There are 10 outstanding points from the recent Party Central Committee’s and State Council’s strategy of Increasing Institutional Reforms and Implementing Innovation-driven Development as follows:

1: Scientific and technical innovation is at the center of the development

The authors said that scientific and technological innovation should be at the core of national development plans that reform the science, technology, economic, and social systems and push innovation in science, technology, management, organization, business models, branding, and military and civilian integration and use a go-global approach for greater unity and coordinated development. The authors clearly stated that innovation-driven development should be demand oriented, with priority given to talent, by sticking to rules and there needs to be an institutional environment and policy and law system in line with innovation-driven development, by 2020.

2: Break the trade monopoly and market segmentation

Removing the industry monopoly and market segmentation is the key to creating a level playing field for innovation and the authors said that the reform of monopolistic industries needs to speed up, with competitive businesses opened up, and an innovative, unified, transparent, orderly and standard market environment encouraged. They stated clearly that all parties need to enforce the laws against monopolies, remove local protectionism, remove unnecessary regulations or practices for a unified national market, deal with inappropriate government subsidies or administration that restricts or destroys competition, and a system for fair competition developed. In addition, there needs to be better industrial access and a no-go list drawn up. Unreasonable barriers that get in the way of new technology, product and business development need to be removed.

3: Award top personnel to drive innovation

The authors suggest that scientific researchers get subsidies to stimulate the application of discoveries and that the salaries of top officials and technicians be raised from the old 20-percent of profits to 50-percent and that enterprises be asked to encourage their scientists‘ enthusiasm for innovation by offering stock options and dividends and scientists at small–to-mid-sized high-tech companies who get income from stocks can pay the tax in installments over a five-year period.

4: Study Angel investment regulations

The authors say that there need to be more studies of Angel investment to use finance innovations to drive technical innovations and that regulations should cover investment in innovations at the start-up stage, with proper tax incentives. At the same time, there should be more capital market support for technical innovation and faster enterprise market reforms, with regional equity markets developed to serve micro-to-small businesses.

5: Give a greater say to business

How do we get enterprises to become major innovative decision-makers? The authors suggest that high-level dialogues and consultations be developed so that enterprises and entrepreneurs can play an important part in national decision-making and that more enterprises should be encouraged to study and developing national innovation plans, policies, and standards. At the same time, industrial experts and entrepreneurs can play a bigger role in expert consultation groups.

6: Study skilled migrant worker conditions

To keep talented personnel in China, the authors have called for more a more attractive talent search system, with better policies for foreign technologists so they can get a permanent resident permit, and greater understanding of skilled migrant workers. Chinese and senior foreigners need greater equality in starting a scientific and technological enterprise and other activities and in getting a permanent resident permit and more top talent worldwide, such as head scientists, need to be invited based on national needs.

7: Improve the GDP assessments

The authors propose that better GDP estimates that indicate innovation’s economic value be developed and that the State-owned enterprise performance evaluations be improved by giving more weight to technical innovation and innovation-driven development in their assessment.

8: Use the market for innovation resource allocation

The authors clearly state that the market should play a major role in technical R&D decisions and innovation resource allocation, and that the innovative decision-making should be adjusted with more support for finance and tax policies, and tax reductions. Finance and tax policies will gradually be adjusted to national input for enterprise innovation.

9: Pushing the reforms

Collectivization and marketization are two important areas in scientific research institute reforms and the authors say that institutes involved in general industrial scientific research can be become industrial R&D group, while institutions that focus on production can be encouraged to increase market reforms. Mixed ownership needs to be encouraged through capital introduction or listing, and industrial technology associations established.

10: Increasing industry-university-research integration

To eliminate any barriers to talent and to promote industry-university-research integration, the authors propose that scientists at certain institutions do innovative work with companies or even start a business while maintaining their scientific R&D and salary at their institution. Institutions of higher learning and scientific research institutes can hold various posts to attract entrepreneurs and scientists with innovative skills. And xork experience at enterprises is considered necessary in hiring new teachers with an engineering background.