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Innovation-driven development has achieved remarkable results, and the construction of a scientific and technological power has been vigorously promoted -- the twelfth report of the series of reports on the achievements of economic and social development in the past 75 years of New China

Science and technology are the foundation of a country's prosperity, and innovation is the soul of national progress. Over the past 75 years since the founding of the People's Republic of China, the mainland's scientific and technological undertakings have undergone a magnificent journey from "marching toward science" to proposing that "science and technology are the primary productive forces", from implementing the strategy of rejuvenating the country through science and education to building an innovative country, and from comprehensively implementing the innovation-driven development strategy to embarking on a new journey of building a strong country in science and technology. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping as the core has insisted on putting scientific and technological innovation at the core of the overall national development, put forward scientific and technological innovation as the core element of the development of new quality productive forces, carried out overall planning and systematic deployment for the construction of a scientific and technological power, and promoted the mainland's scientific and technological undertakings to continue to make new progress.

First, the national scientific and technological innovation system has gradually developed and matured

(1) The strategic position of scientific and technological innovation is increasingly consolidated

Since the founding of the People's Republic of China, the development of science and technology has always been an important part of the country's major development strategy system. The CPC Central Committee has firmly grasped the general trend of the world's scientific, technological, and economic development, and has made major strategic arrangements for the development of science and technology in light of the mainland's actual conditions. In the early days of the founding of the People's Republic of China, the "Outline of the Long-term Plan for the Development of Science and Technology from 1956 to 1967" was compiled, which for the first time made important arrangements for the development of science and technology at the national level. In the early days of reform and opening up, the "Outline of the National Science and Technology Development Plan for 1978-1985" was formulated, which emphasized for the first time that the development of science and technology should be combined with economic construction. In 2005, the Outline of the National Medium- and Long-Term Science and Technology Development Plan (2006-2020) was promulgated, emphasizing the full play of the supporting and leading role of science and technology in economic and social development. In the new era, the National Medium and Long-term Science and Technology Development Plan (2021-2035) has been formulated, emphasizing the need to strengthen basic scientific research and accelerate the realization of high-level scientific and technological self-reliance and self-reliance.

(2) The pattern of collaborative innovation of multiple subjects has gradually taken shape

In 1949, the Chinese Academy of Sciences was established, and various regions and departments began to establish a number of scientific research institutions. By around 1966, the number of scientific research institutions in the country had increased from more than 30 at the beginning of the founding of the People's Republic of China to more than 1,700, and a science and technology system composed of the Chinese Academy of Sciences, universities, industrial departments, local scientific research units, and national defense departments had initially taken shape. After the reform and opening up, the mainland has deepened the reform of the science and technology system, and actively promoted the integration of science and technology with the economy through the reform of the science and technology funding system, the cultivation of the technology trading market, the promotion of the integration of military and civilian development, and the encouragement of the development of private science and technology enterprises. Since the 18th National Congress of the Communist Party of China, the construction of the national innovation system has been continuously improved and accelerated, and a collaborative innovation system with science and technology enterprises, scientific research institutes and colleges and universities as the main body has gradually been formed, and a number of new R&D institutions with diversified investment, diversified models and market-oriented operation characteristics have emerged. Among them, the national strategic scientific and technological forces, represented by national laboratories, research universities, first-class scientific research institutes, and leading scientific and technological enterprises, are the backbone of the mainland's scientific and technological research.

(3) The national key science and technology plan system is advancing in an orderly manner

The science and technology plan is an important way for the government to support scientific and technological innovation activities, and it is an important starting point to guide the effective allocation of various resources to major scientific and technological fields. In 1956, the mainland focused on sorting out 57 important scientific and technological tasks and more than 600 central issues, and put forward 12 major tasks of key significance, which became the prototype of the national science and technology planning system. After the reform and opening up, the national science and technology planning system has been continuously adjusted, and by the "Twelfth Five-Year Plan" period, a system with major special projects and basic plans as the core has been basically formed. Major projects provide important support for core technology breakthroughs and resource integration in key areas of the mainland, and the basic plans include the National Key Basic Research and Development (973) Program and the National High-tech Research and Development (863) Program. In 2014, the mainland science and technology planning system was further integrated into five types of science and technology plans, including the National Natural Science Foundation of China, the National Science and Technology Major Project, the National Key R&D Program, the Technological Innovation Guidance Special Project (Fund), and the Base and Talent Project, which have become an important channel to promote the implementation of major national scientific and technological innovation needs in the new era.

(4) The strategic layout of basic research has been continuously optimized

After the founding of the People's Republic of China, the mainland successively achieved a number of major scientific and technological achievements that caught up with the world level, such as the successful explosion of the first atomic bomb device, the successful launch of the first carrier rocket designed and manufactured by itself, and the world's first artificial synthesis of bovine insulin. After the reform and opening up, basic research in mainland China has gradually formed a relatively complete disciplinary layout, a number of emerging interdisciplinary disciplines have developed rapidly, and several fields have entered the world's advanced ranks. Since the 18th National Congress of the Communist Party of China, the mainland has further strengthened its strategic layout of basic research, and carried out research on major scientific issues in many fields such as stem cells and transformation, nanotechnology, quantum regulation and quantum information, protein and life process regulation, and synthetic biology. At the same time, it actively promotes the construction of a series of major scientific research infrastructure, such as the 500-meter aperture spherical radio telescope (FAST), the magnetic confinement nuclear fusion experimental device (EAST), the China Spallation Neutron Source, and the neutrino laboratory. Relying on major scientific facilities and infrastructure platforms, the mainland's scientific research capabilities in basic frontier fields such as space exploration, nuclear fusion research, and microscopic world research have been significantly improved.

Second, the accumulation of investment factors in scientific and technological innovation has been accelerated

(1) Historic breakthroughs have been made in R&D investment

In 2023, the scale of investment in research and experimental development (R&D) in mainland China will reach 3,327.8 billion yuan[1], an increase of 233 times over 1991 and an average annual growth rate of 18.6%. Since the 18th National Congress of the Communist Party of China, the mainland has accelerated the implementation of the innovation-driven development strategy, and the R&D expenditure of the whole society has accelerated, and the R&D expenditure of the whole society has reached 2 trillion yuan and 3 trillion yuan in 2019 and 2022, respectively, becoming the second largest R&D investment country in the world after United States. The intensity of R&D spending[2] increased from 0.6% in 1991 to 2.64% in 2023, ranking 12th in the world, and the gap with OECD countries (2.7%) has been further narrowed[3].

(2) The dividends of human resources and scientific and technological innovation continue to be released

Talent is the primary resource for scientific and technological innovation, and the quality of the mainland's working-age population has been steadily improved, providing a rich talent reserve for innovation and development. According to the data of the seventh national population census, in 2020, the proportion of the population with college education or above in mainland China reached 23.6%, an increase of 11.3 percentage points. With the implementation of the strategy of rejuvenating the country through science and education and strengthening the country with talents, the contingent of scientific and technological innovation talents on the mainland has continued to grow. Since 1991, the total number of R&D personnel in mainland China in terms of full-time workload has increased tenfold, exceeding 3 million person-years in 2012, surpassing United States in 2013, and reaching 7.24 million person-years in 2023, ranking first in the world for 11 consecutive years.

(3) The guidance and support of fiscal and taxation policies have been continuously enhanced

The mainland has continuously optimized and adjusted fiscal and taxation policies, strengthened support for scientific and technological innovation, and encouraged enterprises to continuously increase R&D investment. Since the major reform of the science and technology appropriation system in 1985, the national fiscal expenditure on science and technology has grown steadily, and its proportion in the national public financial expenditure has remained stable. In 2012 and 2019, fiscal spending on science and technology reached 500 billion yuan and 1 trillion yuan respectively, reaching 1.1 trillion yuan in 2022. Comprehensively use preferential tax measures to encourage enterprises to increase R&D investment. In 1996, the policy of additional deduction of R&D expenses of enterprises was implemented, and in recent years, the policy of additional deduction of R&D expenses of enterprises has continued to expand the scope of application, increase the deduction ratio, and simplify the declaration procedures, and from the perspective of the prepayment declaration of enterprise income tax in 2023, the cumulative amount of R&D expenses deducted by enterprises will reach 1.85 trillion yuan[4]. In addition, a series of tax policies, including preferential income tax policies for high-tech enterprises, have effectively reduced the cost of R&D activities of enterprises.

(4) A multi-level science and technology financial support system is gradually taking shape

Since the 18th National Congress of the Communist Party of China, the mainland has continued to deepen the supply-side structural reform of science and technology finance, and a multi-level science and technology financial system has gradually developed. On the one hand, the direct financing channels are more diversified, the venture capital and venture capital market for start-up technology-based enterprises or teams is gradually growing, and the stock market for start-up or growth-stage technology-based enterprises is constantly innovating. In 2013, the "New Third Board" was established, and in 2019, the "Science and Technology Innovation Board" was established, focusing on meeting the direct financing needs of science and technology enterprises. By the end of 2023, there were 566 listed companies on the STAR Market, with a total market capitalization of 6.2 trillion yuan. In 2018, the Hong Kong Stock Exchange allowed biotech companies with pre-revenue profits to submit listing applications, and by the end of 2023, a total of 64 biotech companies had listed on the Hong Kong stock market through the rules. On the other hand, the scope of indirect financing has expanded, and the focus and support of bank credit for science and technology enterprises have been increased. At the end of 2023, 212,000 technology-based SMEs and 218,000 high-tech enterprises were supported by loans, with the balance of loans in local and foreign currencies reaching RMB2.5 trillion and RMB13.6 trillion[5].

(5) The role of the scientific and technological innovation service system has been more fully played

In 1981, the mainland proposed for the first time the paid transfer of scientific and technological achievements, and the technology trading market began to develop. In 1996, the Law on Promoting the Transformation of Scientific and Technological Achievements was enacted in People's Republic of China, and in 2015, the law was revised and supporting policies and action plans were formulated, and the development and growth of the technology factor market was accelerated. In 2023, there will be 950,000 contracts in the mainland technology market, with a total turnover of 6.1 trillion yuan, which is 3.4 times and 9.6 times that of 2012, respectively. In 2016, the construction of science and technology service institutions such as incubators and maker spaces was promoted, and by the end of 2022, there were 6,659 science and technology business incubators at all levels and 327,000 enterprises in incubators.

Third, major scientific and technological innovation achievements continue to emerge

(1) Cutting-edge scientific discoveries and original scientific and technological achievements are constantly emerging

The mainland has continuously increased its investment in the field of basic research. The National Natural Science Foundation of China was established in 1986, and in 2023, the National Natural Science Foundation of China will fund a total of 52,500 projects, with a project funding scale of more than 30 billion yuan. The investment in basic research in the whole society has grown rapidly. In 2023, the basic research funding will be 221.2 billion yuan, with an average annual growth rate of 18.7% from 1996 to 2023. Basic research funding accounted for 6.65% of R&D expenditure. Since the 18th National Congress of the Communist Party of China, a series of original achievements in basic and frontier fields have been emerging, and the mainland has made a number of major original achievements in the fields of quantum science and technology, life science, material science and space science. At the same time, it has also made a series of major breakthroughs in the fields of manned spaceflight, lunar exploration, deep-sea exploration, and deep-earth exploration, and the mainland is now in the leading position in the world in manned spaceflight and lunar exploration technology.

(2) Papers, patents, direct scientific research outputs, and fruitful results

Mainland scientific papers have achieved fruitful results and have become an important contributor to global knowledge innovation. In 2021, the Science Citation Index (SCI), Engineering Index (EI) and Conference Proceedings Index (CPCI), the three major international search tools, included 612,000, 368,000 and 30,000 scientific research papers from mainland China, ranking first, first and second in the world, respectively. The quality of scientific and technological papers has been greatly improved, and in 2022, the number of citations of scientific and technological papers in mainland China ranked second in the world [6]. The quantity and quality of intellectual property output such as patents in mainland China have increased. In 2023, 921,000 invention patents will be granted in mainland China, accounting for 25.2% of all patents authorized, an increase of 7.9 percentage points over 2012. By the end of 2023, the number of effective invention patents in mainland China will reach 4.015 million, becoming the first country in the world to exceed 4 million valid invention patents. By the end of 2023, the number of high-value invention patents per 10,000 people in mainland China will reach 11.8, an increase of 5.5 from the end of 2020.

(3) Remarkable achievements in the market application of technological achievements in key areas

In the field of information and communication, China Mobile has achieved a leap from 2G follow-up and 5G commercial use to 6G technology leadership. In 2023, a total of 2.495 million computer software copyright registrations will be completed across the country, and the number and growth rate of registrations will hit a new high in five years. In recent years, the AIGC industry in mainland China has developed rapidly, and leading Internet companies such as Baidu (Wenxin), Alibaba (Tongyi), Tencent (Mixed Yuan) and Huawei (Pangu) have made key technological progress in AI large models. In the field of agricultural breeding, since the establishment of the new plant variety protection system in 1997, by the end of 2023, the cumulative number of applications for the rights of new agricultural plant varieties has reached 77,000, and the cumulative number of authorizations has exceeded 30,000, of which self-selected varieties account for nearly 94%, making a significant contribution to ensuring national food security at the source [7]. In the field of medicine and health, since the reform of the drug registration management system in 2020, the R&D and marketing process of innovative drugs in mainland China has accelerated, and by the end of 2023, nearly 150 varieties of Class 1 innovative drugs have been approved for marketing [8].

Fourth, scientific and technological innovation serves the high-quality development of the economy

(1) The main role of enterprises in scientific and technological innovation has been continuously consolidated and improved

Since the reform and opening up, especially since the 18th National Congress of the Communist Party of China, enterprises have increasingly become the main body of scientific and technological innovation and industrial innovation. In 2023, the mainland R&D expenditure of enterprise funds will reach 2.6 trillion yuan, with an average annual growth rate of 11.5% from 2013 to 2023, and enterprise funds will account for more than 75% of the total R&D expenditure of the whole society, and the contribution rate to the growth of the whole society's R&D expenditure will remain about 80% all year round. The steady increase in the intensity of R&D investment has laid a solid foundation for the innovation and development of mainland industries, and cultivated a large number of industry leaders with leading technology and international competitiveness. Among the top 2500 global R&D investment, the number of companies headquartered in China has increased from 199 in 2013 to 679 in 2022, surpassing Japan and the European Union to rank second in the world[9]. At the same time, a large number of unicorn companies with high-growth business models and huge market potential have emerged in mainland China. By the end of 2023, 340 of the world's 1,453 unicorns were on the mainland, ranking second in the world[10].

(2) The industrial structure continues to be optimized and upgraded

Scientific and technological innovation empowers the development of new quality productivity, and new kinetic energy has become an important engine to lead high-quality development. In 2023, the added value of the mainland's "three new" economy will be 22.4 trillion yuan, accounting for 17.73% of GDP, an increase of 2.4 percentage points from 2016 [11]. In 2022, the added value of patent-intensive industries will be 15.3 trillion yuan, accounting for 12.71% of GDP, an increase of 1.11 percentage points over 2018. Scientific and technological innovation has helped the supply-side structural reform to continue to deepen, and the quality of product supply has been continuously improved. In 2023, the sales revenue of new products will be 34.1 trillion yuan, with an average annual growth rate of 10.7% from 2013 to 2023. The sales revenue of new products accounted for 25.3% of operating income, an increase of 11.7 percentage points over 2012. Digital technology innovation empowers thousands of industries, and the pace of transformation of key industries is accelerating. By the end of 2023, 421 national-level intelligent manufacturing demonstration factories and more than 10,000 provincial-level digital workshops and smart factories have been cultivated.

(3) New advantages in international industrial competition are constantly forming

Scientific and technological innovation has greatly enhanced the international competitiveness of the mainland's industries, and the scale of foreign trade in technology- and knowledge-intensive products has continued to expand. In 2022, the total import and export trade of high-tech products in mainland China will be 1.7 trillion US dollars, with an average annual growth rate of 4.5% since 2012; It accounted for 34.1% of the total import and export trade of goods, an increase of 5.4 percentage points over 2012. In 2022, the import and export of knowledge-intensive services in mainland China will be 2.5 trillion yuan, with an average annual growth rate of 9.1% since 2012; It accounted for 41.9% of the total import and export of service trade, an increase of 8.3 percentage points over 2012. In recent years, the mainland has established an international competitive advantage in new energy technology innovation and product and equipment manufacturing. The performance indicators such as the photoelectric conversion efficiency of solar cells and the energy density of lithium-ion power batteries are at the international leading level, and the key components of new energy equipment such as photovoltaic modules and power batteries have a dominant position in the global market share.

5. Scientific and technological innovation serves the major national development strategy

(1) Scientific and technological innovation promotes regional coordination and common development

The construction of a national high-tech industrial development zone is an important measure for the mainland to promote the regional coordinated development strategy. In 1988, the construction of the first national high-tech industrial development zone was approved, and in 2023, the number of national high-tech zones in mainland China will grow to 178, and the number of enterprises in the zone will exceed 200,000. The construction and growth of regional innovation highlands are accelerating, the construction of international science and technology innovation centers in Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area has been further promoted, and comprehensive national science centers such as Huairou in Beijing, Zhangjiang in Shanghai and Hefei in Anhui Province have their own characteristics. As an important source of scientific and technological innovation and a growth pole for regional development in mainland China, the international science and technology innovation center and the comprehensive national science center radiate and drive regional and even national innovation and development, and deeply participate in global scientific and technological and industrial competition and cooperation.

(2) Scientific and technological innovation has always adhered to the orientation of people's lives and health

In recent years, the mainland has conquered key core technologies in key areas such as the creation of new drugs and the prevention and treatment of infectious diseases, and actively played a leading role in improving people's livelihood through science and technology. In the field of new drug creation, since the reform of the drug registration management system in 2020, the mainland has set up accelerated marketing procedures for drugs such as breakthrough therapy drugs, conditional approval, and priority review and approval, focusing on drugs with outstanding clinical value, drugs for rare diseases, and drugs for children. Since 2020, a number of varieties have been approved for marketing through the above-mentioned accelerated marketing procedures, and more innovative drugs can benefit patients faster. In the prevention and control of infectious diseases, especially in the process of prevention and control of the new crown epidemic, the mainland isolated the virus strain as soon as possible, quickly achieved a breakthrough in detection reagents, and laid out multiple technical routes for vaccine research and development at the same time. Among them, after the successful application of the widely concerned mRNA technology route to the new crown vaccine, mainland enterprises are actively deploying the research and development of vaccines such as respiratory syncytial virus and herpes zoster, and in 2024, one new drug of respiratory syncytial virus mRNA vaccine has obtained clinical implicit approval, which will provide a new choice for the prevention and treatment of infectious diseases in China.

(3) Scientific and technological innovation supports the orderly progress of carbon peak and carbon neutrality

In the field of energy supply, a diversified supply of new energy such as hydropower, wind energy, solar energy, nuclear energy, and hydrogen energy has been gradually formed with the support of smart grids. In 2023, the installed capacity of renewable energy in mainland China will surpass that of thermal power, accounting for 52.0% of the country's total installed power generation capacity. Among them, wind power and photovoltaic power generation account for more than 60% of the installed capacity of renewable energy. The construction of smart grid is at the international advanced level in terms of distributed renewable energy transmission and consumption capacity, distributed new energy grid integration, large-capacity energy storage system construction and microgrid technology, which strongly supports the implementation of the mainland's energy conservation and emission reduction strategy and industrial transformation and upgrading. In the field of new energy consumption, since the introduction and implementation of the "Energy-saving and New Energy Vehicle Industry Development Plan" in 2012, the new energy industry represented by new energy vehicles has made remarkable achievements. In 2023, the production and sales of new energy vehicles in mainland China have ranked first in the world for nine consecutive years, and mainland has become an important guiding force in the electrification transformation of the global automotive industry.

Over the past 75 years, under the strong leadership of the CPC Central Committee, innovation has been deeply rooted in the hearts of the people, and innovation and development have become the key choices for us to cope with severe and complex internal and external challenges. At present, the national innovation system with Chinese characteristics is becoming more and more perfect, the reform of the scientific and technological system is deepening, the gathering of innovative elements is accelerating, the momentum of economic and social development is abundant, the self-reliance and self-improvement of science and technology are vigorously promoted, and the pace of building a strong country in science and technology is steady, laying a solid foundation for building a modern socialist country in an all-round way and realizing the great rejuvenation of the Chinese nation.

Concentrate:

[1] The R&D funding and basic research funding for 2023 are preliminary figures for the year.

[2]R&D经费支出与GDP之比。

[3] Data from OECD database.

[4] Data from the State Administration of Taxation.

[5] Data from the People's Bank of China.

[6] Data from the Basic Science Indicators Database.

[7] Data from the Ministry of Agriculture and Rural Affairs.

8. Data from the National Center for Drug Evaluation.

[9] The data comes from the European Union's Global Industrial R&D Investment Scoreboard.

[10] The data comes from the Hurun Research Institute's Global Unicorn Rankings.

[11] In 2016, the National Bureau of Statistics (NBS) calculated the added value of the "three new" economy for the first time, and in 2018, it measured the added value of patent-intensive industries for the first time.

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