Analysis of institutional framework for enhancing independent innovation capability of China
- Objectives and principles of institutional framework for enhancing independent innovation capability
- Meet the requirements of China’s social, economic, and S&T development
- Meet the requirements of changes in government functions and public financial management
- Meet the requirements of the laws of S&T development
Objectives and principles of institutional framework for enhancing independent innovation capability
The objectives of an institutional framework for enhancing independent innovation capability are to systematize design at the top level, coordinate institutionalization, optimize allocation of resources, standardize the use of funds, make the management process more scientific, and maximize the output benefits. That is, according to the requirements of the socialist market economy and the laws of S&T, in accordance with the basic idea of establishing a public financial institutional framework—in the light of the status quo, scientific and technological needs and financial supply—make overall planning and coordination, follow the limited objectives, highlight the key points, systematically integrate and optimize the allocation of financial and scientific funds, reform and strengthen the management of financial S&T funds, strengthen supervision and evaluation mechanisms, and improve the performance of financial S&T inputs. China should further improve the environment for policies, laws, and regulations; establish an open, fair and equitable scientific decision-making mechanism; raise the level of decisionmaking and efficiency; and promote the improvement of the level of its S&T and the capability of independent innovation.
The principles of an institutional framework for enhancing the capability of independent innovation that meets the requirements of a Socialist Market Economy are:
Meet the requirements of China’s social, economic, and S&T development
We should focus on building an innovative country, through emphasizing a strategic focus on S&T development and by concentrating on three aspects: “capturing key common technologies in industries and enhancing competitiveness”, “strengthening the construction of the basic conditions for science and technology”, and “increasing the scientific and technological study of social welfare”. We should mobilize the efficient allocation of all social S&T resources and realize integrated innovation and breakthroughs in key areas. We should optimize the layout of S&T forces, as well as establish and perfect the system for innovation. We should develop high-end new technologies, speed up the cultivation of new industries, promote advanced and applicable technologies, and transform traditional industries. We should solve major scientific and technological needs for the development of modern agriculture and public welfare undertakings; and establish and optimize a research and development support system and resource service system to speed up the construction of S&T infrastructure platform. We should strive to achieve a major breakthrough in the field of comparative advantage or in key areas.
Meet the requirements of changes in government functions and public financial management
In the direction and manner, we should adjust the financial deployment in S&T, with the government focusing on support for creating a good environment for innovation and support for investing areas with “public” nature rather than participating in competitive areas. We need to focus on basic scientific and technological activities that are characterized by publicity and externalities. We should move from direct support to indirect support for enterprises. We should shift from mandatory and planned funding to guideline funding, and from direct funding to indirect support through environmental construction. We should mobilize scientific and technological resources by increasing the amount of stock. The government can allocate and integrate technological resources of various departments and systems, such as scientific and technological talents, achievements, funds, equipment and facilities, data, information, etc., for the whole society. We should centralize the organization and implementation of various investment plans for S&T, and change the pattern of fragmented planning management, decentralized forces, and duplication of projects.
Meet the requirements of the laws of S&T development
In the diversified structure of the subject of S&T investment in a market economy, there are three major levels of substantive key elements to be considered: Firstly, how to properly handle the relationship between government and the market and government and society in S&T development. Secondly, in order to realize the government’s responsibilities and functions, how to correctly handle the relations among different government departments and between different levels. Thirdly, in order to make the government to be diligent, how to correctly handle the choice of government investment and related policy support. Under the framework of the top-level design and decision-making mechanism of the new national innovation system, it is necessary to make overall arrangements for capital flow and project flow, and coordinate the management of investment, institutional arrangements, and management practices to achieve the correct handling of these key elements.