The times we are currently in is characterized with rapid changes and vigorous development of science and technology. The new science and technology revolution featuring info-tech, biotech and nano-tech is pushing human development to a new stage. Each key sci-tech breakthrough will bring a profound influence on human production and their lives. The economic strength, life quality, comprehensive national power, international competitiveness and the status of one country or nation in global political and economic framework depend unexceptionally on the development and progress of science and technology.  Invention, tech-innovation and tech-result-transfer are highly valued by every government unprecedentedly and pursed by the whole society.

The Chinese government has attached great importance to the activities of scientific research, tech-invention and innovation. The Constitution of China stipulates "the nation developing the cause of the natural science" and awarding the achievements of scientific research and technological invention. After 50 years construction, especially 20 plus years reform and opening up, China has established a scientific and technological research system with relatively complete disciplines. Now China has more than 4,000 independent research and development institutions, 2,500 higher learning scientific research institutions, as well as 14,000 technology development institutions affiliated to the enterprises. More than 900,000 people are engaged directly in the activities of research and development. In 2000 the total expenditure on R & D of the whole society reached 1.0% of that year GDP with RMB89.6 billion; it was among the leading group in the developing countries. 10% of each year's 30000 key sci-tech results reaches or is close to the world advanced level. Patent issuance is increasing. There was over 110,000 issuance in 2001. The number of papers published by our researchers keeps the 8th in the world. The supporting rule of science and technology to economical and social development is remarkably reinforced with increasingly improvement of sci-tech results dissemination. In 2001, trading volume of tech-market exceeded RMB75 billion; that year's total revenue of National High-tech Industrial Zones reached RMB1200 billion.

Our country and people benefit a lot from the sci-tech staff's invention and creation. In the field of agriculture, we have cultivated over 5000 new varieties and new combinations. The key agricultural varieties has been replaced five to seven times nationwide.  In particular, the tech-promotion of hybrid rice, plastic film covering, paddy non-irrigation growing and less-density planting greatly improves the grain output and solves food-shortage problem of the one-forth world population. The hybrid rice cultivated by world renowned hybrid rice expert Academician YUAN Longping enables the increase of grain output to 100 billion jin over past 20 years. Its promotion to many countries in Asia, Africa and America contributes greatly to solving food shortage problem in the world.

In industrial area, the implementation of sci-tech tackling programs has solved a good batch of key and comprehensive tech-problems in industry, developed industrial equipment, disseminated a good amount of advanced achievements and supported the tech-renovation and key project construction.

In the field of high-tech research, based on years research accumulation, a large amount of key achievements with high market potential, already formed or having possibility of forming big industry have come out, including large-scale programmed-switchboard, high performance computers, industrial robots, bio-engineering vaccines, medicines and functional materials. The whole industry upgrade is propelled by those high technology like CIMS, clean production and participation of human genome study.

The 21st Century is sci-tech-innovation-oriented one. China has set up "vitalizing nation through science and technology" and  sustainable development as the two basic development strategies. The implementation of vitalizing nation through science and technology is enhanced. Last year the Tenth Five Year Plan of Science and Technology Development began to implement with increased government input. The allotted national input to high-tech R & D during the Tenth Five Year Plan doubles compared with the one of the former 15 years. These programs include: Key Basic Research Development Program (Climbing Program) aiming at strengthening basic research, National Natural Science Foundation to support the scientists in their own selected projects,  High-tech Research and Development Program (863 Program) and "Torch Program" featuring development of high-tech and its industries, "Spark Program", Key Science and Technology Achievements Promotion Program, Technological Reform Program and "the 21st Century Agenda of China" aiming at the sustainable development and the etc.

In order to create a policy environment and society beneficial to invention and innovation, the National Technological Innovation Conference was held and "the Resolution on Strengthening Technological Innovation, Developing High Technology and Achieving its Industrialization" was published in August 1999. A relatively perfect policy system encouraging invention, innovation and tech-transfer was formed. It covers the whole process of tech-innovation and industrialization. It mainly contains the following:

1. To encourage more research input, to push forward building a tech-innovation system of enterprise-orientation.  A certain ratio of the R&D input by the enterprise can be deducted from its income tax. The instrument and equipment for scientific research imported by the scientific research institution, enterprise and higher learning institution can be exempted from value added tax, and enjoy reduction or exemption from customs duties. The depreciation for the pilot equipment can be accelerated. From 1999 the government began to set up Tech-Innovation Foundation for Small-Medium-Enterprises (SMEs) to support SMEs' research and development. The Foundation provides  RMB 1 billion allocation and RMB 2 billion loan to assist the SMEs' tech-innovation projects. To implement the reform of transfering state-owned sci-tech institutions as enterprises or merged into enterprises (or groups) to conduct tech-development and application.

2. To encourage transferring technology results to production areas. By means of reducing operational expenses of state-owned sci-tech institutions, to propel their R & D facing market and serving directly enterprises and society starting from 1985;  to cultivate and set up tech-market, to establish tech-transaction and technology property rights  trading network bridging the cooperation among tech-inventors, those demanding technology and investors; to encourage tech-result shares, to set up invisible-asset evaluation system, to realize tech-capitalization; to perfect intellectual property right (IPR) legal system, having published and modified a set of IPR protection laws and regulations like Patent Law, Copy Right Law, Computer Software Protection Regulation which provide effective legal guarantee towards invention and tech-innovation activities. Income from the activities of technology transfer, technology development, technology consultation and technology service enjoys exemption from business tax and income tax.

3. To encourage scientific and technical personnel to make inventions, apply and implement tech-results. The government has reformed  national scientific and technical award system, deepened income system for sci-tech staff, set up an income allocation policy combining production key factors of technology and management in order to show creative value of tech-staff. In order to award those civilians, organizations who make excellent contributions to sci-tech progresses, and to stimulate their eagerness and creativity, the State Council sets up five state scientific and technological awards: the State Highest Science and Technology Award, State Natural Science Award,  State Technology Invention Award, State Science and Technology Progress Award, International Science and Technology Cooperation Award of PRC.  To reform and adjust state science and technology award policies, to turn over the tendency of valuing paper publication, to encourage applied results and patent application; if science and technology staff transfers their professional tech-results, no less than 20% of the transfer income or the ratio of no less than 20% shares value of the transfer should be given to inventor and relative staff. To allow tech-staff to leave and create their own business. To pilot in some high-tech enterprises, employees, especially those tech-staff and managerial personnel who make great contributions are given a certain ratio of added value from state-owned assets as award.

 4. To reform and improve IPR management system of national science and technology plans. Except those projects involving key national interests, IPR of the state entrusted projects will be given to the project institution and the state reserves its free utilization right; IPR protection is among the whole project management process in various state science and technology plans and becomes an important content and evaluation indicator of plan management.

5. To encourage the development of high-tech industry. To set up 53 state-level high-tech industrial development zones; income tax of those enterprises carrying out R & D and production and operation in high-tech areas which are encouraged by the state, are reduced and exempted. Reduced value-added tax are exerted to high-tech products like software and integrated circuit. To set up university science and technology parks, overseas students' parks, software parks, creation service centers, high-tech business incubators in order to provide a better environment and service to innovation and business of high-tech talents. To vigorously develop agency service organizations relevant to tech-innovation including tech-info advisory service, IPR evaluation organizations, technology transaction institutions; Besides, venture capital investment companies are emerging which provides capital for tech-innovative enterprises. Chinese government is preparing to create second-board market giving venture capital investors a withdrawal channel.

Respecting knowledge and science and talents are traditional Chinese virtues. To encourage innovation and protect invention is the consistent policy of the authorities. Under today's political stability and prosperity, Chinese science world self-consciously takes creating and developing advanced productivity as their own mission, serving modernization construction as their own responsibility, and benefiting human beings from science and knowledge as their pursuit. Chinese government is trying hard to create a mechanism and environment beneficial to invention and innovation, a good study, work, mechanism, policy and environment condition enabling the emergence of excellent young talents, to advocate an innovative spirit of being the first, brave, persistent and of fearing no failure and to encourage exploring unknown world and objective truth.

Developing science and technology is a magnificent undertaking of the Chinese nation as well as the whole mankind. In history, the Chinese nation created splendid ancient civilization depending on  diligence and wisdom. Today, under the guidance of the strategic thought of "Science and technology is the first productive force", the Chinese science and technology sector is willing to join hands with foreign colleagues and all the friends to create the brilliance of the 21st century.

 

2004-01-17

2004-01-17