ThegovernmentworkreportdeliveredbyPremierLiKeqiangatthisyear’sannualsessionofChina’sNationalPeople’sCongressmentioned“innovation”manytimes.Thereportreviewedthesuccessfulresultsofinnovation-drivendevelopmentoverthepastfiveyears.Itattributedthesocialandeconomicachievementssincethe18thNationalCongressoftheCommunistPartyofChina(CPC)partlytoacommitmenttoinnovation-drivendevelopment.ThereportproposedmovingevenfastertomakeChinaacountryofinnovatorsandstayabreastoftrendsofthelatestglobalrevolutioninscienceandtechnologyandindustrialtransformation,implementinnovation-drivendevelopmentstrategy,andcontinuemakingtheChineseeconomymoreinnovativeandcompetitive.
Innovationistheprimeandforemostdriverfordevelopment.Sincethe18thCPCNationalCongress,Chinahascommittedtotheprincipleofinnovativedevelopment,implementedinnovation-drivendevelopmentstrategyandpromotedtheconstructionofaninnovativecountry.
Drivenbyinnovation,China’seconomyisundergoingaseriesofmajorchanges.
First,innovationhasledtoafundamentalchangeinthegrowthmodel.InChina’scase,itseconomyisshiftingfromdrivenbyinvestmentandfactorstodrivenbyinnovation.Withprogressininnovation,especiallytechnologicalinnovation,investment’scontributiontoeconomicgrowthisdecreasingwhilescienceandtechnologyaregaininganincreasinglylargerportion.InFebruary2018,WanGang,thenChineseMinisterofScienceandTechnology,briefedreportersonthefactthatthecontributionrateofscientificandtechnologicalprogresstoeconomicgrowthhasreached57.5percent,comparedto52.2percentin2012.
Second,innovationhaspromotedtheoptimizationofeconomicstructure.China’seconomicstructurehasundergonehistoricalchangessincethe18thCPCNationalCongressin2012.Consumptionhasreplacedinvestmenttobecomethelargestdrivingforceforgrowth.Thetertiaryindustryhassurpassedtheprimaryandsecondaryindustriestogainthebiggestportionintheeconomy,whichcouldnothavebeenachievedwithoutcontributionsfrominnovation.
Third,innovationhasquickenedtheevolutionofgrowthengines.Inrecentyears,somesignificanttechnologicalresultshavebeenquicklytransferredintoproductsortheproductiveforceofstrategicallyimportantindustries,injectingnewimpetusintoeconomicgrowth.Forinstance,China’slatestgenerationofhigh-speedrailtechnologynowleadstheworldandfostersanadvancedhigh-speedrailwayindustry.China’sfourthgenerationofmobilecommunicationsstandard,knownasTD-LTE,hasformedacompleteindustrialchainwithusersnumberingmorethan650million.Salesofnewenergyvehiclesneared700,000in2017,withayear-on-yeargrowthrateof51.2percent.
Drivenbyinnovation,China’seconomyiscastingoffoldmodescharacterizedbyhighinput,highconsumptionandheavypollution.Thecountryisontracktowardsinnovative,green,quality,lucrativeandsustainabledevelopment.
AlthoughChinahasmaderemarkableachievementsininnovation,ithasn’tyetmetthestandardstobecomealeadinginnovativecountryandascienceandtechnologygiant.Itisstilldwarfedbydevelopedcountriesincomprehensivestrengthforinnovation.Duetoaweakfoundationforresearch,relativelylowabilitytoproduceoriginalinnovation,alackofinnovativehumancapital,especiallyhigh-endhumancapital,andmanyscientificandtechnologicaldevelopmentsawaitingapplication,itisimperativeforChinatoaccelerateimplementationoftheinnovationdrivendevelopmentstrategy.
Todevelopbyinnovating,weneedinnovators,whichshouldbethemarketentitieswillingtoinnovate.Thepowertoinnovatecomesmainlyfromcompetitionandreform.Firstandforemost,competitionshouldbeintroducedtodriveinnovation.XiJinping,generalsecretaryoftheCPCCentralCommittee,oncepointedoutthatunderthebackgroundofincreasinglycomplexrelationsbetweensupplyanddemand,manynewtechnologies,newindustriesandnewproductsarenotdiscoveredorfosteredbythegovernment,butthroughmarketcompetition.Restrictionsonmarketaccessshouldbefurtherremoved,andmonopolisticandprotectionistbehaviorsshouldbeeliminatedsoastobuildanenvironmentforfaircompetition.
Then,reformpoliciesshouldbeintroducedtosparkinnovation.XionceremarkedthatscientificandtechnologicalinnovationisthenewengineforChina’sdevelopment,andreformistheignitionsystemfortheengine.Reformofinstitutionsrelatedtoscienceandtechnologyshouldcontinue,andold-fashionedregulationsthatholdbacktheencouragementofinnovationshouldbeabolished.Resultsofinnovationshouldn’tbelockedindrawers,butappliedtoboosteconomicdevelopment.Onlybyputtingitintoactioncaninnovationdrivedevelopment.Inrecentyears,moreandmoreresourcesinvestedinscientificandtechnologicaldevelopmenthaveproduceddesirableresults.
Thisyearmarksthe40thanniversaryofChina’sreformandopeningup.Chinahasachievedhighspeedgrowththroughreform,whichiswidelyconsidereda“Chinesemiracle”intheeconomichistoryoftheworld.Fourdecadeslater,China’seconomicdevelopmenthasenteredanewerainwhichinnovationisgraduallybecomingtheprimaryforcedrivingeconomicgrowth.Weareeagertocreateanother“Chinesemiracle”—amiracleofhighqualitydevelopment.TheauthorisaprofessorwiththeDivisionofScienceofEconomicsatthePartySchooloftheCentralCommitteeoftheCPC.