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Encouraging Mass Entrepreneurship and Innovation with Market Mechanism

2017-03-24

 

Tian Jietang, DRC

2017-2-13

To encourage people to make business startups and innovation is a significant strategic decision made by the Central Government after China’s social and economic development entered a phase of new normal. We need to be fully aware of its historical significance for social transformation, push forward the supply-side structural reform, promote the implementation of policies related to mass entrepreneurship and innovation, and enable the market to play a decisive role in resource allocation so that people’s wisdom and creativity will shore up the social and economic development of China in a big way.

First, mass entrepreneurship and innovation is a strategic option in line with China’s economic development in the new normal. Only by fully relying on the people and actively promoting business startups and mass innovation can we achieve the historical mission in the new era.

Second, mass entrepreneurship and innovation could stimulate new drivers of growth and lead the reform of innovation and cultural system. 1. Mass entrepreneurship and innovation could invigorate new drivers of economic growth. China’s economic development featured by new industry, new forms of business and new business models is gaining momentum, providing new vitality to economic transformation and upgrading. 2. Mass entrepreneurship and innovation has played an important role in leading the profound changes of traditional innovation system. The aim of mass entrepreneurship and innovation is to clarify the respective roles of the government and the market played in mass innovation drive and allow the market to play a decisive role in resource allocation. 3. Mass entrepreneurship and innovation contain profound changes of innovation culture. Mass entrepreneurship and innovation could bring into full play the creativity and initiative of the people and change traditional thinking patterns as well as social structure. Therefore, it is of positive significance for cultivating an innovative culture and an innovation-oriented social development.

Third, deepening reform could provide broader market space for mass entrepreneurship and innovation. In the reform to streamline administration and delegate powers to lower levels, we need to adhere to the principle of combining power delegation with effective regulation in an integrated manner. In addition, mass entrepreneurship and innovation and reform could supplement and complement each other.

 

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