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

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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

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.

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 (2006-2020). (2) The supportive policies and related 76 detailed policy documents to implement the MLP since 2006. (3) The Outline of the 11th Five Year Plan (FYP) for National Social & Economic Development with Mandatory targets of energy efficiency & pollution reduction

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.

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 2010. Firms account for over 73%, government 27%. International Publications: the 2th place. Invention Patent enforced in China: >oversea applicants.

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

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

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

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

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

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

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

Thank you! mrp@casipm.ac.cn 2012-1-20 13