National Outline for Medium and Long Term S&t development Planning (2006-2020)

Financial Policies Encouraging Innovation and Pioneering

Establish and perfect venture capital investment mechanism for innovation and pioneering activities, and prepare and formulate laws, regulations and policies to promote the healthy development of venture capital investment destined for pioneering activities. Advance the development of the second board stock exchange, and establish a multi-level capital market system that accelerates commercial applications of S&T achievements. Encourage qualified high-tech enterprises to be listed on the main and second board stock exchange while creating agreeable conditions for small and medium-sized high-tech enterprises to be listed abroad. Create more relaxed banking and foreign exchange policy environment for high-tech venture capital firms. Carry out experiment on circulating unlisted high-tech corporate real options at national high tech industrial parks and gradually establish a technology property rights trade market. Explore to establish a fund raising modality guided by state treasury appropriations, and mainstreamed by the investment from policy oriented banks and commercial banks, in an attempt to attract more capital into venture capital investment market. Establish a nationwide self-regulating organization for S&T venture capital investments while encouraging banking institutions to provide favorable loans to major national S&T industrialization projects, and S&T commercialization activities. Create intellectual property credit and other credit assurance systems, in order to encourage technology innovation at small and medium-sized enterprises, and create a healthy fund raising environment for them. Establish science and technology related financial cooperation platforms in diverse forms. Government shall encourage banking institutions and private capital become part of S&T development and to improve and strengthen their services for high-tech enterprises, especially for small and medium-sized S&T businesses. Encourage insurance companies to enhance products and service innovation so as provide an overall risk guarantee for S&T innovation activities.

6. 
   Accelerating the Industrialization of High Technologies and the Diffusion of Advanced Appropriate Technologies
   

High-tech industrialization shall be deemed as a priority in economic restructuring and changing economic growth modalities. Vigorously develop the high-tech industries that can lead to breakthroughs in driving economic growth.

Optimize the environment for high-tech industrialization. Efforts should be continued to strengthen the capacity building of high-tech industrialization bases, including national high-tech industrial parks, by formulating policies conducive not only to the development of national high-tech industrial parks but also to helping spur the development of adjacent areas. Establish information platforms for technology exchange and trade information, and provide policy support for technical development and associated service provided by S&T intermediary services, including university S&T parks, S&T business incubators, productivity promotion centers, and technology transfer centers.
Enhance the support for the diffusion of agricultural technology in order to establish new mechanisms for diffusing advanced appropriate technologies to rural areas. The dissemination of agricultural S&T achievements should be made an important factor for qualifying for an S&T award, while efforts will be made to create a qualification attestation system for agricultural technology diffusion personnel, and encouraging S&T personnel to be part of front line diffusion efforts in different forms. Establish special funds for agriculture S&T achievements related spin-off and diffusion, promoting the diffusion of advanced appropriate technologies in rural areas, and supporting technology innovation, invention and creation made by rural residents. The state shall provide a classified guidance and support for the diffusion of agricultural S&T findings, encouraging and supporting the development of diffusion organizations in different forms, and created diversified diffusion systems.
Support industrial sector-oriented applications of critical enabling technologies . Effective policies and measures will be worked out to support the development, diffusion, and application of pre-competitive industrial technologies, particularly the diffusion and application of key technologies in the fields of electronics and information, biology, information technology-based manufacturing, advanced materials, environmental protection, and energy efficiency. Promote the transformation and upgrading of traditional industries, and strengthen the capacity building of technology engineering platforms, industrialization demonstration bases, and intermediate pilot bases.

7. 
   Perfecting the Mechanism for Combining Defense and Civilian Sectors, and Making Defense Part of the Civilian Sector
   

Strengthen the overall planning and coordination in integrating the defense and civilian sectors. The S&T management system that separates the defense from the civilian must be reformed to allow for the creation of a new S&T management system embracing both the defense and civic sectors. Encourage defense-related research institutes to work on civilian research topics, while defense-related R&D activities be made open to civilian research institutes and industries. Expand the scope of defense procurement from civilian research institutes and industries. Reform the management system to ensure fair competition between non-defense and defense research institutes for defense-related research and production contracts while establishing public platforms for the integration of the defense and civilian sectors, and for dual-use applications.

Establish a new mechanism adapting to the characteristics of both defense and civic scientific research activities. Coordinate the deployment of basic research in defense and civilian sectors, and strengthen the integration of research and development efforts in both sectors. Establish an interactive mechanism between the defense and civic sectors, coordinating the development and production of defense and civilian products, and fostering an organic combination of S&T efforts in both sectors.

8. 
   Expanding International and Regional S&T Cooperation and Exchanges
   

The improvement of the nation’s indigenous innovative capability calls for taking full advantage of the merits derived from opening to the outside world, and a significantly higher level of international and regional S&T cooperation and exchanges in various forms.

Encouraging research institutes and universities to establish joint laboratories or R&D centers with overseas research institutes; support the implementation of international cooperation projects under bilateral or multilateral S&T cooperation frameworks; and establish a collaborating S&T mechanism between the mainland and Hong Kong, Macao and Taiwan, to strengthen communications and exchanges.
Support our country’s enterprises in their “going out” efforts. Expand the export of high technologies and products, encouraging and helping them to establish R&D centers or industrialization bases overseas.
Participate actively in large international scientific projects and international academic organizations. Supporting our scientists and research institutes to be part of or take the lead in large international and regional scientific projects. A training system should be established in order to increase the ability of our scientists to engage in international academic exchanges and to take up senior positions at major international academic organizations. Encourage multinational corporations to establish their R&D centers in our country while offering favorable conditions for making our country the physical location of international academic organizations or their regional offices.

9. 
   Improving Scientific and Cultural Literacy of the Entire Nation and Building a Social Environment Conducive to S&T innovation
   

Implement a nationwide scientific literacy action plan. Improve the scientific and cultural literacy of the entire nation with a view to advancing people’s overall development. Advocate scientific spirit, spread scientific thinking and practices, and diffuse scientific knowledge. Strengthen popular science activities in rural areas, gradually establishing a training system that helps raise farmers’ farming technologies and vocational skills. Organize systematic scientific exploration and experiencing activities in different forms both on and off campus. Strengthen innovation oriented education, and raising teenagers’ innovation awareness and capability. Strengthen science and technology related training for public servants at different levels.

Strengthen the national capacity building in the field of popular science by rationally distributing and building popular science facilities and improving the quality of existing popular science sites. Establish a system making research institutes and universities accessible to the public on a regular basis, while strengthening communications and exchanges with the public through the implementation of S&T programs and projects. In order to bring about a flourishing development in popular science writings and creating popular science brand names, encourage renowned scientists and other experts and scholars to become involved in popular science writings, developing major popular science topics, and fostering original popular science writings. Establish S&T communications as a major at universities, in order to strengthen basic theoretical studies concerning popular science and train popular science professionals.
Establish a sound operational mechanism for popular science activities. Strengthen concerted efforts of government agencies, private groups, and large enterprises, facilitating interaction and collaboration between the S&T and education communities and the mass media. Encourage the development of business oriented popular science activities by relaxing restrictions to allow private and overseas capital to access popular science activities and by formulating preferential policies for establishing diversified investment mechanisms. Advance the reform of public good popular science system in order to activate vitality, increase service conscientiousness, and enhance sustainable development capability.

6. 
   S&T Input and S&T Infrastructure Platforms
   

S&T input and basic facilities platforms constitute a material basis for S&T innovation, and an important prerequisite and a fundamental guarantee for sustainable S&T development. Today’s S&T input is literally an investment in the future national competitiveness. Since the adoption of reform and opening up policy, the nation has seen continued increases in S&T input. However, to meet the major demand in greater S&T development and in the full-fledged construction a well-to-do society, and compared with the developed and emerging industrialized nations, the nation’s total and intensity of S&T input remains insufficient, with irrational aspects in the investment structure, and a weak S&T infrastructure. Given the fact that both developed and emerging industrialized nations around the world have made the increase of S&T input a strategic measure to raise their national competitiveness, our country should respond to the trend and need for enhancing the nation’s indigenous innovation and core competitiveness by drastically increasing its input in S&T activities and strengthening the construction basic S&T facilities, so as to ensure the fulfillment of the missions defined in the Outline.

1. 
   Establishing a Diversified, Multi-channel S&T Input System
   

Taking full advantage of the guiding role played by the government in enhancing S&T input, efforts are to be made to enhance government capability in mobilizing nationwide S&T resources through diverse financial means such as direct appropriations and referential taxation breaks. State treasury appropriations will be mainly used to support public S&T activities that cannot be effectively covered by the current market system, including basic research, frontier technology development, public good research, and development of major key enabling technologies, in addition to its role in guiding industry and private sectors to enhance their S&T input. Government agencies at both central and local levels shall increase the proportion of S&T input in both annual budgeting and distribution of extra budgets, according to the PRC Law on S&T Progress, in an attempt to ensure an S&T expenditure growth noticeably higher than that of regular financial revenues, and in an effort to gradually raise the weight of state treasury S&T appropriations in GDP. Coordinate expenditure needs for implementing planned S&T activities in line with the national strength, to ensure the smooth implementation of major special projects. The central government will continue to increase its investment in the construction of major S&T infrastructure, with a weighted appropriation support for construction activities at both central and local levels. While increasing government appropriated S&T input, efforts should be made to strengthen the principal position of enterprises in S&T input. In a word, these concerted efforts of all sectors are expected to bring about an increased R&D expenditure year by year, which will reach 2% by 2010 and 2.5% or above by 2020 as a percentage of GDP.

2. 
   Readjusting and Optimizing Input Structures, and Raising the Cost-effectiveness of S&T Expenditures
   

Support will be strengthened for basic research, frontier technology development, public good research, S&T infrastructure, and popular science activities. Make appropriate funds available for regular expenditures needed by research institutes (bases), research projects, and S&T infrastructure construction. Steadily enhancing the investment in basic research and public good oriented research institutes, making popular science expenditures part of the financial budgeting at an equivalent level, and gradually raising the input in popular science activities. Establish and perfect an S&T expenditure management system, in line with the rules of scientific research and characteristics of S&T activities. Regulate the use of S&T appropriations in accordance with relevant state regulations on budgeting, and improve the safety and effectiveness of appropriations. Increase the openness, transparency, and fairness of national S&T program management, gradually establishing an S&T expenditure assessment system, and corresponding evaluation and supervision mechanism.

3. 
   Strengthening the Construction of S&T Infrastructure Platforms
   

S&T infrastructures platforms are an enabling system consisting of research and experiment bases, large scientific facilities, instrumentation, and equipment, scientific data and information, and natural S&T resources, supported by information and network technologies and shared by the public in their innovation activities. The construction of S&T infrastructure platforms will focus on the following:

National research and experiment bases. Establish, in line with the nation’s major strategic needs, a number of national laboratories and scientific research and experiment bases, featuring a strong interdisciplinary research team and advanced level, in emerging fields or in the fields where China has a specialty or strength. Strengthen the capacity building of national key labs, and consistently raise its operation and management capability. Establish a national network for field scientific observation and research activities.
Large scientific projects and facilities. Pay more attention to the role played by scientific instruments and equipment in scientific research, and strengthen the proprietary research and development of scientific instruments and equipment and associated test techniques. Establish a number of large scientific projects and infrastructures, including high performance computers, large aerodynamic research and experiment, and scientific experiments under extreme conditions. Advance sharing and construction of large scientific instruments, equipment , and facilities, gradually forming up a nationwide sharing network.
Scientific data and information platforms. Establish digital platforms ridden with S&T conditions and resources related information, by taking full advantage of modern information technology and means, facilitating sharing of scientific data and literatures, building an online scientific research environment, providing relevant services to the whole society, and promoting the reform of means and approaches used in scientific research.
Natural S&T resources service platforms. Establish a complete conservation system for plant and animal germplasm, microbes and bacteria species resources, and human genetic resources, and create a protection and utilization system for natural S&T resources, including experimental materials, specimens, and mineral fossils.
National technical system for standards, metrology, and test. Develop and formulate high accuracy and high-stability metrological bench standards and standard specimen system. Establish technology standards for major fields, and improve test lab systems, attestation and certification systems, and associated technical measures for technology trade.

4. 
   Establishing a Mechanism for Sharing S&T infrastructure Platforms
   

The establishment of an effective sharing system and mechanism constitute a key link and prerequisite for the development of S&T infrastructure platforms. Under the principle of “consolidating, sharing, perfecting, and upgrading”, and taking into account successful foreign experience, formulate standards and regulations involving different S&T resources, and establish a policy and law system promoting S&T resources sharing. Encourag flexible sharing modalities in line with different S&T resources and conditions, and break up the existing divided, closed, and redundant pattern.

6. 
   Talented Workforce Buildup
   

S&T innovation is rooted in S&T personnel. Human resource has become a most important strategic resource. It is important to advocate the strategy of national capacity building with talented people, strengthening the capacity building of S&T personnel, and providing human resource support for the implementation of the Outline.

1. 
   Accelerating the Nurturing of a Contingent of world caliber experts
   

Reinforce the nurturing of disciplinary leaders and advancing the buildup of innovative teams, through major scientific research and construction projects, at major disciplines and research bases, and through international academic exchanges and cooperation projects. Pay close attention to discovering and nurturing strategic scientists and S&T management personnel. Formulate special policies to attract high caliber experts in the core areas. Further break up the old practice that ranks a person according to seniority, overcoming the desire for quick results. Lose no time in nurturing young and middle-aged high caliber experts. Improve and perfect a range of high caliber personnel systems, including the job title system, academician system, special government allowance system, and postdoctoral system. Establish a high caliber expert screening system, in an effort to let more talented people come out.

2. 
   Bring into Full Play the Important Role of Education in Cultivating Innovative Talents
   

Strengthen the organic combination of S&T innovation and personnel nurturing, encouraging research institutes to nurture research oriented personnel, in collaboration with universities. Encourage undergraduates to take part in research activities, in order to cultivate their exploration enthusiasm and scientific spirit in innovation activities. Universities shall make a rational distribution of interdisciplines and emerging disciplines, and restructure subject composition accordingly, in line with the nation’s S&T development strategies and market demand for innovation personnel. Strengthen vocational education, continuing education and training, and paying more attention to the training of technicians for diverse technical applications, in response to the needs of the economic and social development. Deepen the reform of the curriculum design of primary and middle schools, promoting quality-centered education, and raising studnets’ scientific and cultural literacy.

3. 
   Supporting Enterprises’ Efforts in Nurturing and Attracting S&T Talents
   

The state encourages enterprises to recruit and nurture high caliber S&T personnel, with corresponding policy support. Encourage and guide S&T personnel at research institutes and universities to work on innovation or create their own S&T businesses. S&T personnel at research institutes and universities are allowed to take extra jobs for technology development at enterprises. Encourage university graduates to work for firms. Encourage enterprises to nurture technology talents, in collaboration with universities and research institutes. High caliber engineering talents can be nurtured through multiple channels and diverse modalities. State-owned high-tech businesses are allowed to introduce a range of incentive policies, including real options in honor of high caliber technicians and management personnel. Explore ways to establish a distribution system made up of diverse elements, including knowledge, technology, and management. Support industry to attract and recruit foreign scientists and engineers.

4. 
   Intensifying Efforts in Attracting High Caliber Talents From Overseas
   

Formulate and implement programs to attract returned service of high caliber overseas Chinese students, with priorities on attracting high caliber personnel and expertise in shortage. Establish talents attracting centers tailored to the characteristics of overseas Chinese students, through diverse approaches. Enhance the financing of the return of high caliber personnel. Strengthen the construction of pioneering centers for overseas Chinese students. Perfect the policies and measures in favor of returned service of overseas Chinese students. Create more open recruitment opportunities for high caliber innovation talents. Gradually open up the recruitment of senior post vacancy before overseas candidates, including lab directors, academic leaders of major research institutes. Adopt attractive policies and measures to attract high caliber overseas S&T personnel or teams to work in China.

5. 
   Creating a Culture Environment Conducive to the Nurturing of Innovative Talents
   

Advocate the patriotism featuring hardworking and dedication, and a teamwork spirit of pragmatism, innovation, collaboration and indifference to fame and wealth. Encourage rational skepticism and criticism, respecting individuality, tolerating failures, encouraging academic freedom and democracy, supporting exploration and standing out among peers, and respecting new theories and concepts. Stimulate innovative thinking, activate academic atmosphere, and strive to create a tolerant, harmonious, healthy, and upbeat innovation culture. Strengthen the ethics building in research activities while curbing flippancy and unethical practices in scientific research activities.

The implementation of the outline of the National medium and long term S&T development plan calls for a strengthened leadership and coordination as it has a broad coverage, long time span, and demanding requirements. Effective measures shall be adopted to ensure the implementation of the missions defined in the Outline. 1) Strengthening the interface between the Outline and the national economic and social development plan for the 11th five-year period. The Outline shall be implemented, according to the priority list, abreast with the implementation of the national economic and social development plan for the 11th five-year period, in an attempt to increase the feasible implementation of the Outline. The implementation will cover a sequence of efforts, including priority topics, major special projects, cutting-edge technology, basic research, construction of infrastructure platform, and S&T system reform, from which priorities will be selected to start immediately, or to be dealt with within the 11th five-year period. Working out matching arrangements and deployment in the national economic and social development plan for the 11th five-year period. 2) Formulating practical and feasible supporting policies. Development objectives, major missions, and policies and measures defined in the Outline are direction pointing and guiding in nature, and need practical and feasible supporting policies to go along with. These policies will cover: supporting industry to be the mainstream of technology innovation, promoting digestion, absorption, and re-innovation of imported technologies, government procurement tilting to proprietary innovations, increasing S&T input, S&T fund efficiency, deepening the reform of S&T system, establishment of national innovation system, accelerating high tech industrialization, capacity building for S&T personnel, and promoting the combination of defense and civic sectors and making defense part of the civic applications. The above-mentioned policies shall be prepared and enacted in such a manner that authorities concerned will take a lead, with the participation of involving government agencies. The policies shall be prepared based on a thorough survey and investigation, in an attempt to make them closely associated and coordinated with other policies concerning industry, banking, finance, taxation, and economy. The policies shall be made and implemented in a prompt manner. 3) Establishing a dynamic readjustment mechanism for implementing the Outline. It is important to establish a dynamic readjustment mechanism for implementing the Outline, based on economic and social analysis, technology prediction, and regular evaluation, in an attempt to keep abreast with the fast S&T development in the world, and changes brought up by the domestic economic and social development. It is also meaningful to make a timely and necessary readjustment of the development objectives and major missions defined in the Outline, in line with new trends and breakthroughs of S&T development both at home and abroad, and with the new demands rising from China’s economic and social development. Some of the missions will possibly be strengthened and enhanced, while some others readjusted. 4) Strengthening the organizing and supervision of the implementation. It is necessary to take full advantage of the initiatives of localities, government agencies, and private groups to organize the implementation, under a unified leadership of the Central Committee of the Chinese Communist Party and the State Council. Government agencies, in particular, national authorities in charge of S&T management, development and reform, and finance, shall live up to their respective responsibility through a close coordination, and strengthen concrete guidance. Provinces, municipalities, and autonomous regions shall implement the Outline in line with local development status.
The implementation of the Outline is associated with the full-fledged construction of a well-to-do society, the success of socialist modernization drive, and the great renaissance of the Chinese nation. Under the leadership of the Party Central Committee headed by Secretary General Hu Jingtao, and with the guidance of Deng Xiaoping Theory and the important doctrine of “Three Representations”, the nation will go all out to materialize the grand blueprint of science and technology development, and build an innovation-oriented nation with steadfast confidence and determination.