The Development Strategy and Innovation System in China

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1 The Development Strategy and Innovation System in China Professor YANG Qiquan Chinese Academy of Science and Technology for Development MOSCOW Oct.1, 2009

2 Introduction: Although globalization has obtained unprecedented development, scientific and technological knowledge are not equally utilized among different countries and peoples. Based on the discrepancy of the knowledge development, some countries maintained a sustained and rapid development, and took the lead in world s economic development, while some other countries failed to achieve an equivalent significant development, and even gradually becoming marginalized.

3 innovative countries Group1:Some countries, like oil producing countries in the Middle East, mainly depend on rich natural resources to increase their national wealth. Group 2: In some Latin American countries, their economy is attached to the capital, market and technology of developed countries. Group3: And some countries, based on the absorption of advanced technology of other countries, regard initiative innovation as national strategy, and form a strong international competitiveness. The last group of countries are called innovative countries in the international academic community. The innovation composite index of these countries are obviously higher than the other countries, scientific and technological innovation become the predominate strategy for development.

4 20 innovative countries in the world 创 新 能 力 指 数 * (2001 年 ) 俄 罗 斯 斯 洛 伐 克 中 国 捷 克 匈 牙 利 芬 兰 法 国 加 拿 大 英 国 荷 兰 新 加 坡 比 利 时 新 西 兰 以 色 列 意 大 利 奥 地 利 西 班 牙 澳 大 利 亚 冰 岛 韩 国 德 国 瑞 典 日 本 丹 麦 爱 尔 兰 美 国 瑞 士 挪 威 ,000 20,000 30,000 40,000 50,000 人 均 GDP( 美 元,2001 年 )

5 1. Building an innovative country is an inevitable choice for China s development. 1.1 The goal of building a well-off society in an allround way determined China should take the path of building an innovative country. 1.2 The special national conditions determine China should take the path of building innovative country. 1.3 The need to assure national defense security and economic security determined China should take the path of building innovative country.

6 1.1 Building a well-off society in an all-round way determined China should take the path of building an innovative country By 2020, China s GDP will be quadrupled than that in 2000; per capita GDP will increase from 1000 US dollars to 3000 US dollars. International experience shows that it is the key period to realize industrialization. Marginal contribution ratio of the traditional factors of production like labor force, capital and land resources for economic development is going to decline, and innovation will gradually become the predominant factor for supporting and leading economic and social development. Therefore, the basic task of economic development during this period is to largely improve innovation ability, and to accomplish the transformation from factor-driven development to innovation-driven development step by step.

7 1.2 The special national conditions determine China should take the path of building innovative country How to settle the employment of our abundant labor forces, especially the employment of surplus rural laborers smoothly in a short time is an issue that never occurs in the world s development history. China s industrialization is faced with severe and urgent restriction of the bottleneck of resources and the pressure of ecological environment. We must not overuse our resources and polluting before administering it.

8 1.3 The need to assure national security determined China should take the path of building innovative country With the development of national economy, we will meet more and fiercer external influence and strikes. The lesson of financial crisis in is also very profound.

9 2. The guidelines of China s science and technology development. Strengthen indigenous innovation Achieve leapfrog advances in key areas of science and technology Support and guide coordinated economic and social development

10 3. The objectives of China s science and technology development By 2020, China will become an innovative country, and will be one of the important technological innovation centers in the world. The ratio of input in research and development to GDP will reach 2.5%. By 2020, the ratio of dependence on foreign technology will reduce to under 30%. Citation numbers of international scientific papers will enter top 5. The number of patents for invention will enter top 3 in the world.

11 4. The key tasks of China s science and technology development 4.1 Train of thought for science and technology development 4.2 The general plan of China s science and technology development

12 4.1 Train of thought for science and technology development Give priority to energy development, water resources and environmental protection technology; Regard proprietary intellectual property rights of equipment manufacturing industry and core technology of information industry as the key for the breakthrough of China s industrial competitiveness. Regard biotechnology as the focal point for high-tech industry in the future Accelerate the development of aerospace technology and marine technology. Reinforce the research on basic science and frontier technology, especially cross disciplinary research.

13 4.2 The general plan of China s science and technology development The outline proposes 11 key fields of national economy and social development, and focus on 68 priority topics which can probably obtain breakthrough in the near future; Aim at national objectives, implement 16 major projects, such as large aircraft, high resolution earth observation systems, manned space program and lunar probe program etc. The outline mainly focus on 27 frontier technologies in 8 fields of technology, 18 basic scientific questions, and proposes the implementation of 4 major scientific research projects. Deepen the institutional reform, improve policies and measures, increase science and technology input, strengthen the cultivation of talents, promote the construction of national innovation system,

14 5. Reform of S&T regime and national innovation system building in China An enterprise-centered technological innovation system with combination involving production, education and research; A knowledge innovation system with combination involving scientific research and higher education, A national defense innovation system with army-civilian combination; A regional innovation network with different industrial characteristics; A socialized and networking sci-tech intermediary service system. The network of the five parts

15 5.1 Enterprise-centered technological innovation system. In national innovation system, enterprise should be the main part of R&D input, technological innovation activities and the application of innovation achievement. Enterprises input of R&D in China increased notably. Innovation is becoming the key factor to improve the core competence of enterprises.

16

17 R&D expenditure of Enterprises in China

18 Analyze R&D input by the enterprises ownership R&D funds (billion Yuan) Proportion (%) R&D funds (billion Yuan) Proportion (%) All domestic enterprises State owned and state holding enterprises State-owned enterprises Other enterprises

19 The increment speed of foreign enterprises is obviously higher than domestic enterprises 2000 年 2004 年 R&D funds (billion yuan) Proportion (%) R&D funds (billion yuan) Proportion (%) annual growth rate (%) All enterprises Domestic enterprises Foreign enterprises Foreign investment enterprises Hong Kong, Macao, and Taiwan investment enterprises

20 5.2 Reform of the governmental R & D institutes Overall development of governmental research institutes. Reform of governmental technological development institutes. Reform of governmental social benefit scientific research institutes knowledge innovation project of Chinese Academy of Science

21 Overall development of governmental research institutes Compared with 1999, in 2004, the proportion of government research institute R&D personnel in the national total reduced from 28.4% to 17.6%, while the collect of money of the government R&D institutes increased from 52.4 billion Yuan to 78.9 billion Yuan, with an annual growth rate of 5.3%, funds from government department increased the fastest, with an annual growth rate of 9.3%, and the proportion increased from 62.9% to 75.5%. the number of papers of R&D institutes included by SCI, EI and ISTP increased with an annual growth rate of 16.33%. The number of patents granted increased from 2573 in 1999 to 4137 in 2004, with an annual growth rate of 9.9%.

22 Reform of governmental technological development institutes. Till now, 376 technological development institutes under departments of state council and 700 local technological development institutes have completed the transformation. in the year 2004, the scientific and technological input increased by 21% compared with The scientific and technological fund from government was 1.1 billion Yuan, increased by 30% compared with 2000 the scientific and technological revenue from enterprises was 7.1 billion Yuan, increased by 60.5%

23 The changing of the R&D expenditure on GRIs ( ) 100 million yuan 600 Current price Real price

24 The R&D personnel on GRIs and the average R&D expenditure per R&D personnel ( ) R&D personnel (thousand person-years) Scientists and engineers R&D expenditure per capita (thousand per person-years)

25 A classification Reform for the governmental social benefit research institutes In 2001, China launched classification reform for the 265 social benefit scientific institutes under central government. Those scientific institutes with market-driven ability turned into enterprises. Government provides strong financial support for those public welfare scientific institutes which can hardly make profit. These institutes are managed and operated as nonprofit-making scientific research institutes.

26 THANK YOU

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