By Lu Wei, Department of Techno-Economic Research, the DRC

Research Report No 159, 2013

Abstract:

China's industrial technology innovation ability is increasing gradually, but the country needs to foster an environment that encourages innovation.

According to the Global Innovation Index 2012 by the INSEAD, China's innovation index ranked 34th among 141 countries, but its innovation environment ranked 55th.

The main factors influencing the country's innovation and ability lie in systemic problems. For example, the market mechanism is not complete, and enterprises suffer from insufficient innovation ability. In addition, top-down government-led innovation patterns are incompatible with market-oriented innovation, and the protection of intellectual property rights is inadequate. The policies that encourage enterprise innovation are not fully implemented and there is a vague positioning of innovative subjects. Basic research and generic technology are also far from enough.

The report analyzes the main factors restricting China's industrial technology innovation and introduces the development of international innovation policies. It proposes that to realize innovation-driven development, China needs to build a good environment and promote transformation.