Innovation seen as 'core element' of new drivers

China's emphasis on bolstering the development of new quality productive forces through scientific and technological innovation will inject strong impetus into high-quality economic growth, advance industrial upgrades and boost the nation's core competitiveness globally amid headwinds and external uncertainties, according to experts and company executives.

Highlighting that nurturing new growth drivers has been high on China's development agenda, they called for accelerated efforts to achieve breakthroughs in crucial technologies by devoting more resources to fundamental research, enhancing the dominant position of enterprises in boosting technological advancements and stepping up financial support for innovation-oriented tech companies.

Their comments came after the tone-setting Central Economic Work Conference that concluded last week urged more efforts to make sci-tech innovation drive the development of new quality productive forces and better build its modern industrial system.

"Sci-tech innovation is the core element for developing new quality productive forces. The high-profile meeting sent a clear signal that China will further implement the innovation-driven development strategy and facilitate the in-depth integration of the real economy and the digital economy, so as to drive a shift from old growth drivers to new ones," said Luo Zhongwei, a researcher at the Chinese Academy of Social Sciences' Institute of Industrial Economics.

Luo said the move to accelerate the establishment of a modern industrial system is of significance in propelling the intelligent, high-end and green transformation of traditional industries, consolidating the economic recovery momentum and enhancing the country's buffer against external challenges.

To gain an upper hand in the increasingly intense international competition, Luo emphasized the need to improve indigenous innovation abilities by strengthening investment in technological frontiers, and vigorously develop strategic emerging sectors and future-oriented industries, including artificial intelligence, quantum computing, high-end equipment manufacturing, biotechnology, new energy and new materials.

"It is important to give full play to the role of enterprises, especially small and medium-sized ones, in bolstering sci-tech innovation, speeding up the industrial applications of innovation achievements and strengthening the training of high-tech talent," said Huang Hanquan, head of the Chinese Academy of Macroeconomic Research.

More measures should be taken to deepen reforms in fields like technology and education to create a favorable environment that encourages innovation, expands international cooperation and exchanges in sci-tech, and supports foreign enterprises in carrying out technological research and innovative practices in collaboration with Chinese research institutes and companies, Huang said.

In recent years, the country's strength in sci-tech innovation has taken a major leap. According to the World Intellectual Property Organization, China has moved up to 11th place in the rankings of the world's most innovative economies and remains the only middle-income economy in the top 30.

The country is home to 26 of the world's top 100 sci-tech innovation clusters, maintaining its position as the global leader for two consecutive years, based on the WIPO's Global Innovation Index 2024.

Sci-tech innovation is crucial for cultivating new growth engines and competitive advantages, said Zhu Keli, founding director of the China Institute of New Economy.

"China's sharpening focus on leveraging cutting-edge digital technologies, such as AI, 5G and big data, is conducive to propelling the upgrading of traditional industries, reducing the operational costs of enterprises and improving production efficiency."

Zhou Hongyi, founder of Chinese internet enterprise 360 Security Group, said building a modern industrial system is key to improving the country's economic strength.

The company will focus on digital security and AI, and bolster digital and intelligent upgrades in traditional industries, Zhou said.

"Looking ahead, the growth potential of China's economy will come from industrial upgrading driven by technological innovation, while AI technology represented by large language models will give birth to new production and business models in traditional fields such as manufacturing, agriculture and services, creating more social value," he added.

Chinese enterprises should strive for independent innovation and pour more capital into core technologies, in the face of tightened export control measures from some developed countries, said Li Dongsheng, founder and chairman of Chinese consumer electronics maker TCL Technology Group Corp.

Technology and innovation are key to bringing disruptive changes to the Chinese economy, while foreign companies can play a bigger role in supporting China's transformation in fields such as decarbonization, and digitalization of industrial and supply chains, said Denis Depoux, global managing director of global consultancy Roland Berger.

fanfeifei@chinadaily.com.cn