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Entrepreneurship, innovation get boost amid slowing growth

By Wang Yanfei | China Daily | Updated: 2016-02-06 14:38

Mass entrepreneurship and innovation will continue to be the driving forces for economic growth amid downward economic pressures this year, top officials said on Friday.

"Encouragement for mass entrepreneurship and innovation plays a vital role in boosting strategic emerging industries' contribution to overall economic growth," said Shen Zhulin, deputy director-general of the Department of High Technology Industry under the National Development and Reform Commission, the nation's top economic planner.

Strategic emerging industries, mainly in high-technology sectors, contributed 8 percent to overall economic growth last year, hitting the target set by the 12th Five-Year Plan (2011-2015).

Its contribution is targeted to reach 15 percent by 2020, according to the State Council.

Shen said that the contribution of strategic emerging industries is expected to increase this year, after the country sustained a "good enough" 6.9 percent growth rate last year.

Government support, including tax breaks, measures to streamline administration and simplifying business registration, led to a surge in new innovative businesses, Zhao Gang, head of the trademark department under the State Administration for Industry and Commerce said.

China waived more than 300 billion yuan ($46.15 billion) in taxes last year, as tax breaks designed to encourage the development of high technology totaled 140 billion yuan, according to the State Administration of Taxation.

Patent applications for inventions rose by 20 percent, and the number of patents approved saw a 62 percent increase year on year, according to the State Administration for Industry and Commerce.

Entrepreneurship, innovation get boost amid slowing growth

"A strong invention capability mean that mass entrepreneurship and innovation can be a long term sustainable force to boost the economy," said Zhao, responding to the views of some commentators.

Around 780,000 enterprises canceled their registrations last year, making up less than one fifth of the newly established ones, according to Zhao.

The government will continue to support mass innovation with more specific policies, said vice-minister for Science and Technology, Yin Hejun, echoing a statement released by the State Council earlier this week.

The government will also encourage the use of idle factories as entrepreneurship and innovation hubs, with government subsidies for rent, utilities and Internet access, according to the statement.

High technology and innovation industries will be given priority, the statement said.

"Further support will also be given to young college entrepreneurs as well," said Shen, even as the number of people opting to be entrepreneurs increased by 6.8 percent year on year.

The number of courses offered by universities on entrepreneurship and innovation has increased by 14 percent in 2015 compared with the previous year, the Ministry of Education said.

wangyanfei@chinadaily.com.cn

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