooperation in science and technology, the capability of independent innovation has been enhanced.

To take encouraging and promote technological innovation in SMEs as an important measure to improve national capability for independent innovation

The measures that United States mainly takes to encourage and promote technological innovation in SMEs are the following. (1) Enact relevant laws. Investment Act for SMEs was promulgated in 1958. In 1982, the United States passed the Act on Innovation and Development in Small Enterprises and formulated the Small Business Innovation and Research Program to encourage small enterprises to tap their own technological potential, provide financial support for the development of innovative technologies, and encourage their commercialization. In 2000, the Act on Innovation and Development of Small Enterprises was supplemented and revised, and the legal limitation of innovation and scientific research plan was extended to September 30,2008. (2) Formulate and implement a series of policies and measures to support the technological innovation of SMEs and endeavor to create a relaxed external environment for the development of SMEs. For example, implement small- and medium-sized technology innovation plans, set up small business technology innovation and transfer reward projects, set up science and technology business incubators, provide technological innovation funding support, introduce low interest rates and tax incentives, provide more perfect technology innovation management and service system, and so on.

Japan’s encouragement and promotion of technological innovation in SMEs include the following. First, Japan provides laws and regulations and policy support for technological innovation by SMEs. Japan enacted the Small and Medium Enterprise Basic Law in 1963 and stipulated how the government should support the technological innovation of SMEs. Since the 1980s, in response to the economic downturn, the government has enacted the SMEs Business Corporations Law, the Law on Promotion of Research and Exchange, the Law on the Promotion of Technological Development for SMEs, and so on. In 1995, the SMEs Promotion Law on Innovative Activities was enacted. Second, it sets up a special SMEs management agency to guide SMEs in technological innovation activities. Japan established the Office of Small and Medium Enterprises under the Ministry of International Trade and Industry in 1984 in accordance with the Law on the Establishment of Small and Medium Enterprises, and set up a guideline for SMEs at all levels of local government departments of commerce and industry, which form a national administrative system for SMEs. Third, considering a shortage of funds due to the weak credit of SMEs, it provides three financing channels for technological innovation of SMEs: the financial system of SMEs provides various forms of loans for technological innovation of SMEs; Japan’s ordinary commercial banks provide financial services for the development and technological innovation of SMEs; Japan sets up specialized financial institutions in specialized banks to provide financing for SMEs, including mutual banks, credit banks, and credit portfolios. Fourth, in order to encourage and promote the technological innovation of SMEs, Japan has implemented various tax preferential policies. For example, according to the tax deduction system for increasing experimental research funding, when the increase in experimental research and development funds partially exceeds the highest level in the past, the increased part of the tax can have 20% exemption.