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Liu Yanhua: the R&D, Industrial and Market Chains
must be Linked to Realize innovation

Source: people.cn Author: Xie Xi Date: 2015-05-27

How to promote innovation as well as economic development in the context of the new round of economic restructuring, transformation and upgrading? “Realizing innovation-driven economic development all boils down to providing good services for innovation and only in this way can we unleash the driving force of innovation”. At the Seventh Guling Science Conference held in Fuzhou, Fujian Province, Liu Yanhua, Counsellor of the State Council and former Vice Minister of Science and Technology made a keynote speech entitled “innovation services in the context of innovation-driven development strategy in the new normal”.

What is the new normal? According to Liu Yanhua, the innovation-driven development strategy in the new normal is marked by a shift from high-speech economic growth to mid high-speed growth, improved and upgraded structure, considerably streamlined administration and further unleashed market vitality.

Then what is the status of innovation in China in the new normal? Liu Yanhua cited the innovation models in the United States, Israel and the ROK in analyzing the urgent challenges facing China’s innovation-driven strategy.

He said that to build the system for providing services for innovation, the government and relevant departments need to forge a bridge between science and technology on one hand and the economy on the other, define the different responsibilities and roles and set up the framework system involving technology market, market exploration, patent protection and technological support.

He suggested introducing ideas and practices for innovation services from developed countries. “Learning from the advanced innovation approaches from other countries is a priority”.

He said that the innovation approaches of the United States lead the world, with its greatest advantage being human resources, education and culture. In contrast, China’s weaknesses lie in its huge population, biggest number of neighboring countries and poor mechanisms for human resources development. He suggested that China should draw upon the US practices in educational system. “Education should be changed in a way that focuses teaching on passion, encouragement, imagination, discerning power, judgment and seeking opportunities. Courses should be tailored to the interest and passion of the young and creative guidance should be given to research on market demand and future demand so as to create consumption and build reserves for the future.”

According to his analysis, the key to Germany keeping its leading edge in the world is the innovation services sector, which is oriented to high and new tech companies, research institutions and universities and provides services for the industrialization and commercialization of new and high technologies. At the same time, Germany gives priority to market prediction, exploration of new markets and the occupation of realistic markets. In Germany, the government uses legal, taxation and fiscal subsidies and other means to encourage all kinds of innovation services organizations to provide extensive consulting and services for technology innovation of companies. In addition, good reputation is a basic guarantee for maintaining long-term customers.

“To provide good services for innovation, we must build a bridge between science and technology on one hand and economy on the other and form a replicable innovation platform. Innovation services should be a system involving input, market exploration, information development and innovation policy and covering technology, finance, talent, industry, management, law, policy and market.” Liu Yanhua believes that the innovation management model shall be changed so that internal driving forces are fostered and the enthusiasm of the government, businesses and individuals is all mobilized with the potential fully tapped.

How to realize innovation in the final analysis? Liu Yanhua maintained that “in the process of turning creative ideas into value,  innovation and competition must be closely tied together. To realize innovation, there must be innovative thinking and only when the R&D chain, industrial chain and market chain are linked can the innovation goal be realized.”