Guangming Daily:

General Secretary Xi Jinping stressed to let the R&D funds serve creative activities. How can research institutions and researchers be freed from cumbersome and unnecessary institutional constraints? What substantial and resolute efforts have been made in this regard? Can you brief us on the specific progress of reforming the science and technology management system? Thank you. 

Li Meng:

Thanks for your questions. These problems were reported frequently by researchers in the previous years, which are key tasks of the reform of the science and technology management system. Since the 18th CPC National Congress, General Secretary Xi Jinping has made the reform of the science and technology management system a priority of deepening overall reform from the very beginning, and assumed leadership, and made plans personally. Many major issues concerning reforming the science and technology management system have been proposed by the general secretary himself. 

The Central Commission for Comprehensively Deepening Reform has reviewed over 20 major reform initiatives regarding science and technology. By far, 143 tasks in the Implementation Plan for Deepening Reform of Science and Technology System have been completed, and an institutional and fundamental framework supporting comprehensive innovation has taken shape. Substantial progress has been made in reforms in key areas and links. Breakthroughs have been made in tackling key and difficult issues as well as bottlenecks that have long been unsolved. China has, for the first time, established the National Advisory Committee for Science and Technology and the National Science and Technology Ethics Committee. The national planning for the development of science and technology has been reconstructed, resolving the problem of allocating scientific and technological resources in a closed and fragmented way, thus making the governance mechanisms more adaptable for scientific and technological development. China has developed national laboratories and launched the restructuring of the system of key national laboratories. Institutions of higher learning and research institutes have been granted greater autonomy. The principal position of enterprises in innovation has been primarily established. Strategic science and technology capabilities have been further strengthened. All of these measures have contributed to creating a powerful synergy for promoting scientific and technological innovation.

Concerning your question on implementing General Secretary Xi Jinping's direction that let the R&D funds serve creative activities, a series of reforms have been carried out ever since, including adopting profit distribution policies oriented toward increasing the value of knowledge, building up the trust-based management system for science and technology programs and funding for scientific and technological research, establishing a quality, performance, contribution-oriented evaluation approach, providing stronger incentives for researchers. Systematic steps have been taken to reform mechanisms of program assessment, personnel assessment, and institution evaluation. Many localities and organizations have explored roadmaps for category-based assessment.  

Following the laws of scientific exploration and technological innovation, we have introduced an open competition mechanism to select the best candidates to lead key research projects, implemented the system of chief scientists assuming responsibility for research programs in frontier areas, and set up revolutionary technology projects so as to encourage scientists to make bold explorations. We have also set up young scientists programs in the National Key R&D Programs during the 14th Five-Year Plan period, enabling more young scientists to take the leading role in programs, which has won wide popularity. In addition, scientists have been granted greater power to make decisions on technology roadmaps and to dispose of the funding so as to, as you have mentioned, release science researchers from the burdensome and unnecessarily institutional fetters.

The difficulties in the application of scientific and technological achievements have long been reflected and have not been solved very well. In recent years, one of the major goals of reform of science and technology system is to accelerate the establishment of the system for the transfer and commercialization of advances in science and technology, building smooth paths among science and technology, industry, and finance. For that purpose, rewards have been increased by a considerable sum to science researchers for the transfer and commercialization of advances in science and technology. And the right to use, transfer, and profit from their scientific and technological advances has been fully delegated. Trials have also been carried out to give science researchers the ownership and long-term right to use their scientific and technological advances.

Preferential policies and institutional arrangements have been implemented to encourage innovation among enterprises. The additional tax deductions for R&D expenses increased from 50% in 2012 to 75% in 2018, and now cover 100% of small and medium sci-tech enterprises and manufacturing enterprises, demonstrating support for small and medium sci-tech enterprises. At present, over three-fourths of the total R&D investment in China comes from enterprises, and 79% of the National Key R&D Programs are initiated or participated by enterprises.

The market for trade in technology has been expanded. The level of activity of the market for trade in technology reflects that of the transfer and commercialization of advances in science and technology. Last year, the technology contract turnover reached 3.7 trillion yuan, well exceeding the total R&D investment in China in 2021 and 5.8 times the turnover in 2012, suggesting rapid growth.

In the capital market, the Science and Technology Innovation Board (or STAR Market) has been established, the Growth Enterprise Market (GEM) Board has been reformed, and the Beijing Stock Exchange has been set up. Channels for direct listing and financing for core technology enterprises have been opened up. Technology, industry, and finance are shaping each other and forming a virtuous circle. In the past, there was a disconnect between technology and the economy, but now, thanks to the involvement and increased role of financial and capital markets, a synergy is created between technology and economy.

In order to achieve high-level self-reliance in science and technology, China will eventually depend on high-level innovative talents. In the next step, we will follow the deployment of the CPC Central Committee, focus on implementing a three-year action plan for reforming the science and technology management system, and pay close attention to the implementation. We will also stimulate the innovation of talents and provide opportunities to more researchers with real talent and knowledge. Thank you.

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