From the Government-led Mode to the Government-Market Cooperation Mode

—— The Evolution of China's Science and Technology Innovation Development System in the Past 70 Years

 

Huang Yejing

Researcher, Institute of World Economics, Shanghai Academy of Social Sciences

 

The systemic evolution of China’s scientific research and technological innovation can be divided into four stages: establishment of New China’s science and technology system (1949-1959), formation of a national science and technology system (1959- 1979), reform of the nationwide system (1979-1999), and creation of an innovative national system (1999-2019). This phased evolution pattern is highly consistent with that of China's market economy, reflecting market-driven innovation and an ever deepening integration of technology and economy.

At the beginning of the founding of New China, economic construction was mainly directed by top-level design and planning, while research and development activities were undertaken through mobilization and concentration of massive manpower, financial and material resources. Under such a system, China successfully achieved a number of breakthroughs in major technical fields, and some technologies were even close to be the best in the world. But on the other hand, science and technology belonged to a different system from that of the economy. The management system of science and technology was obviously a planned one. Administrative management, rather than market demand, determined the selection of projects for science and technology development.

In the mid-1980s, China was evolving into a market economy. In that period, a large number of scientific research units embraced the market as a result of science and technology systemic reform. Some public welfare research institutions began to implement the policy of “one institution, two systems” to facilitate the creation of joint entities with dual functions of research and production.

The 1999 National Conference on Technological Innovation called for better recognition of a guiding thought, that is, “enterprises are the main force of technological innovation, and corporate technological innovation should be strengthened.” Shanghai initiated an all-round systemic reform of its research institutions with a view to establish a modern research institution system. Those application-oriented institutions were to be developed into shareholding technological companies step by step. Eventually, a large number of application-oriented institutions adjusted their R&D modes and created market-based systems of technological innovation.

Shanghai has become a pioneer city to implement China’s innovation strategy after the city put forward in 2013 the strategy of building itself into a scientific and technological innovation center with global influence. Shanghai has carried out a series of reforms in innovation management, resource allocation and commercialization of innovative research to come up with a new model of innovation, that is, “guided by the government and supported by the market.”

In the future, the key for Shanghai to become a center of innovation is to nurture diverse innovators, create more convenient and efficient incentive systems, and optimize services platforms, which will be conducive to the implementation of Shanghai’s “2035 Master Plan for Urban Development” and the “Construction of An Excellent Global City.”