Fiscal and taxation policies should he committed to the creation and optimization of innovation environment

To support the independent innovation, the most important thing is to create a good environment for innovation. As to knowledge innovation, the emergence of innovative ideas and the growth of innovative talents require a relaxed and democratic academic environment and relatively stable financial support. We should not only encourage success but also tolerate failure. This requires the establishment of national financial support for scientific innovation and stable funding mechanism to support the growth and development of innovative talents, to optimize the allocation of scientific and technological resources, and continuously reform basic scientific research evaluation mechanism. In terms of technological innovation, fiscal and taxation policies should focus on building a dynamic national research and development system. It is necessary to promote the close integration of production and research, encourage enterprises to increase investment in research and development, and promote the transformation of scientific and technological achievements and industrial applications through incentive tax preferential policies. In addition, the most effective and direct way for the whole society to encourage innovation is to use independent innovation products by domestic enterprises, which require a favorable government procurement policy, including strong support of the first purchase and ordering policy.

To formulate and implement policies and measures to encourage independent innovation and to optimize the institutional environment of independent innovation, four aspects below need to be considered. The first is fiscal and financial policies—through the tax preferential policies to encourage enterprises to increase investment in research and development; to promote independent innovation of government procurement system, and give priority to the purchase of high-tech equipment and products with domestic independent intellectual property rights; to improve the relevant financial policies to guide all types of financial institutions to support independent innovation and industrialization. The second is the industrial policy. We will continue to improve the policy of promoting the transformation of scientific and technological achievements and the industrialization of high-tech industries; formulate and improve the policy of promoting the digestion and absorption of new technologies; strengthen the effective convergence of technology introduction, digestion, and absorption; and improve the technical support and capability of self-development. We will also strengthen the introduction of major technology and equipment management to prevent the blind repeated introduction. The third is the policy of high-tech industry development zone. At present, the construction of the national high-tech development zone is entering a new stage, facing the second venture to focus on enhancing independent innovation capability. High-tech industrialization zones need to further play their advantages as high-tech industrialization base. As an important carrier, high-tech industrialization zones should strive to promote technological progress and enhance the capability of independent innovation. As a powerful engine, high-tech industrialization zones should promote economic restructuring and transfer of economic growth mode. High-tech industrialization zones should also be a service platform for high-tech enterprises to go out to participate in international competition and it should be at the leading position to seize the world’s high-tech industry. We need to continue to improve the development of high-tech zones to support the relevant policies and cultivate a number of enterprises with independent intellectual property rights and capability of international high-tech competitiveness. The fourth is intellectual property protection policy. Without intellectual property protection, there can be no independent innovation. Protection of intellectual property rights is not only necessary to establish international credit of China, to expand the needs of international cooperation, but also necessary to stimulate the needs of domestic independent innovation. Protection of intellectual property rights is respect for labor, for knowledge, for talent, and for creativity, and is to encourage scientific and technological innovation. The whole society should raise the awareness and concept of protection, of intellectual property, and especially, the leading cadres at all levels should pay more attention to this. We need to speed up the improvement of relevant laws and regulations, increase the intensity of enforcement of intellectual property protection law, and resolutely investigate and crack down on various violations.

Improve procurement system of independent innovation projects and create a good legal environment

In order to implement the policy of promoting independent innovation, the Ministry of Finance has formulated Measures for the Administration of Government Procurement Budget for Independent Innovation Products, Measures for Qualification of Government Procurement on Independent Innovation Products, Administrative Measures on Government Procurement Contracts for Independent Innovation Products, and relevant provisions of Government Procurement Law, so as to fill some legal gaps. But because of its lower legal level, the binding effect is not strong enough; supervision, punishment, and other supporting provisions are not perfect; and the operational terms still need to continue to be improved. These regulations failed to give full play to support and stimulate the government procurement of independent innovation. Therefore, on the one hand, the Ministry of Finance should propose to State Council or the National People’s Congress to develop relevant provisions so as to improve its legal rank, and, at the same time, enhance some government procurement constraints on construction projects, mechanical and electrical products, and so on. On the other hand, considering characteristics of technological innovation, we should further improve some supporting provisions of procurement on independent innovation and proceed with the development of some measures or regulations, such as Audit Methods on Procurement of Foreign Product, Qualification Standards for Independent Innovation Product, Announcement Management Approach on Procurement Information of Independent Innovation Project, Procurement Methods on Independent Innovation Project, Methods on Evaluation Standard for Procurement of Independent Innovation Project, Method on Appeal of Procurement of Independent Innovation Project, and other provisions. The use of government procurement to stimulate independent innovation is a very complex work, which needs common push and coordination of a wide range of legal system, and needs to establish a rigorous qualification system for independent innovation products and technology, so as to avoid problems in actual operation because of less clear identification. It also needs to establish an objective and impartial standard system for qualification and evaluation of independent innovation, including the evaluation standard, evaluation and accreditation agencies, and related system.

Through the improvement of the legal system, we can build a benign operational mechanism and a fair, impartial, and transparent procurement environment, so as to ensure that all innovative entities, especially important innovative entities and the suppliers, can actively participate in government procurement, to stimulate full confidence and hope of innovative suppliers to the government procurement and to promote the realization of functions of government procurement.

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