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By Long Guoqiang, DRC

2017-1-17

Opening up through innovation is to promote innovation-oriented development in China with a global view, global resources and global market. Only in this way can we seize the opportunities brought about by globalization, accelerate innovation and forge China’s new advantages in global competition. As a pursuant economy, China is still lagging far behind the advanced countries. Therefore, it is necessary for China to make full use of foreign investment, talented personnel and advanced technologies to catch up and adhere to innovation-oriented opening up for both the present growth and future development.

First, China needs to make efforts to introduce foreign investment, especially high-end industrial R&D activities. Over the past 30 years, the introduction of foreign capital, especially foreign direct investment, has made positive contributions to technology progress, industrial upgrading and institutional reform. Apart from investment, China needs to pay more attention to the introduction of qualified personnel.

Second, China needs to attach great importance to the opportunities in going global. Enterprises can gain advanced technologies, name brands and international marketing channels through mergers and acquisitions. It is important for companies to integrate external resources with local resources for the improvement of enterprise management.

Third, comprehensive deepening of reform constitutes an institutional guarantee to ensure the realization of opening up through innovation. 1. We need to make adjustments to the development strategy with an open and innovative concept. 2. We need to cultivate an institutional environment to attract talented personnel and high-end industrial activities so as to speed up the establishment of a market system for innovation drive. 3. We need to turn state-owned enterprises into multinational enterprises with strong innovation capacity and ability to participate in global competition. 4. We need to further expand market opening up and establish a new system for the development of an open-oriented economy.