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Fan Gang: Innovation in "no man's land" needs private enterprises more, and it is necessary to ensure the high profits obtained by innovation

author:Southern Metropolis Daily

Nandu News reporter Xia Jiawen "China does not lack state-owned enterprises, but lack of private enterprises that use their own money to take the risk of innovation. In this sense, state-owned enterprises are not suitable for risky innovation activities. On November 1, Fan Gang, a well-known economist, vice president of the China Economic System Reform Research Association and president of the China (Shenzhen) Comprehensive Development Research Institute, pointed out at the launching ceremony of the 2021 Guangzhou Private Enterprise Service Week that private enterprises play an important role in scientific and technological innovation, and it is necessary to develop private enterprises through the protection of property rights, and protect the high profits obtained by enterprises due to innovation through the protection of intellectual property rights.

Fan Gang: Innovation in "no man's land" needs private enterprises more, and it is necessary to ensure the high profits obtained by innovation

Fan Gang, a well-known economist, vice president of the China Economic System Reform Research Association, and president of the China (Shenzhen) Comprehensive Development Research Institute, made a report. Nandu reporter Li Zhanjun photographed.

Talk about scientific and technological innovation

Vigorously develop private enterprises and make good use of the "innovation fund" mechanism

In his report, Fan Gang pointed out: The national system of scientific and technological innovation is a characteristic of our country. "Catching up with existing technologies is not complete innovation. For the kind of innovation that 'comes out of nothing' and the innovation activities of 'no man's land', it is not suitable for the government to organize research. Fan Gang said.

"There is no shortage of state-owned enterprises in China, but there is a shortage of private enterprises that use their own money to take the risk of innovation. In this sense, state-owned enterprises are not suitable for risky innovation activities. Fan Gang pointed out that state-owned enterprises use the state's money and cannot bear great risks. On the contrary, private enterprises have more advantages in innovation and exploration, and they have more courage, and can bravely step into the "no man's land", focus on breaking through key core technologies, and find the next direction of innovation and development.

Fan Gang said that in order to truly realize scientific and technological innovation, it is also necessary to vigorously develop private enterprises. Specifically, the development of private enterprises through the protection of property rights also means that the high profits generated by entrepreneurs through innovation should be guaranteed through the protection of intellectual property rights. In addition, Fan Gang called for the establishment of a fault-tolerant mechanism so that enterprises that fail to innovate have an orderly exit mechanism.

Fan Gang also pointed out that the best government investment is not to subsidize enterprises, nor to "guide", but to use the "government fund to follow the investment" method, so that the private capital fund to evaluate the project and find value. The government "follows the investment" to share part of the risk to support and support the role of the market mechanism. For innovative projects that require long-term development to achieve results, Fan Gang suggested that government funds should play the role of long-term investors.

Talk about industrial development

There is no "sunset industry" only "surplus industry" The manufacturing industry still has great potential for development

"Someone asked me what industry would be good in the future? I would like to ask: Which industry do you think is not good? Fan Gang said that in most cases, there are only enterprises that do not do well, and there are no industries that do not do well.

"There is no 'sunset industry', only a 'surplus industry' in the short term due to the previous overheating. In the long run, there will be 'polluting industries' that must be relocated. Fan Gang pointed out that some high-tech and emerging industries have formed the so-called "outlet industry", which may develop rapidly in the short term, and enterprises will obtain high returns, but they are also facing greater risks, and most of them belong to the "burning money" family. In Fan Gang's view, changing the mode of growth and improving the quality of growth does not mean "changing production", and various industries still have long-term development prospects. In the domestic market, even low-end manufacturing still has long-term prospects for development.

Fan Gang suggested that on the one hand, the government should encourage innovation and entrepreneurship, on the other hand, help enterprises sort out and analyze the problems encountered in the process of development, encourage internal restructuring of the industry, encourage enterprises to survive the fittest, mergers and reorganizations, and make the industrial structure more optimized.

Fan Gang pointed out that key components, key components, key raw materials, etc. are all existing "short boards" in China's industrial chain. These areas are niche, require long-term investment, and belong to the "invisible industry". Fan Gang pointed out that it is precisely because of "invisible", there are relatively few competitors, as long as they persevere, use the spirit of craftsmanship for a long time, become a "hidden champion" will get huge profits, and enterprises can also get long-term stable development.

Written by: Nandu reporter Xia Jiawen

Photo: Nandu reporter Li Zhanjun

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