Innovative development and innovation capacity-building in China

Chinese government has issued the “Outline of Medium and Long-term Plan for National Science and Technology Development” in January 2006 (The State Council, 2006), with an ambitious goal to become an innovative country by 2020. Meanwhile, the capacity building for innovation has become the core of national strategies, and results in a fundamental change in the national innovation strategy and related policies. However, what does the innovation-oriented country really means? How to describe national innovation capacity and national innovative development? In practice, there is no official or broadly accepted definition on the innovation-oriented country and the national innovative development so far. Therefore, it is necessary to clearly define the concepts such as innovative development and innovation capacity so as to set up indicator systems for monitoring the evolution of national innovative development and national innovation capacity-building in China, which will be very important to identify key issues that affect the implementing effectiveness of innovation policy so as to provide necessary support for innovation policy-making and its improvement. Meanwhile, it is also very important to measure the gap in innovation capacity and in innovative development between China and developed countries so as to adjust national innovation strategy and related policies. This presentation tries to define several concepts such as “innovation-driven country” and “the national innovation capacity” as well as “national innovative development”, to set up two indicator systems for national innovation capacity and national innovative country, and to develop an rational methodology for related measurement. The results of evaluation of national innovation capacity of 38 countries, including developed countries such as US, Japan, Germany and developing countries such as China and Indian show that China become faster country among the 38 countries, and ranks the 17 in 2005 in stead of the 28 in 2000. However, the expansion of innovation activity instead of growth of innovation efficiency and effectiveness is main contributor for the development of innovation capacity. Therefore, the results of evaluation of national innovative country of 34 countries, including developed countries such as US, Japan, Germany and developing countries such as China and Indian show that China become is one of faster countries among the 34 countries in terms of index of national innovative index, but still