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Market to drive innovation

China Daily | Updated: 2015-03-30 07:40

The State Council, China's cabinet, has vowed to break the ideological and institutional barriers that obstruct system innovations and tap the potential of society, and called for the accelerated implementation of an innovation-driven development strategy.

Such a strategy is of vital and long-term practical significance for the country. Only through institutional reforms can the country break through the barriers put up by established institutions and eliminate the mechanisms that restrain innovation.

To expedite the implementation of its innovation-driven development strategy, the market must be given a decisive role in the distribution of resources and the government must refrain from using its invisible hand to intervene in market activities. The government should considerably reduce administrative interventions in market-based projects and technological innovations. Instead, it should focus more on establishing an innovation incentive mechanism and creating an environment for equitable and fair competition.

Market to drive innovation

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