Director-general, Prof. Dr. Mu Rongping Institute of Policy and Management (IPM), CAS

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1 The New Geography of Innovation and The Impact of the Economic Crisis: A Paris Policy Symposium, January 19-20, 2012, OECD Paris Policy for Innovation Development in China: Main Challenges Director-general, Prof. Dr. Mu Rongping Institute of Policy and Management (IPM), CAS 1

2 I. Evolution of Development Strategy National Strategies of China Sustainable Development Reinvigorating Nation through S&T & Education Reinvigorating Nation through Talents Now, that to strengthen innovation capacity so as to build innovation-driven nation has become the core of national strategies.

3 II. Policy for Innovation Development Chinese government has taken a series of policy measures to promote innovation development: (1)The Outline of Medium and Long Term Plan for National Science & Technology Development ( ). (2) The supportive policies and related 76 detailed policy documents to implement the MLP since (3) The Outline of the 11th Five Year Plan (FYP) for National Social & Economic Development with Mandatory targets of energy efficiency & pollution reduction

4 II. Policy for Innovation Development (4) Some action programs concerning green growth: --China s S & T Actions on Climate Change and China s National Climate Change Program. --International Cooperation Program on S&T in Renewable Energy and New Energy, focusing on Solar power and solar energy building, biomass fuels and biomass power generation, wind power, hydrogen and fuel cells, natural gas hydrate development.

5 II. Policy for Innovation Development Innovation capacity-building made great progress during past five years. 700 bil. RMB in R&D, 1.76% of GDP in Firms account for over 73%, government 27%. International Publications: the 2th place. Invention Patent enforced in China: >oversea applicants.

6 III. Main Challenges for Innovation The main policy issues in 12 th FYP --innovation in system reform (economic and S&T system) --Breakthrough in basic research, frontier technologies --innovation in strategic emerging industries. --innovation in key industries and modern services as well as modern agriculture. --innovation in social sectors in the process of urbanization Innovative firms are less profitable in some sectors

7 III. Main Challenges for Innovation How to promote innovation? Priority setting: SEI and S&T Innovation Capability-building Mechanism for Innovation Policy Improvement

8 III. Main Challenges for Innovation 12 th FYP for National S&T Development 12 th FYP for National Strategic Emerging Industries 12 th FYP for National Innovation Capacity-building P8

9 National FYP for S&T Development Innovation-driven. Commercialization of S&T achievements Capacity for S&T long-term development. Deepening reform and expanding opening up

10 National FYP for Strategic Emerging Industries New Generation IT Hi-end manufacturing Bi-tech New Energy Energy-saving environmental protection New energy vehicles New Materials

11 National FYP on Innovation Capacity Building S&T&I infrastructure informationization Key industries Modern Service Industries Strategic Emerging Industries industries Modern agriculture Social Service Sectors Regional Innovation Capacity Building innovation budget human resources Innovation Environment & Culture P11

12 International Environment Culture INNOVATION ELEMENTS Social service & application Scientific discovery Technological invention Policies NIC Information Infrastructure Expenditure Human resources Production & market scientific discovery Engineering Commercializat ion Market Engineering INNOVATION ACTIVITIES Government Technological development Commercia lization Social service & application PRIs Universities Input Enterprises Intermediaries Resources allocation & Management NIC Infrastructure People INNOVATION ACTORS Environment P12

13 Thank you!

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