Li Zhijun

I. To Combine Autonomous R&D with Introduction of Foreign Technologies

China’s economic and social development will pose a huge demand for science and technology in the future. Fundamentally speaking, scientific and technological supply in the future consists of two aspects, home supply and foreign supply, that is, to combine autonomous R&D with introduction of foreign technologies, to avoid being fully dependent neither on introduction nor on autonomous renovation. On the one hand, China needs to study and develop key technologies of certain strategic areas as well as technologies of market monopoly that are unable to be introduced all on its own, because original innovation capacity and autonomous intellectual property rights are especially highlighted in basic science, high-tech and industrial technology fields. On the other hand, more efforts are needed to introduce advanced technologies and equipment, to absorb and re-innovate these technologies, and to use introduced technologies to promote innovation at home. Therefore, to combine technology introduction with autonomous innovation is the best way to sharpen industrial competitive edge.

II. To Combine the Leading Role of Government with Operation of Market Mechanism

China should bring its superiority of the socialist system into play, to concentrate strength on important undertaking, such as organizing forces to tackle scientific and technical problems of key technologies and equipment. Meanwhile, it should pay adequate attention to the functions of market economy, and rely on market demand to drive research and development, and to meet the requirements of economic and social development.

III. To Give Play to the Role of the Government in R & D in Terms of Industrial Technologies

The role of the government in research and development of industrial technologies is to fill in the market gap. The government should play an active role in the field where enterprises are not willing or lack of strength to invest, thus forming a complementary relation with research and development by enterprises. It is a long-term strategy for the government to assist research and development, and the aim is not to pursue direct benefits of project itself, but to maximize the social benefit as a whole; it is not to pursue the short-term and immediate profit, but to seek the long-term development of the society. Therefore, most of the projects funded by the government are basic, experimental and uncertain research projects. Meanwhile, the government should play an active role in research and development of certain applied technologies that have a bearing on the state security and competitiveness of industries.

March 2004

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