Dr. WAN Gang
Minister of Science and Technology, China
Distinguished Delegates:
In early 2006, the China government promulgated the Outline of National Medium- and Long-term Science and Technology Development Plan (2006-2020), which identifies innovation as the new national strategy, placing innovation capability strengthening as the strategic basis forS&T development and the core of industrial restructuring and growth mode transformation. It has also set the goal of driving China into an innovative nation by 2020. One of the key indicators is that the gross expenditure on R&D (GRED) will exceed 2.5% of GDP with the contribution rate of S&T progress to economic development reaching above 60%. The Outline has drawn the blueprint for future S&T innovation in China with an emphasis on creating a favorable policy environment for innovation.
We define innovation as original innovation, integrated innovation and re-innovation based on assimilation and absorption of imported technologies. This does not mean “self-innovation” or “closed door innovation”, but an open and learning type of innovation that integrates global S&T resources by reinforcing international cooperation.
China’s future development has been increasingly constrained by bottlenecks in the field of energy, natural resources and environment. Our advantage lies in the abundant human resources and their innovation capability, with the number of S&T personnel reaching 38 million, ranking first in the world, among which 1.2 million are involved in R&D activities, ranking world second after the U.S. By taking innovation as the national strategy, the Chinese government will bring into full play the enthusiasm and potentials of its people and create an eco-system conducive to innovation through deepening reform. We will achieve resource-saving, environment-friendly and sustainable development in a harmonious society with innovation as the main driving force for future development. The innovation strategy will not only expand the domestic market of China, but also bring new opportunities and impetus for the economic development of the U.S. and the world as well.
In order to meet the needs and challenges of the sustainable socio-economic development in the future, the Chinese government has identified the priority fields for S&T innovation, to which the U.S. also pays great attention. With a great many common interests, both countries will benefit a lot from the cooperation in those areas.
First, China puts technological development of clean energy and environment protection high on the agenda of S&T innovation. Second, we adopt the improvement of nutrition and public health as our major S&T innovation mission and strive to reduce the threat of major diseases. Third, China encourages the development and application of pre-competition common technologies to upgrade industrial structure and provide technological support for SMEs. Forth, we will reinforce basic and frontier researches.
The Chinese government will take the responsibility of creating a market environment favorable for fair competition as well as a policy and culture environment conducive to innovation and new technology application through policies and regulations. It will frame a set of incentives based on the experience of foreign countries including the U.S. in venture capital, financing, fiscal and taxation policies, etc.
The most prominent goal of our innovation strategy is to encourage enterprises including private enterprises to become the major players in innovation activities and accelerate the formation of an enterprise-led, market-oriented technology innovation system featured by industry-university-research institute collaboration. Most of the innovation policies aim at enhancing the innovation in various enterprises, especially SMEs. We also encourage universities and research institutes to establish diversified innovation partnership with enterprises to promote technology transfer and startups as well as create more job opportunities. In the past two decades, with soaring development, the 150,000 private high-tech enterprises in China recruit more than 1.8 million personnel involved in innovation activities and 90% of the 40,000 high-etch enterprises in the 54 national high-tech industrial development zones are private-owned, such as Lenovo and Huawei. In terms of incubator, China boasts the second largest number after the U.S., with 534 incubators established with government support. In the meantime, China has transformed 1,000 application-oriented R&D institutes originally affiliated to the government into innovative enterprises through institutional reform.
The Chinese government attaches great importance to the creation, management, application and protection of the Intellectual Property Rights (IPRs) since it is the internal requirement of China’ innovation strategy. The government has made vigorous efforts in IPR protection and the progress it has achieved is as substantial as any other country in the world. Over the past twenty years, we have established a relatively complete legal system for IPR protection in compliance with the international practices and set up an efficient working mechanism and a “two-wheel” IPR protection mode of both administrative and judicial protection. China also develops extensive international cooperation with other countries, including the U.S., and participates in a dozen of treaties and international agreement for IPR protection.
The Chinese government has always been sticking to the policy of strengthening international S&T cooperation, which leads to economic and trade collaboration including many major programs. With their unique advantages, China and the U.S. are complementary in innovation capability and enjoy extensive common interests. We suggest the two parties upgrade our cooperation in the following aspects to reap the harvest:
1. To promote joint R&D in key areas with common interests, including clean energy, natural resources, environment protection, public health, agriculture, disaster prevention and mitigation, basic research, etc. Efforts should be made breakthroughs based on the existing efforts and intensify technology transfer for public welfare.
2. To enhance bilateral cooperation in innovation policy-making and technology standard setting by jointly holding various seminars.
3. To facilitate academic cooperation and exchanges between scientists of the two countries.
4. To establish partnership between universities and laboratories of the two countries.
We wish that both the Chinese and U.S. governments could continue to put much emphasis on the mutually beneficial S&T cooperation between the two countries, and create a better policy environment to nurture more fruitful achievements in the future.
