On Operational Mechanism For Innovation Of Science & Technology

It's a great strategy to strengthen the innovative capabilities in science and technology and build a innovative country. In order to fulfill the task in the course of perfecting the system in the socialist market economy, a proper operational mechanism for innovation is needed and the relation between the market and the government should be dealt with, which includes the basic functions of the market mechanism to distributing resources in science & technology and the instructive role of the government's macro-economic control, and thus avoids "the Double Failures" from both the market and the government. Firstly, this dissertation analyzes the necessity to establish the operational mechanism for innovation in science and technology in theory. According to the theories regarding innovation in Marxism and Western Economics, all units such as enterprises, government, research institutes and unniversities play important roles resepectively, and among them enterprises take the subjective part. According to the theories concerning operational mechanism in Marxism and Western Economics, a scientific and complete operational mechanism should be set up for innovation and the relation between the market and the government should be considered so that each innovative unit can make its own profits and also keep with what the state aims at as a whole to strengthen the state's overall innovative capacities and encourage all the units to do so at the same time. Secondly, the dissertation analyzes the necessity for the establishment of the operational mechanism for innovation in science and technology in practice. The institutional changes in science and technology show that China's innovative operational mechanism has both dynamic and static characteristics, the dynamic side coming from the change with the transformation of different systems and the static side resulting from the inconsistency from both planned and market mechanisms. China's overall status in innovation shows that the present mechanism for innovation is not scientific and complete enough to effectively stimulate innovative actions. Thirdly, guided by Marxism and borrowed from Western Economics, the dessertation reconsiders China's innovation operational mechanism and elaborates it from four aspects including the enterprise mechanism, the government mechanism, the market mechanism and the social mechanism, which aims at dealing with the relation between the market and the government scientifically, overcoming both market failure and government failure, as well as strengthening the state's overall innovative capacities in both-macro-and-micro economy. Finally, this dissertation points out there's a long way to go when establishing the mechanism. What's urgent at the moment is to do well in the following aspects: 1) Establishing the enterprise's principal status; 2) Finding the government's position; 3) Playing the capital market's supportive role; and 4) Pushing enterprise-university-research insititute cooperation.