Innovation critical economic growth driver

Editor's note: China achieved significant progress in technological innovation during the past year. Zheng Yongnian, dean of the School of Public Policy of The Chinese University of Hong Kong, Shenzhen, spoke to the 21st Century Business Herald about the country's strengths in innovation. Below are excerpts of the interview. The views don't necessarily reflect those of China Daily.

The importance of technological innovation has risen phenomenally due to China's domestic situation as well as the international context. From a domestic perspective, the shift of China's growth pattern toward high-quality development requires technological innovation. Since China started reform and opening-up, the country has benefited from its cost advantages in labor, land and other factors. The country has achieved rapid growth by investing in infrastructure, joining the World Trade Organization and expanding exports.

However, such cost advantages are no longer sufficient to support further growth. At this stage of the country's development, technological innovation has become the new and most critical driving force.

Globally speaking, the experience of Europe, the United States, Japan and the Four Asian Tigers has shown that if an economy aims to grow from a middle-income one into a high-income one, it needs technological progress to drive industrial upgrading.

Science and technology are central to the current competition among major countries. In the early stages of its industrialization, China mainly relied on bringing in mature technologies from developed countries. After gathering decades of technological experience, it is starting to see a surge in original innovation.

The concept of "new quality productive forces" reflects the current stage of China's industrial development. The country has formed complete and robust industrial systems in many fields.

For example, for artificial intelligence, the cost of developing a large model can be so high that it is difficult for many small and medium-sized economies to bear. AI development also requires a massive supply of data, which may be another daunting requirement for such economies.

Currently, there is an urgent need to put AI technologies around the world into real use, highlighting the importance of a complete manufacturing base. China's vast manufacturing system provides a broad testing ground as well as a large demand for innovation in AI technologies.

It's likely that a large number of companies will rush in at the beginning of the industrial revolution centered on AI, and even create "bubbles". But in the end, only the fittest will survive the competition.

The growth of the mobile phone sector in China is an example. There were many brands in the early stages of the sector's development, but ultimately only a few companies that could withstand the tests of technology, management and the market survived.

Both an "effective market" and a "proactive government" play important roles in the emergence of new technologies. But a "capable society" is equally important. If a society lacks the willingness and ability to embrace new technologies, even the most advanced technologies will struggle to take root.

The people of China generally have a high level of acceptance of and learning ability for new technologies, providing very favorable conditions for the rapid application of the technologies.

China needs to remain committed to opening up, attract resources for innovation and promote competition and technological progress. Over the past few decades, the country has accelerated its modernization drive by opening-up to the world and bringing in advanced technologies. There will be no progress without openness because no country can develop in isolation.