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Speed up Establishment of Market-Oriented Technological Innovation Mechanism
With quickening of the pace of economic globalization, readjustment of the global industrial structure has been further expedited. Mergers and re-organizations, based mainly on the method of getting the strong to unite with the strong employed by transnational companies, have enabled these large enterprises to regroup resources on a large scope and enhance their market competitiveness.
Meanwhile, many of them have quickened their entry into the Chinese market by establishing research and development centers in China and unfolding all-round competition on the Chinese market. Fierce market competition has made the enterprises realize the importance of technological innovation for subsistence and development. The effective ways and means they use in seeking technological innovation have formed a good atmosphere.
However, due to historical reasons, the distribution of China's sci-tech resources is extremely unreasonable. It is difficult to effectively transform precious technological resources into economic and competitive advantages since the main sci-tech resources are distributed in universities and research institutes, the orientation of scientific research is habitually directed toward pursuit of academic levels and the needs of industries and enterprises are neglected. In the face of a new round of re-organization of international industries, fierce international competition and the opportunities and challenges brought by China's projected entry into the WTO, major efforts must be made to settle the problem concerning the combination of science and technology with the economy and accelerate the establishment of a market-oriented technological innovation mechanism.
Technological innovation represents the whole process from the research and development of new technology to its first commercial application, in which science and technology change from the form of knowledge to the form of materials, from potential productivity to practical productivity. Therefore, technological innovation is the key to realizing the combination of science and technology with the economy. Technological innovation is different from technology invention. An inventor is not tantamount to an innovator. Only when invention is integrated with economic activities and economic benefits are brought about, can final innovation be achieved. The motivating force of technological innovation comes from the market, its success or failure has to be tested by the market. Technological innovation is, in essence, the combination of the technological opportunity and the market opportunity. Anyone who is able to accurately grasp this combination and successfully introduce it into the market will succeed in innovation.
Market is the starting-point and terminal of technological innovation. Setting up a market-oriented technological innovation mechanism requires that scientific research must
firstly be geared to the market. The market is objective existence and is undergoing constant development and change, only by making in-depth analysis and grasping the market, is it possible to enable scientific research to create market value and economic benefits. The important reason why it is difficult for the numerous scientific achievements each year to be effectively transformed into productivity is that many research results themselves lack a market basis and that prospect for the transformation is unavailable, resulting in the waste of large amounts of sci-tech resources. Intensifying awareness of the market and conducting market-oriented development and research are the primary prerequisite for technological innovation.
Secondly, giving prominence to the position of enterprise as the mainstay in technological innovations. Currently, the technological force and development capacity of enterprises are relatively weak. Universities and research institutes are still China's major technological force.. However, the objective law of technological innovation reveals that enterprises are the main body of technological innovation. The process of technological innovation draws in the common participation of various social segments, but the enterprise holds the leading position in the process. Many major technological innovations in the world are realized by enterprises.
Thirdly, forming a good operational mechanism for technological innovation. It is necessary to realize the innovation of concepts. Creative work should be carried out in accordance with the objective law of the market economy and technological innovation, so as to closely connect various links of market, research, products and sales and organize the work according to the methods of systematic project. Organizational system and structure favorable to independent innovation should be formed. System innovation is the foundation of technological innovation. Favorable system environment is the important guarantee for success in technological innovation. An investment mechanism should be established. In 1998, China's R£¦D investment only accounted for 0.69 percent of GDP, far behind the developed countries' 2-3 percent. Investment in technological development of large and medium enterprises only accounted for 1.27 percent of sales income, far lower than the level of 5-10 percent of developed countries. Managers of the enterprises should, proceeding from their long-term benefits, intensify the investment in technological innovation and expedite the development of leading products and core technology with independent intellectual property.
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