On January 11th, Peking University Guanghua School of Management held the 26th Peking University Guanghua New Year Forum with the theme of ‘Innovation-Driven: Empowering Sustainable Development of the World Economy’. At the forum, Wang Yiming, Vice Chairman of the China Center for International Economic Exchanges, delivered a keynote speech entitled ‘Technological Innovation Leads the Development of New Productive Forces’.
Wang Yiming pointed out that technological innovation is the core element of developing new quality productive forces, and the development of new quality productive forces fundamentally relies on technological innovation. However, China’s technological innovation still faces three shortcomings. The first is insufficient original innovation capability, with few major original innovations and relatively weak basic research. For example, in 2023, the proportion of basic research funding in China’s R&D funding was 6.77%, far lower than the 15%-25% level of OECD countries. The second is being constrained in key core technologies, with a lack of source technology reserves that support industrial upgrading and lead frontier breakthroughs. The situation of key components, parts, basic materials, and industrial software being constrained by others has not fundamentally changed. The third is a shortage of leading scientific research talents, with the number of top scientists still relatively small compared to the economic scale, and the construction of talent environment needs to be improved.
Wang Yiming suggested that first of all, we should shift from “following-type” innovation to “leading-type” innovation, form asymmetric countermeasures in the increasingly complex and severe international environment, and grasp the initiative in international scientific and technological competition. At the same time, we should shift from end product innovation to intermediate product innovation. Furthermore, we should shift from integrated innovation to original innovation.
He pointed out that the proportion of technology spending on basic research should be increased, and enterprises, social organizations, individuals, etc. should be encouraged to increase investment in basic research through donations, establishment of funds, etc. Breakthroughs in basic research should drive major breakthroughs in leading original achievements and strategic technological products, and strive to be at the forefront in more fields internationally.
Wang Yiming specifically pointed out that it is necessary to promote a virtuous cycle of education, technology, and talent. Cultivating and nurturing a high-level talent team is based on education, so it is necessary to layout disciplines and majors beyond the norm, strengthen the cultivation of talents in key areas urgently needed and lacking, young talents, and top-notch talents, and improve policies to support and guarantee leading talents in key areas. It is necessary to implement a more open talent policy, improve mechanisms for high-end talents and professional talents to work, conduct research, and exchange in China, and build a global talent highland that attracts outstanding talents from home and abroad.
Smooth technology achievement transformation channel
Technology transfer is an important way to develop new productive forces. Wang Yiming said that we should attach importance to both the innovation from 0 to 1 and the application research from 1 to 10, as well as the technology transfer from 10 to 100 and the large-scale industrialization from 100 to N, so as to achieve innovation throughout the entire chain from concept design, technology research and development to pilot testing and product.
Regarding the smooth transformation channel of scientific and technological achievements, Wang Yiming pointed out that it is necessary to expand the channels for the transformation of scientific and technological achievements, build a market-oriented system for scientific and technological services and technology transactions; promote the establishment of specialized institutions for the transformation of scientific and technological achievements in universities and research institutes, and promote the construction of a specialized team of technology brokers; and create a favorable ecological environment to support the transformation of scientific and technological achievements, and construct a complete chain system for the transformation of scientific and technological achievements.
He made several suggestions on this.
First of all, we need to explore the reform of the intellectual property rights incentive system for job-related scientific and technological achievements. Clear ownership is a prerequisite for efficient resource utilization. Incentives through ownership are the best incentives. The Third Plenary Session of the 20th Central Committee of the Party emphasized the deepening of the reform of empowering job-related scientific and technological achievements and the establishment of a separate system for job-related scientific and technological achievements assets.
Secondly, we need to strengthen the position of enterprises as the main body of technological innovation. We should establish a mechanism to foster the growth of leading technology companies, strengthen the deep integration of industry, academia, and research led by enterprises, establish a system of R&D preparation funds for enterprises, and support enterprises in taking the lead or participating in national science and technology tasks. Encourage technology-oriented small and medium-sized enterprises to increase their investment in research and development, and raise the proportion of R&D expenses for tax deduction. Encourage and guide universities and research institutes to license their technological achievements to small and micro enterprises in the form of ‘pay after use’.
Furthermore, it is necessary to enhance the autonomous and controllable capability of the industrial chain and supply chain. Horizontally, China has the advantage of production concentration, but vertically, it faces risks. As an economy at the downstream of the industrial chain and supply chain, China faces the risk of being “strangled” by upstream key mineral producers and core technology suppliers. However, the more competitive the product, the higher the dependence on intermediate goods in the international market. Reducing this dependence can lead to loss of competitiveness. Faced with the industrial chain “dualism,” it is necessary to find a balance between openness and security.
Build a science and technology financial system that is compatible with technological innovation.
“Technological innovation is the source, industrial innovation is the carrier, and financial innovation is the catalyst, which is related to whether the scientific and technological achievements can be transformed into real productive forces,” Wang Yiming said. To facilitate the virtuous cycle of technology, industry, and finance, we need to build a science and technology financial system that is compatible with technological innovation.
Currently, the financial system in China is mainly based on indirect investment, which can efficiently allocate funds to the industrial system and infrastructure sector, and achieve relatively high returns through relatively simple means, but this does not fully meet the requirements of technological innovation.
Wang Yiming analyzes that the main indirect financing financial system in our country does not fully match the capital needs of technological innovation. Technological innovation has great risks, while financial institutions pursue stable returns. Technology companies need “long-term money,” while financial institutions tend to provide “short-term money.” Technology-based small and medium-sized enterprises need “small money,” while financial institutions are accustomed to providing “big money.” Technology companies are “research and development-heavy, asset-light,” while financial institutions tend to provide collateralized financing.
How should the financial system make adaptive adjustments? Wang Yiming gives three suggestions on this.
First, we need to vigorously develop a multi-level capital market, encourage more social capital to participate in venture capital, equity investment, and angel investment funds, and meet the funding needs of technology companies at different stages of their life cycles, providing precise services for innovative and entrepreneurial enterprises.
Secondly, we need to explore new models of credit and financing to support technological innovation, eliminate institutional constraints that hinder commercial banks from supporting technological innovation, expand the space for banks to directly participate in equity investment to support technological innovation, and enhance the ability of the banking system to support technological innovation.
Third, we need to improve the level of financial support for technological innovation, use technologies such as blockchain, big data, and artificial intelligence to promote the digitization and online product lines of financial institutions, improve the effectiveness of risk management, thereby reducing the hidden costs of financial services for technology companies, and providing strong support for China’s technological innovation and the development of new productive forces.
（Article Source: 21st Century Economic Report）
Source: East Money
Author: 21st Century Business Herald
