Laws of the People's Republic of China

    Our country is going to enter the critical period in implementing her third step strategy for modernization. In the twenty-first century, developing China to be a more prosperous and strong socialist modern country is the grand historical task of the entire Party and the people of all nationalities across China. In the contemporary world, science and technology develop and change quickly, and the unprecedented development of high and new technology and its industrialization represented by information technology and biological technology is deeply influencing the political, economic, military, cultural and other sections of the nations around the world. During the increased competition in integrated viability of the State mainly consisting of economic power, military power and the solidarity of its people among countries, whether a country can hold a place in the area of high and new technology and its industries has become the focus of such competition, and has become the essence of how to safeguard national sovereignty and the security of economy. We are confronted with stern challenges together with uncommon opportunities. Since the foundation of New China 50 years ago and especially since the reform and opening up, our country has achieved world-known substantial development in science and technology. Apparent progress has seen the reform to the science and technology system, and the broad masses of scientists and technologists have made significant contributions to the socialist modernization drive. However, the problem that science and technology are loose away with the economy hasn't been resolved at the root. The weak ability to transform science and technology into real productivity and the lower level of industrialization of high and new technology remain the impediments to our economic development. We must, according to the requirements of the Fifteenth National Congress of our Party, that is, "to estimate fully the substantial effect that the develo
pment of science and technology in the future, especially the high and new technologies, has on the integrated viability of a country, social and economic structure and the people's life, and to place the acceleration of scientific and technological advancements as the key to economic and social development", and, by furthering the reform, form a system and mechanism conductive to the realization of scientific and technological achievements from the root, strengthen technical innovation, develop high technology and realize industrialization. These not only are urgently required by the resolution of deep problems confronting our economic development, the further improvement of overall quality of our national economy and integrated viability and the realization of leap development, but also are strategic decisions to face the international competition and guarantee the success of the Chinese nation in the new century.

    I. Strengthening technical innovation, developing high technologies, realizing industrialization and promoting leap development of social productivity.

    1. Innovation is the soul of a nation's advancement, and is the unexhausted power of a county's prosperity and wealth. The core of strengthening technical innovation, developing high technologies and realizing industrialization lies in the complete fulfillment of respected Deng Xiaoping's key ideas regarding "science and technology being the first productivity", "a breakthrough in high technology areas bringing about the development of a group of industries", "developing high technologies and realizing industrialization" and etc., that is, in aspects of systems, mechanisms, policies and etc., promoting the close combination of science and technology and economy, transforming our scientific and technological power into real first productivity, and helping our integrated viability meet the international advanced level.

    Technical innovation means that an enterprise, applying innovative knowledge and new techniques and processes and adopting a new mode of production and pattern of business management, improves product quality, develops and produces new products, provides new services, occupies market and realizes market value. Enterprises are the subject of technical innovation. Technical innovation is the important prerequisite for developing high technologies and realizing industrialization.

    To develop high technologies and realize industrialization, that is, commercialize and industrialize high and new technology achievements, we shall start with the restructuring, activate existing scientific and technological resources, strengthen the research and development adapted to the market, popularize strongly and apply high and new technology and applicable technology, and enable scientific and technological achievements to be transformed speedily and effectively into market-competitive commodity; rebuild traditional industries, develop existing high and new technology industries, and form a number of new industries driven by technical innovation and breakthroughs.

    While promoting technical innovation and the commercialization and industrialization of high and new technology achievements, we shall regard market demand, social demand and national security demand as the basic start point of research and development, reinforce the status of enterprises as the subject of technical innovation, utilize fully the basic function of the market mechanism in allocating scientific and technological resources and directing scientific and technological activities, and encourage most scientific and technological forces into the market to accomplish innovation and business; driven by the reform, further the component reforms in the economic system, scientific and technological system and educational system, speed the construction of the State innovation system, and provide a regime as an effective safeguard for the commercialization and industrialization of high and new technology achievements.

    To strengthen technical innovation, develop high technologies, and realize industrialization, we must widen our opening up to the outside world, conduct comprehensive international cooperation and exchange, and develop ourselves in competition. We must combine research and development on our own with introduction and absorption of foreign advanced technologies, prevent low-level repetitions, pay attention to technical integration, promote interdisciplinary intersection, fusion and penetration, solve key problems jointly, accomplish technical leaps at a higher level, and shape more independent intellectual property; must insist on combination of short term and long term targets, and emphasize basic research, strategic high technology research and major scientific research in social benefits. For significant innovative breakthroughs, we must start with basic research, form continuously new ideas, new theories and new processes, provide sources for applied research and technological development, and enhance the capacity of continuous innovation.

    2. We shall strengthen macro direction in the aspects and stresses of technical innovation and the commercialization and industrialization of high and new technology achievements. On the basis of fully utilizing the market mechanism, we shall correctly realize the macro control function of the government, make overall planning, highlight the stresses, and, in such technological and industrial areas with advantages in our country, high-degree industry connection, good market prospects, and conductive to resolving the key, hot or difficult problems in national economy, select optimally a number of major projects, concentrate powers, crack key problems jointly, and make breakthroughs.

    We shall strengthen innovation, popularization and application of key technologies in agricultural and rural economic development. We shall emphasize the combination of information technology, biological technology, science and technology and traditional agricultural technologies, research and develop a number of key technologies, concentrate powers and achieve new breakthroughs as soon as possible especially in two major areas such as fine breed cultivation and water-saving agriculture to provide science and technology as a strong and powerful buttress for our agricultural modernization. We shall highlight independent innovation in high and new technology industry area, and foster a new growth point of economy. In electronic information area, especially in integrated circuit design and manufacture, network and communications, computer and software, digital electronic product and etc., and in high and new technology industry areas with a certain base such as biological technology and new medicines, new materials, new energies, aviation and space, and ocean, we shall strengthen technical innovation, and form a number of high and new technology enterprises with independent intellectual property and competitive advantages.

    We shall accelerate technological updating of our traditional industries. We shall stress the graft of traditional industries and technologies such as electronic information, develop vigorously competitive new products conductive to expanding domestic and international markets, improve the quality level of products and technical added value, develop and apply advanced manufacturing technology, process and equipment, and maximally improve the level of domestically made technical equipment.

    We shall increase the knowledge content in the services industry. We shall promote strongly electronic commerce, remote education and other emerging services industry, accelerate the application and popularization of high and new technologies in finance, consulting, trade, culture and other service areas, and fortify the competitiveness of the services industry.

    We shall strengthen technical innovation in areas of environmental protection and integrated development and use of resources. We shall develop strongly environmental protection technology and its industries, accelerate the development of technologies relating to clean energy and clean production and their industries, reinforce the development, popularization and application of technologies relating to disaster monitoring, forecast and prevention and treatment, and realize the strategy of sustainable development through scientific and technological advancement.

    Technologies used both for civil and military purposes shall be developed vigorously. We shall accelerate the transfer of military technology to civil areas and the development of its related industries, emphasize the important function of high and new technology in building our army through science and technology, and provide high technology support for our national security by cooperation of the army and civilians.

    II. Furthering the restructuring and promoting technical innovation and the commercialization and industrialization of high and new technology achievements

    3. We shall impel enterprises to be the subject of technical innovation, and enhance the capacity of enterprises for technical innovation in every aspect. State-owned enterprises shall regard the establishment and completion of technical innovation mechanisms as an important component of the establishment of the modern enterprise system, regard the improvement of technical innovation capacity and business management level as key measures to step out of difficult condition and toward development and prosperity, and thus make the enterprises the true subject of technical innovation. The existence and development of an enterprise must be directed by the market, and we shall strengthen research and development of technologies and the transformation and application of scientific and technological achievements, and switch actually to the reliance on technical advancement and industry updating to improve economic benefits.

    Large- and medium-scale enterprises shall establish and complete their enterprise technical centers, and accelerate the formation of effective operation mechanisms favoring technical innovation and the prompt transformation of technological achievements. We shall strengthen post technical training, improve completely the quality of laborers, and encourage employees to conduct technical invention and technical renovation in all aspects. They shall actively create conditions to attract in various manners more superior scientists and technologists into their enterprises, and exploit adequately their potential in technical development. They shall develop continuously new products, new technologies and new processes toward market demand, and organize scientifically the production, sales and services adopting advanced business management methods and mode of organization. Joint cooperation between enterprises and higher educational institutions or scientific research institutes shall be strengthened. Bilateral or multilateral technical cooperation mechanisms shall be established in accordance with principles of mutual complementing in advantages and benefit sharing, and the exchanges of scientists and technologists in different units shall be strengthened by means of mutual participation and mutual training. A certain proportion of research and development funds in enterprises shall be applied to the cooperation among production, study and research. They shall reinforce the effective connection between importation and digestion and absorption of technologies, and enhance capacities in technical fitness and independent development.

    We shall impel enterprises to increase actively scientific and technological input. The annual funds for research and development in high and new technology enterprises shall be no less than 5% of the annual sales revenue. The State supports and encourages large-scale enterprise groups to allocate a certain amount of funds for intensive use in the research and development and industrialization input of significant scientific and technological problems that are common, critical and the frontiers.

    Technical reformation of enterprises shall be directed by the market. They shall take note of utilization of existing bases and potentials, and emphasize the combination with development of high and new technology industry. The starting point of technical reformation shall be high, and the phenomenon of being left behind while reforming shall be avoided. Each year, the State shall support selectively a number of technical reformation projects in State-owned large- or medium-scale enterprises that are of strategic importance to national economy and own markets and are going well, and interest discount shall be granted to the projects that have been scientifically demonstrated and approved.

    Township enterprises shall also endeavor to improve technical innovation capacity, and stride further in developing and applying advanced technologies and enhancing business management.

    4. We shall push the transformation of applied scientific research institutes and design units into enterprise system, and promote vigorously the development of scientific and technological enterprises. We shall further deepen the reform of scientific and technological system, and optimize completely the distribution of scientific and technological power and the allocation of scientific and technological resources. In principle, the applied scientific research institutes and design units shall be transformed into scientific and technological enterprises, be transformed into enterprises in part or completely, or be transformed into service intermediaries. The government shall, by means of inviting bids for scientific and technological projects, continue to support the technical research activities that are common, critical and the frontiers conducted by these scientific and technological enterprises. Classified reform shall be applied to existing scientific research institutes for social benefits: for scientific research institutes with marketing ability, they shall be transformed into scientific and technological enterprises, be transformed into enterprises in part or completely, or be transformed into service intermediaries of an enterprise nature; for scientific research institutes providing public services for the society and without corresponding economic compensations, they shall be operated and managed pursuant to non-profit organization mechanisms based on structure adjustment and employee divergence, and the government shall provide funds for the scientific research projects and base construction by supporting policies and competitive selection. The scientific research institutes subordinate to the departments of the State Council (including scientific research institutes transformed into enterprises) shall generally be managed according to the principle of localization, except a few managed by the Center Government.

    The 10 scientific research institutes subordinate to State bureaus administered by the State Economic and Trade Commission have been transformed into enterprises, which provides beneficial experiences for overall advancement of the restructuring of scientific research institutes. After the transformation of scientific research institutes into enterprises, they shall establish a modern enterprise system, utilize fully their advantages in research and development directed to the market as well as technical innovation, form as soon as possible a number of international competitive high technology enterprises or enterprise groups with independent intellectual property, and develop to be an energetic new economic growth point.

    5. We shall strengthen the construction of State high and new technology industry development zones, and form high and new technology industrialization bases. Constructing high and new technology industry development zones is the important achievement of reforms in our economic and scientific and technological systems, and is an effective vehicle conforming to our national condition to develop high and new technology industry. At the present stage, we shall further strengthen the momentum of the coordinated reforms for State high and new technology industry development zones, enhance their functions to provide services for various enterprises transforming high and new technology achievements, build a sound environment attracting and fusing superior scientists and technologists and business managers to make innovation and business, and make them the important bases of technical innovation, industrialization of scientific and technological achievements and export of high and new technology products, discharging radiation and driving functions in regional economic development.

    We shall strengthen supervision and evaluation of State high and new technology industry development zones and high and new technology enterprises. A few development zones or enterprises losing qualifications and with poor management and few effect in developing high and new technology industry shall be cancelled their qualifications as State high and new technology industry development zones or high and new technology enterprises after evaluation and determination.

    Higher educational institutions shall fully utilize their own advantages in human resources, technologies and information, encourage their teachers and scientific research staff to enter high and new technology industry development zones engaging in the commercialization and industrialization of scientific and technological achievements. We shall support the development of scientific and technological zones in higher educational institutions, cultivate a number of knowledge and intelligence intensive high and new technology enterprises and enterprise groups with advantages in market competition, and thus further fasten the combination of production, study and research.

    The State shall apply supporting policies to a few State high and new technology industry development zones selected for their basis, conditions and advantages, and encourage bold exploitation, first establishment of new investment and financing mechanisms and incentive mechanisms and the prompt formation of internationally influencing high and new technology industrialization bases, providing beneficial experiences for the national construction of high and new technology industry development zones and the development of high and new technology industry.

    6. Development of various forms of private scientific and technological enterprises is encouraged. Private scientific and technological enterprises are a new power to develop our high and new technology industry, and are playing a more and more important role in our economic and scientific and technological development. The State technical innovation fund for medium- and small-scale scientific and technological enterprises shall give support to private scientific and technological enterprises. We shall, in the management system, ensure that private scientific and technological enterprises are able to participate equally in the bids for governmental scientific and technological programs or projects.

    The financial departments at all levels shall assist and support private scientific and technological enterprises in solving problems as to unclear titles. Disputes over titles between private scientific and technological enterprises and State-owned enterprises or institutions for historical reason shall be solved properly in accordance with the principles of protecting State-owned assets and rights and interests thereof, favoring encouragement of achievement transformation and supporting scientists and technologists in making business. In aspects of decision-making, management, distribution and etc. in an enterprise, individual lawful rights and interests shall be fully protected. We shall permit private scientific and technological enterprises to adopt a stock option plan and other means to mobilize the enthusiasm of talented scientists and technologists or talented business managers with power in innovation.

    State-owned scientific research institutes, upon approval by relevant departments, may be restructured to share or share cooperation enterprises.

    7. We shall develop strongly service intermediaries for science and technology. Service intermediaries for science and technology belong to non-governmental organizations, and are an indispensable service link between science and technology and their application, and between production and consumption. The State encourages certain scientific research institutes with similar nature to be transformed into enterprise service intermediaries for science and technology, and encourages scientists and technologists to establish such intermediaries. We shall formulate and complete laws and regulations regarding service intermediaries for science and technology as soon as possible, regulating their industrial conduct to strengthen management. We shall direct the various service intermediaries for technical innovation, intermediaries for technical evaluation, intermediaries for technical brokerage and other intermediaries to provide good services for accelerating transfer of scientific and technological achievements, and develop actively information consulting service providers to provide enterprises, especially the comprehensive medium and small ones, with services in business management, technology, marketing, information, human resources, accounting, finance, law and other areas. The intermediaries mainly engaged in providing public services for the society may be operated and managed as non-profit organizations after verification.

    We shall further cultivate and complete the technological market. The construction of infrastructure such as key technical supply and demand databases and scientific and technological information networks shall be strengthened. All regions shall, according to the characteristics of resources and industries, complete regional intermediary systems, realize gradually the organizational network, socialization in functions and industrialization of intermediary services, and form a national and even international electronic network commercial trading market.

    We shall, through reform, complete the agricultural scientific and technological popularization service system, and establish an agricultural scientific and technological popularization service network closely linked by scientific research institutes in agriculture, higher educational institutions, various technical service providers and enterprises involving agriculture. Scientific research institutes in agriculture shall be oriented to agricultural production, and the scientific research achievements in agriculture shall be transformed into productivity promptly. The State vests an independent sales right as to seeds and other products researched and developed in scientific research institutes in agriculture, and encourages them to perform various forms of cooperation or consolidation with all kinds of enterprises in agricultural businesses. The existing popularization service providers of agricultural technologies in counties (cities) and villages (towns) shall further change their modes of service, and improve continuously their functions and levels of service. We shall break the administrative land boundaries, develop actively a new type of popularization mode of agricultural technologies closed linked by leading enterprises, intermediaries and farmers, improve the operating level of agricultural industrialization, and direct the comprehensive farmers to adjust structures promptly and organize production according to market demand.

    III. Adopting effective measures to build a policy environment favoring technical innovation and developing high technology and realizing industrialization

    8. Implementing supporting policy in finance and taxation. The financial departments at all levels shall increase their scientific and technological input. The mode of input by the financial departments to science and technology shall change from general support to scientific research institutes and scientists and technologists to selective support mainly to projects; the State scientific research programs adopt a task system, and bidding and intermediary evaluation systems for projects shall be greatly executed; the technical innovation fund for medium and small-scale scientific and technological enterprises shall be established to provide capital support for the transformation activities of high and new technology achievements. Supporting policy in finance and taxation shall be applied to high and new technology products. By enforcing governmental procurement policy, budgetary control, bidding and other manners, we shall direct and encourage government departments, enterprises and institutions to purchase selectively domestic high and new technologies and equipment and products thereof. The research and development funds contributed to scientific research institutes and higher educational institutions by social forces may be deducted by the State from the revenue taxable according to a certain proportion.

    Revenues from technological transfer and technological development as well as technical consulting and technical service in connection therewith shall be exempted from business tax. For enterprises developing and manufacturing software products, the value-added tax on their software products may be levied by a rate of 6%; supporting policy for software sales enterprises shall be formulated, and the expenditures in wages of software developing and manufacturing enterprises may be deducted according to the actual occurring amount before enterprise income tax is paid. For export of high and new technology products, zero value-added tax rate policy shall be enforced. For import of advanced technology and equipment not domestically available, supporting policy in taxation shall be enforced.

    We shall permit and encourage technology, management and other production elements to participate in benefits distribution. Experiments in partial high and new technology enterprises shall be made to reward meritorious employees, especially scientists and technologists and business management personnel, by sharing stocks out of a certain proportion of the increment of State-owned net assets in recent years.

    9. Implementing supporting policy in banking. The financial institutions shall fully realize the support function of credit loan, and improve their credit loan services for scientific and technological enterprises by actively developing various effective instruments. They shall, according to the different characteristics of enterprises, establish corresponding rules on authorization and loan facility, complete capital management rules, increase the categories of credit loan, develop security manners, and expand scientific and technological credit input. The rules on security for granting loans to medium- and small-scale scientific and technological enterprises shall be researched, proposed and settled as soon as possible. For qualified scientific and technological projects with lawful security, scientific and technological loans and technical reformation loans shall be granted in priority; for high and new technology achievement transformation projects and technical reformation projects with good market prospects, high content of technology and good economic results and able to replace imports, the supporting momentum shall be reinforced. The State shall provide corresponding discount interest support for these projects. The State shall support the export of high and new technology products in credit loan and discount interest.

    We shall cultivate a capital market favoring the development of high and new technology industry, establish gradually the risk investment mechanism, develop risk investment companies and risk investment funds, establish a withdrawal mechanism of risk investment, and increase the momentum of supporting the growing high and new technology enterprises. We shall introduce and train talented risk investment managers, and accelerate the making of relevant policies and regulations to regulate the market conduct of risk investment. We shall first support able high and new technology enterprises in entering domestic and international capital markets. When appropriate, on the basis of satisfactory preparation, we shall specially create high and new technology enterprises blocks on the existing Shanghai and Shenzhen stock exchanges.

    10. Completing the management system of scientists and technologists and encouraging the transformation of scientific and technological achievements. After scientific research institutes are transformed to enterprises, the enterprise labor and employment system and wages distribution system shall be executed. The scientific research institutes continuously funded by the State shall execute a multi-employment system dominated by full appointment system. We shall reform the current position and title system, and enforce the post appointment system. The competent government departments for personnel administration shall not perform quota control over the internal position structural proportion of scientific research institutes, and scientific research institutes may independently, according to their own need, set professional and technical posts and position grades, and determine post responsibilities and employment terms. The position and corresponding treatment got by scientists and technologists through competition shall apply only during the employment period. Scientific research institutes shall enforce a remuneration distribution system according to posts, tasks and results, and determine its internal distribution independently.

    Scientific research institutes and higher educational institutions shall attach great importance to the training and use of leaders in technical innovation. They shall advocate strongly patriotism, collectivism, factualism, innovation spirit, up-striving and selflessness spirit among scientists and technologists. They shall train a number of talented technical and business management staff adaptable to market competition, good at business management and nerved to make innovations, endeavor to create a better environment and conditions for their growth, make good use of them, make talented persons, especially the young people, show their ability and walk up to key posts as soon as possible.

    We shall take further pressing measures to attract superior oversee specialists by various means. Except realizing existing preferential policies, we shall give them convenience in residency, housing, children' schooling and other aspects. All relevant departments shall make things easy for entry and exit by the Chinese or foreign staff engaging in international cooperation and exchange of high and new technology.

    Enterprises, scientific research institutes or higher educational institutions shall draw a certain proportion from the profits earned by the transformation of scientific and technological achievements on the job to reward the staff accomplishing the projects or making contributions to the industrialization.

    11. Special policy support shall be given to the scientific research institutes being transformed to enterprises. For scientific research institutes subsequently transformed to enterprises, the State shall continue enforcing the supporting policies enjoyed by the 10 scientific research institutes subordinate to State bureaus administered by the State Economic and Trade Commission in transformation. Scientific research institutes may, in transformation, at their discretion, choose specific manners for being transformed to enterprises or entering enterprises. In transformation, their total assets (including land use rights) shall be transformed into enterprise assets, and the balance of total assets less liabilities shall be transformed into State-owned capital or equities; the usual undertaking fees appropriated previously shall be mainly used for supporting the retired before transformation. Scientific research institutes transformed into enterprises may use their original names as the enterprise names; those incorporated into enterprises may continue technical development and other business operations in their original names.

    In transformation of scientific research institutes, an old-age insurance system for enterprises' employees shall apply to employees currently working in enterprises, which shall be included in the local old-age security system; individual account for basic old-age insurance shall be opened, and the unit and employees shall begin to pay premiums of old-age insurance in proportion after transformation, those before transformation being deemed having been paid. If the old-age insurance money received after retirement at legal age by the employees that are currently working and were employed before transformation is lower than the standard of the previous undertaking unit, the unit may provide subsidy pursuant to the standard of the previous undertaking unit.

    12. Accurately evaluating scientific and technological achievements and giving science and technology rewards. The State shall apply corresponding evaluation standards and methods according to the different characteristics of various scientific and technological activities, streamline the number of awards, and increase the momentum of rewarding. Of the State science and technology awards, the evaluation standard for the natural science award shall be in consistence with international standards, stressing scientific level and scientific value; the technical invention award shall be accorded to significant technical inventions, especially inventors of strategic high technology; the scientific and technological advancement award shall reinforce its directing functions on industrialization of high technology achievements, stressing independent intellectual property and economic and social benefits; the international scientific and technological cooperation award shall comprise bilateral and multilateral scientific and technological cooperation awards. The State premiere science and technology award shall be specially set up to give high rewards to outstanding personnel that make significant breakthroughs in contemporary scientific and technological frontiers, make great contributions to the development of science and technology, or create substantial economic or social benefits in technical innovation or the commercialization or industrialization of scientific and technological achievements.

    We shall encourage and regulate the various science and technology awards sponsored by social forces. Meanwhile, we shall strengthen management of regional, departmental and social awards. We shall streamline in great quantities the number of departmental and local awards and the number of the awarded projects, and change the universal condition that the treatment of scientific research staff is linked to the science and technology rewards. For science and technology awards, we shall establish objective and fair evaluation rules, complete the evaluation mechanism, and reinforce policy direction.

    The value of scientific and technological achievements is ultimately determined by whether it meets the need of the State and whether it controls the market and creates good benefits. We shall reform and complete the verification rules for achievements or products researched and developed. Achievements of governmental programs or projects shall be delegated to qualified social service intermediaries for objective evaluation, and shall be inspected and accepted in accordance with the contract.

    13. Strengthening management and protection of intellectual property. For scientific and technological projects funded by government budgets, we shall fully utilize information resources on intellectual property, pinpoint a high starting point, and avoid low-level repetitive research; for scientific research achievements accomplished, we shall emphasize the application of intellectual property regime to protect their lawful rights and interests; for inventors, designers, authors and principal executors of intellectual property acquired on their job, we shall give them remuneration or equity proceeds equivalent to their actual contributions. We shall strongly strengthen the spreading of intellectual property laws and training of the talented, and direct enterprises, scientific research institutes and higher educational institutions in establishing and completing intellectual property management system. We shall further enhance the consciousness on intellectual property protection and the sense of the law of the entire society, increase the momentum of intellectual property protection and law enforcement, investigate and punish firmly various tortious acts, and resolve cases on intellectual property torts or disputes promptly and effectively.

    IV. Strengthening the Party and the Government's leadership, advancing technical innovation in every aspect, developing high science and technology and realizing industrialization

    14. The Party's committees, governments and relevant departments at all levels shall fully recognize the necessity and urgency to strengthen technical innovation, develop high science and technology and realize industrialization, and actually strengthen leadership over this job. We shall carefully investigate and research, and according to the actual condition of the region and department, unbind our ideas, make bold innovations, and form scientific and technological and economic development strategies with local characteristics and advantages. We shall make concrete arrangements for transformation of scientific research institutes into enterprises, clarify the work targets and keys of technical innovation, and formulate feasible measures. We shall carefully generalize and spread the successful experience in different regions, strengthen supervision and inspection, and promote actively and actually the work with respect to technical innovation and the commercialization and industrialization of scientific and technological achievements.

    15. We shall complete legislation on science and technology, strengthen the construction of State innovation system, and strengthen cooperation. All regions and departments shall further reinforce the sense of the overall situation and the sense of the law, accelerate technical innovation and high science and technology development in economy, science and technology, education, management and all other aspects, and accomplish the process of industrialization. We shall fully utilize the advantages of the democratic parties, people's associations and civil organizations, and encourage them to actively make contributions. The relevant departments of the State Council shall cooperate closely, take active steps, and actively serve technical innovation and the commercialization and industrialization of scientific and technological achievements.

    Strengthening technical innovation, developing high technology and realizing industrialization is the significant measure for firmly implementing the strategies of developing a country through education and sustainable development advocated by the Party's Fifteenth National Congress. We shall, under the leadership of the Party's Central Committee with Comrade Jiang Zemin as the core, display the spirit of solidarity and cooperation and striving against hardship as embodied in the "two bombs and one satellite" program in the year, utilize the strong function of science and technology as the first productivity, endeavor to improve the general quality of the national economy, strengthen the integrated viability of our country, and advance our cause of socialist modernization.