Zhejiang Daily:

For enterprises, innovation concerns their long-term development. The report to the 20th CPC National Congress proposed reinforcing enterprises' principal role in scientific and technological innovation. Concerning that, what will the MOST do? We are interested in whether there are any policies and measures to support enterprises, especially sci-tech enterprises. Thank you.

Wang Zhigang:

Thank you for your question. This question is fundamental; we will have Mr. Wu Zhaohui answer it.

Wu Zhaohui:

The 20th CPC National Congress made a clear decision about reinforcing the principal role of enterprises in scientific and technological innovation. The change from enterprises assuming a predominant role in technological innovation to the central role in scientific and technological innovation demonstrates at least two facts. One is that increased importance is attached to the role of enterprises in the national innovation system. The other is that enterprises will play a more prominent role in whole-chain innovation. Enterprises will not only maintain the principal role in technological innovation, application of scientific and technological achievements, and incubation of industries but will also play a greater role in basic and application-oriented research. Making enterprises play the principal role in scientific and technological innovation is a natural requirement for building greater scientific and technological strength, which can be interpreted from two perspectives. From the perspective of enterprises, as the basic unit of economic activity, they are geared toward diverse market needs and sensitive to product innovation and industrial innovation. At the same time, scientific and technological needs mainly come from enterprises, and they facilitate the commercialization of scientific and technological advances. Therefore, from this perspective, enterprises are the most dynamic force of innovation.

The second perspective is that science and technology support high-quality development. China has entered the stage of innovation-driven high-quality development, which requires enterprises, as a critical point linking innovation chains and industrial chains, to play an adhesive or even a leading role in removing impediments along the links of basic research, technological and industrial innovation. At the same time, it also requires enterprises to make more efforts in basic research, application-oriented research and research and development (R&D) on pioneering technologies, which is also the general practice and successful experience of major leading countries in science and technology.

Setting our sights on greater self-reliance and strength in science and technology, we need enterprises to take on greater responsibilities. Confronted with new requirements in the future, whether enterprises can genuinely play the principal role in innovation depends on whether they can lead more universities and research institutions to jointly accomplish and promote high-level goal-oriented research and development. It also depends on whether enterprises can establish an incentive mechanism for innovation to attract more high-level talents and jointly create market value. Moreover, it also depends on whether these enterprises will cooperate internationally and whether they can achieve win-win outcomes through opening up and innovation. In the final analysis, the solution to these key problems depends on raising enterprises' capacity for scientific and technological innovation, and ultimately, market validation is needed to test the innovation capacity of enterprises. Therefore, only through innovation can development be achieved.

According to the deployments and requirements of the CPC Central Committee, the MOST has continued to make efforts on policies, production factors and projects to support enterprises to improve innovation capacity. Specifically, stronger support has been given to decision-making, investment in R&D, scientific research organization, and the application of scientific and technological advances. Next, focusing on "reinforcement in four aspects," we will continue to enhance the principal role of enterprises in scientific and technological innovation.

First, we will reinforce the principal role of enterprises in decision-making on scientific and technological innovation. We will continue to facilitate greater and wider participation of enterprises in national scientific and technological innovation decision-making. Specifically, we will recruit science and technology experts from the business community into the national pool of science and technology experts, establish the advisory meeting system of entrepreneurs on scientific and technological innovation, and guide enterprises to carry out R&D in combination with major national strategies.

Second, we will reinforce the principal role of enterprises in R&D investment. According to statistics, enterprises' investment in R&D in 2022 accounted for over three-fourths of the total investment in R&D across China, which is a very good trend. We will continue to support enterprises to increase their investment in R&D and advance the implementation of policies on granting additional tax deductions for R&D costs and others. At the same time, we will set up a working mechanism for offering financial support to the innovation of enterprises to remove barriers along the scientific, technological, industrial and financial chains.

Third, we will reinforce the principle role of enterprises in organizing scientific research. About 80% of key national science and technology R&D programs are participated in or led by enterprises. We will continue to work on that to enable more enterprises to take the lead in organizing national science and technology programs. We will also encourage more enterprises to identify their needs in science and technology, giving play to the role of enterprises in setting the questions, providing the answers, and reviewing the results.

Fourth, we will reinforce the principal role of enterprises in the commercialization and application of scientific and technological advances. In 2022, the volume of contracted technology transactions reached 4.8 trillion yuan, and enterprises contributed over 80% of contracted technology absorption. That is an excellent signal. We will further optimize policies to increase enterprises' capacity for absorbing and commercializing scientific and technological advances. Meanwhile, we will promote effective interaction between the technology trading market and technology transfer institutions to build a high-quality and high-standard technology market to pool together all kinds of scientific and technological advances at the enterprise level. 

At last, let me emphasize again that innovation has nothing to do with its origins. All enterprises, big or small, state-owned or private, should enjoy equal rights, equal opportunities, and equal rules in the process of innovation. The MOST will provide better services and stronger support and create fair and equitable policy environments for enterprises to enhance their innovation capacity and enable them to make greater contributions to innovation. Indeed, while prioritizing enterprises' principal role in scientific and technological innovation, we will also give full play to the role of research institutes and universities. Thank you.

Wang Zhigang:

It is an essential requirement for enterprises to hold the principal position in scientific and technological innovation. China is now a socialist market economy, and enterprises are the main participants of market economies. To strengthen our science and technology to provide support for China's high-quality development, and to become a great modern country, enterprises must play a principal role. In this process, it is a requirement for the enterprises themselves to continuously improve their own independent scientific and technological capabilities. At the same time, support from the state is also an opportunity, which is an inevitable requirement for development. This year we will also work together with relevant departments, localities and high-tech enterprises. Over the years, we have done a lot of work. The number of high-tech enterprises has reached 400,000, and the number of small- and medium-sized high-tech enterprises has reached 500,000. Their R&D investment accounts for 68% of the national enterprise R&D investment. They are the pioneers of new industries and new markets, and a central pillar to ensure the healthy development of national enterprises and industries. This force needs to be further expanded and improved, both in terms of scale and quality. Thank you.