Synergy between innovation and industry called for

Editor's note: China is prioritizing the building of a modern industrial system over the next five years. Zheng Jianghuai, dean of Nanjing University's School of Economics, told Jiemian News that it does not negate the core position of technological innovation, but rather it aims to build a synergistic relationship where innovation leads industry and industry supports innovation. Below are excerpts of the interview. The views don't necessarily reflect those of China Daily.

Technological progress is the core driving force of economic growth. But the industrialization process of technological innovation cannot be separated from the support of a sound industrial system. Technological innovation is the engine of growth, while a modern industrial system is the transmission system. Only when the two are organically combined can the potential energy of technology be transformed into growth momentum.

The country will accelerate the development of strategic emerging industry clusters such as new energy, new materials, aerospace, and the low-altitude economy. This is a strategic choice based on the stage of China's economic development and the global competition landscape. It reflects a profound understanding of the laws governing the economic growth of large economies.

Without industrial support, technological innovation will remain in the laboratory, instead of becoming a lasting driving force for growth.

There are still bottlenecks in some fields due to a weak industrial foundation and lack of coordination across industry chains. For example, China is at the forefront in AI algorithms, but relies on imports for core components, such as high-end chips and basic software. This makes it difficult to turn the country's technological advantage into an industrial one.

By putting efforts to build a modernized industrial system at the top of the agenda, the central authorities aim to establish a support system that covers basic research, breakthroughs and pilot-scale testing of innovative technologies, as well as their industrial application.

Innovation is not a technological activity that stands on its own. It's the result of coordination between all entities in the industrial network. By strengthening the industrial system's ability to handle innovation, we can lower the cost of utilizing new technologies and promote their adoption at a faster pace.

Major countries are racing against each other to build a modernized industrial system. China aims to gain a strategic advantage in the reshaped international division of labor by prioritizing efforts to build a modernized industrial system.

The nature of new quality productive forces is an integration of technological innovation and its application in industries.

The central authorities emphasize the importance of achieving greater self-reliance and strength in science and technology, so that scientific and technological innovation will effectively boost the upgrade of the industrial system.

During the process, three pitfalls need to be avoided. First, equating a modern industrial system exclusively with high-end manufacturing and disregarding the development of agriculture, traditional industries and the service sector. Second, ignoring the role of market forces in resource allocation. And third, developing a uniform industrial layout without taking into account regional attributes and comparative advantages.

The aim is to form a positive cycle of "technological innovation-industrial upgrading-efficiency improvement". Enterprises will be encouraged to focus resources on breakthroughs in core technologies and improvements in product quality, promoting the industry's transformation from quantity to quality.