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By Lv Wei, Ma Mingjie & Xiong Hongru, Research Team on “Strategic Policies on Leading Economic Development in the State of New Normal”, DRC

Research Report, No.117, 2017 (Total 5192) 2017-09-14

Abstract: Innovation has become the prime driver to lead development in the state of the new normal. Institutional innovation is a strong driver to bolster scientific and technological innovation. China’s economic structural reform and sci-tech institutional reform are still facing many difficulties and a number of institutional mechanisms are inadaptable to innovative development. In response to the new requirements to innovative development raised by the new round of economic transformation, it is necessary for us to flesh out the systematic defects, enhance the incentive mechanism, optimize the innovation system, and create a suitable institutional policy environment. To this end, this paper puts forward the following four policy options. First, we need to let the government play its due role and further straighten up the relations between the government and the market in promoting innovative development. Second, we need to optimize the innovation policies in a targeted manner, and cultivate innovation entities, including a group of frontrunners. Third, we need to clarify the respective functions of businesses, institutions of higher learning and research institutes, promote industry-academia-research collaboration in making innovation, and strengthen the original innovation capability. Fourth, we need to make China’s innovation system wider open to the world and make efficient use of global innovation resources.

Key words: innovative development, driver, capability, policy options