Double Engines: Technological and Institutional Innovation

Technology revolution, industrial restructuring and economic globalization have sped up since the financial crisi. Technological innovation plays an increasingly significant role in reshaping the pattern of the world. The slow recovery of global economy, increasing pressure of economic downturn in many provinces and municipalities, and the new normal of China’s development become the most essential elements of the era for national governance and decision making. Without reform and institutional innovation, technological innovation would not be possible. In the other way round, technological innovation brings about practical demands for and pressure on reform. The strategy of innovation-driven development emphasizes all-round innovation with a key role attached to technological innovation , an increase in the share of contribution made bytechnological advance to economic growth, and a discovery of new driving forces of growth. At present, construction of the innovation centers, demonstration zones, free trade zones, as well as ”the Belt and Road Initiative” infrastructures grows like wildfire in various places of China. Popular entrepreneurship and innovation spreads over the whole society. The double engines – institutional innovation and technological innovation – gradually make progress. At the same time, major countries of the world have put forward their new innovation strategies and foreign cooperation policies in the hope of gaining greater achievements in high-end industries and real economies. How to rationalize the relationship between government and market to develop a good innovation and entrepreneurial eco-environment? How to further break the system barriers to unleash innovation vitality and innovation achievements? How to further perfect the system for the commercialization of achievements to benefit economic development and people’s livelihood? How to further optimize resource allocation to reach the dynamic integration of the national and regional goals? How to further adjust innovation strategy and policies to make international innovation cooperation more fruitful both in size and in quality? These are all important strategic issues that need to be discussed and solved in time.