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Sci-tech Innovation Central to SOE Reform
Scientific and technological innovation should propel the reform of State-owned enterprises (SOEs), said a recent article in China Economic Times.
Although China has adopted a strategy of revitalizing the economy through science and technology, the situation is still far from satisfactory.
Firstly, the number of technical staff in Chinese enterprises is insufficient. It only accounts for 4 per cent of the total number of employees.
According to a report issued by a Swiss research centre, China's competitiveness in science and technology fields was ranked 25th out of 46 countries and regions in 1999.
Secondly, financial input in technological innovation is not enough.
China's scientific sector has not yet cast off the shackles of the planned economy. Personnel and capital are arranged by the government rather than by market mechanisms. Many research results are left in laboratories instead of being applied, the paper points out.
Scientific research institutions have little connection with business. Most of businesses concentrate on expansion and just let scientific innovation fall by the wayside.
The government, rather than businesses, the biggest beneficiaries of advances in science, is the major source of investment. Statistics indicate that Chinese scientists and researchers churn out about 30,000 research results every year, but only 20 per cent of these results are made use of.
To reverse the situation, the State should make more efforts to reshape the scientific sector and foster a sound environment for the development of science and technology, the paper suggests.
Over the past few years, China has drawn up a series of preferential tax, finance, investment and technology policies, and scientific awards. These are expected to help propel technological innovation and translate new findings into practical use.
More importantly, China should establish State-level technological innovation systems in order to reinforce its role in macro-control and commercialize more research results.
To ease cash shortages in most research centres, the State should tap more financial channels, urged the article.
A venture capital investment mechanism for high-tech enterprises needs to be set up.
Pushing forward scientific and technological progress requires a sound mechanism integrating research, technological development, manufacturing, investment and government support.
To improve scientific ethics, respecting and protecting intellectual property rights is also important, concluded the paper.
Source: chinadaily.com.cn
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