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

Research Report No 158, 2013

Abstract:

China has seen sustained and rapid growth of government investment in science and technology since entering the 21st century, and the growth has outpaced GDP growth. Years of investment in science and technology are beginning to yield results. Industrial technology is making progress faster, and enterprise innovation ability is being enhanced.

The report analyzes the characteristics of China's technological innovation at various stages and studies, by category, the innovation model with Chinese characteristics. It makes the following conclusions: China's technology innovation is market-oriented and supported by governments; successful innovation does not lie in pursuit of technological advancement but in being able to meet the market demand. In addition, innovation ability is accumulated over a long time. Many enterprises will occupy the market first, and then accumulate funds and technical ability for innovation. Both high-tech and traditional industries need innovation. The market is an important innovation factor; effective innovation is one that gains market success.