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PRIORITY DIRECTIONS FOR ENSURING THE INNOVATIVE ACTIVITY DEVELOPMENT AND
TECHNOLOGICAL PROGRESS OF CHINA
Goncharenko N.
V.N. Karazin Kharkiv National University PhD in Economics, Associate Professor, Department of International Economic Relations
Gamarli R.
V.N. Karazin Kharkiv National University Department of International Economic Relations,
Postgraduate Student
Abstract
In the course of the research, the main tasks of the national innovation system (NIS) of China, the features of its formation and functioning are analyzed. Promising areas of science and technology for introducing innovations in the context of ensuring the development of innovative activity and technological progress of China are identified. Based on the results of the study, strategic directions for the development of high technologies of China are identified, namely, projects in the field of medicine and healthcare, engineering sciences and new materials, life sciences, and computer science received the greatest financial support.
Keywords: innovative activity, intellectual property, national innovation system, research and development (R&D) expenditures, science and research project, scientific and technological complex, technology transfer.
Actuality of issue. The development of the economy along the path of innovation requires great attention from the state, R&D financing, and also a stimulating legislative base.
The current policy of China in the scientific and technological field is determined in accordance with the national plan for the development of science and technology in the medium and long term for 20062020. Of greatest interest is the intention declared in this document to strengthen "independent" (local) innovations. The emphasis on the development of local innovations is connected, first of all, with the fact that China's economic growth is to a large extent provided by the widespread use of foreign technologies, as well as by companies with foreign participation. In this case, automatic and fast transfer of foreign knowledge and technologies does not occur. To maintain high economic growth rates and stable development, China needs to develop its own technologies, mainly in the field of energy conservation and ecology, as well as introduce updated systems for organizing and managing production. In this regard, the Chinese government aims to create conditions for the rapid development of a scientific and technological complex based on national developments and achievements. These circumstances determine the relevance and actuality of the research topic in both scientific and practical directions.
Analysis of recent research and publications. Significant innovative development of the CHINA in the field of economics, science, technology, and high
technology in the context of globalization of world economic relations couse the growing interest of researchers from different countries [4, 7, 8, 18, 22].
Fundamental researches of the peculiarities of the national innovation systems functioning of the world countries, methodology for assessing the level of their innovative development are covered in the scientific works of such famous Ukrainian and foreign scientists: K. Akamatsu, X. Brooks, V. Vinja, N. Goncharenko, O. Dovgal, A. Eroshkin, E. Koblov, M. Kondratiev, M. Kremer, D. Caldwell, R. Lukas, I. Matyushenko, M. Popova, R. Solow, P. Romer, A. Fedirko, A. Shakhma-yev, T. Shterzer, Y. Shumpeter, Yu. Yakovets and others [3, 6, 10, 11, 12, 14, 17, 19].
The purpose of the article is the identification of strategic directions for the development of high technologies in the context of ensuring the development of innovative activity and technological progress of China in the context of globalization.
Statement of the main research. The strategy of "independent" (local) innovations provides, first of all, for increasing financial costs for research and development: by the end of 2020, they should amount to 2.5% of GDP. Costs in this area will amount to a huge amount, even though China is now the second largest country in terms of spending on science (purchasing power parity), second only to the USA [1, 2]. The second effective measure used by the Chinese government to stimulate and introduce innovation is the use of fiscal policy instruments. Thus, the legislation provides for the possibility of reducing the tax base by deducting from the gross profit up to 150% of R&D expenses.
Also, accelerated depreciation of research equipment worth up to 300 thousand yuan (about 49 thousand USD) is provided [21]. In addition, China intends to improve its technology procurement policy: priority should be given to local innovative products.
The main objectives of the NIS at this stage are formulated in the «Program of medium and long-term development of science and technology for the period until 2020» and the long-term strategy «Roadmap for the Science and Technology Development until 2050». In the Program adopted in 2006, it is planned to increase investments in R&D up to 2.5% of GDP by the end of 2020 and to ensure the "contribution" of science and technology to GDP growth of at least 60%. In accordance with the Program settings, by the end of 2020 China should reach the world level in 11 areas of science and technology (alternative energy, modern transport, robotics, biotechnology and nanotechnology, etc.), including 3-5 positions in each direction leading positions in the world [15].
In 2015, the Chinese government adopted an Innovation Strategy for Industry 4.0 - «Made in China 2025», within the framework of the long-term Innovation Strategy for 2050 and the 13 th Five-Year Plan [15]. The main priorities are:
• increasing productivity of China's innovation potential;
• facilitating the deepening of informatization and industrialization integration;
• strengthening basic science in industry;
• prioritization of quality and branding of the country;
• development of green production;
• promoting innovative breakthroughs in 10 key sectors - new generation information technology, robotics and production automation, aviation and space technology, high-tech ocean exploration equipment, the latest transportation technologies in rail, automobile transport, energy-efficient technologies, agriculture innovations, and biomedicine;
• restructuring of the manufacturing industry;
• development of services;
• increasing the level of internationalization of production.
The «Made in China 2025» strategy provides the creation of a 40 billion USD fund to finance innovation, start-ups and other projects within these priority areas. As a result of this strategy, China plans to present its products not as «made in China» but as «intelligently manufactured in China». Together with the «Made in China 2025» strategy, the Internet Infrastructure Development Plan «Internet Plus» was introduced to create a
supportive environment for the Fourth Industrial Revolution - smart technologies, mobile Internet, cloud programming, Big Data, and the Internet of Things.
In May 2016, the Chinese government adopted a new innovation development strategy that meets the key objectives of the Thirteenth National Five-Year Plan, the Medium and Long-Term Science and Technology Development Strategy 2006-2020, and the Science and Technology Roadmap 2050. The new strategy envisages three stages of the formation of China's innovative leadership: by 2020 - the formation of an innovative nation, by 2030 - the global innovation leadership of China, by 2050 - the world center of science and technology. According to the Government of China, innovative development is, firstly, a way of international competitiveness formation, secondly, the way of rebirth the Chinese nation as innovative, and thirdly, economic development should be based on an innovative model.
At the same time, it is planned to strengthen the independence of the national scientific and technological potential and ensure the development of innovative activity and technological progress based on self-reliance. So, in 2002, a law was passed that obliged public sector enterprises to focus on the domestic market when state purchasing goods and services (including technology and intellectual property). In some areas of the economy (renewable energy, air transportation), the transfer of foreign technologies is stipulated by the condition of mandatory participation of Chinese capital in the implementation of the project. At the same time, the share of national capital in joint projects with foreign partners is steadily increasing. If in the early 2000s it was 20%, it is now increased up to 80% or more.
As part of the policy of own technologies development, the Chinese authorities are increasingly forcing foreign corporations to share their technologies (in particular, in the production of air transport, semiconductors, nuclear reactors, aviation electronics, satellites, electric vehicles, in the energy and environmental industries, and protein research) with the state-owned companies [18].
Foreign companies doing business in China should also use a certain proportion of local components to manufacture their products. Thus, the business climate within the country is changing: preferences provided to foreign companies for locating their production in China are being reduced in order to develop their own enterprises with a higher degree of technological effectiveness.
The greatest financial support was given to projects in the fields of medicine and healthcare (22%), engineering and new materials (17%), life sciences (16%), and computer science (Fig. 1).
Fig. 1. Distribution of funds allocated by National Foundation for Natural Sciences to support projects,
by field of science,%, 2019 [compiled from 16]
Mathematical and physical sciences Mathematical and physical sciences Chemical sciences Earth sciences Informatics Life sciences Engineering and new materials Medicine and Health
16% 17%
22%
0%
5%
10%
15% 20% 25%
In the field of rocket and space technology, work is underway to create launch vehicles of a new generation, by which over the next 20-30 years China will launch payloads weighing 0.5-25 tons (now 9 tons) in low Earth orbits and 4 -15 tons (now - 5 tons) - to geostationary orbits. Successful work is underway on the formation in near-Earth orbit of the national satellite navigation system Beidou-2, similar to the American NA VSTAR GPS, European Galileo and Russian GLONASS, and the research of the moon's surface. Work is underway to create the first national space station in near-earth orbit [1, 2]. China has a leading position in the production of solar panels, most of which are for export.
Robotics is one of the key areas of the Fourth Industrial Revolution. Since 2013, China is the largest robotics market in the world, which continues to grow. Thus, according to the International Federation of Robotics, in 2019, 75% of the global robotics market was in five countries: China, Republic of Korea, Japan, USA, Germany [9]. In particular, in 2019, China's share was 37%, and the International Federation of Robotics is projected to grow up to 42% in 2020. According to the Chinese Robotics Industry Alliance, there are 400 robotics companies in China, but according to the Robot Report database, 194 companies are taking part in shaping the global robotics market, including China. 75 companies are manufacturing industrial robots [9].
The use of high technology also covers the biological sphere. Thus, in China, the production of highly productive and genetically resistant to disease breeds of poultry and all types of livestock plays a large role. This allowed China to become the world's largest producer
of pork and poultry meat. Research in biotechnology has allowed the creation of genetically modified cows, sheep and pigs with low fat content and high - lean meat. In addition, more than 400 scientific genetic centers for the reproduction of wild animals have been created in the China [21].
The strategic direction of the development of high technology is the field of energy. China is one of the largest importers of energy resources in the world. The problem of providing electricity to all economic entities in sufficient quantities can be solved by introducing energy-saving technologies.
In the financial sector, China is also working on introducing new technologies. In October 2009, the ChiNext stock market was created. It appeared on the basis of the Shenzhen Stock Exchange. ChiNext specializes in stocks of companies operating in innovative areas, and is the Chinese version of NASDAQ.
Thus, in order to solve the problem of increasing the level of innovation of local products, the government of China is constantly increasing the level of scientific and technical development of the population, including through the implementation of the Program, increasing the requirements for the foreign companies carrying out scientific research and producing their goods on the territory of China, provides preferential conditions for resident enterprises.
In 2018, China spent nearly 420 billion USD on research and development, or 2.12% of its GDP (Table 1). At the same time, 74% of investments were provided by business structures [20].
Table 1
R&D expenditures in the BRICS countries in the period 2006-2018_
R&D expenditures, bln dollars US, PPP (at current prices) R&D expenditures as a percentage of GDP
2006 2009 2012 2015 2018 2006 2010 2012 2015 2018
Brazil 21,7 28,8 34,8 41,1 45,6 0,99 1,12 1,13 1,28 1,33
Russia 22,9 34,7 37,9 38,1 39,8 1,07 1,25 1,05 1,10 1,15
India 29,4 39,4 48,1* 50,1 52,3 0,80 0,84 0,83* 0,62 0,73
China 105,6 185,3 292,2 408,3 419,2 1,37 1,66 1,91 2,06 2,12
South Africa 4,6 4,8 4,8 5,8 6,1 0,90 0,83 0,73 0,80 0,85
* India - 2013
Source: [13, 16, 20].
Regarding to government spending on research and development, they are gradually reduced. The strategy of reducing the role of the state in financing the scientific and technological complex is an important characteristic of China's policy in this area. The state's share in the appropriations for the development of science and technology is gradually but steadily declining. The reason for this trend is primarily associated with a focus on the most effective practical implementation of scientific and technological achievements in production. This approach involves the focus of scientific research on the results of end-consumers, which should invest in appropriate developments. It should be noted that at this direction China has achieved certain successes, and technological advances are increasingly being funded from the own funds of enterprises. Companies in the high-tech sector of the economy donate funds for technological innovation.
On average, R&D expenses of high-tech enterprises amount to 4.46% of the value added of manufactured products. However, in some areas of Chinese industry, this figure is much higher: for aircraft and rocket engineering enterprises it is 13.3%, and for the electronic and telecommunications industries - 5.84%. In other areas, such as pharmaceuticals, medicine, and computer technology, research costs do not exceed 23% [1, 13].
Conclusions: The factor of novelty and speed plays a decisive role in the survival and relevance of the company's products, a simple cost reduction in the modern world does not always bring competitive advantages. Thanks to the adopted course, the number of international patents is steadily increasing, the share of production of own high-tech products is growing, and the most ambitious projects are being implemented. China managed to create a national scientific, technical and design base that allowed it to produce competitive samples of aviation and rocket and space technology and to stand on a par with countries such as the United States and France.
The innovative policy pursued by China in the real sector of the economy, in the field of finance, is one of the factors of its economic and social progress.
An important step in China's policy in the field of research activity and rights registration to its results was the permission (under the influence of the American Bay-Dole Act) to commercialize intellectual property created in the framework of state-funded research projects. It has also become possible to transfer to the
university or research institute (work performers) the rights to the results of intellectual activity resulting from the implementation of state-funded research projects, instead of turning them into intangible assets owned by the state.
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Ф1НАНСИ БЮДЖЕТНИХ УСТАНОВ: В1ННИЦЬКИЙ М1СЬКИЙ ЦЕНТР ЗАЙНЯТОСТ1
Алескерова Ю.В.
д.е.н., професор кафедри фтанав, банювсько'1 справи та страхування ВНАУ, Украша Тодосшчук В.Л. К.п.н., доцент кафедри адмiнiстративного менеджменту та альтернативних джерел енерги ВНАУ, Украша Фадеева М.С. Магктр ВНАУ, Украша
FINANCIAL INSTITUTIONS FINANCES: VINNYTSYA CITY EMPLOYMENT CENTER
Aleskerova Yu.
Doctor of Economics, Professor, Department of Finance, Banking and Insurance Vinnytsia National Agrarian University Vinnytsia, Ukraine
Todosiichuk V. Ph.D., associate professor Vinnytsia National Agrarian University, Ukraine
Fadeeva M. Master's degree, Vinnytsia National Agrarian University, Ukraine
Анотащя
Дослщжено сутнють аналiзу фшанав бюджетних установ, теоретичш аспекти дано1 теми. Проведено аналiз фшанав Вшницького мюького центру зайнятосп як бюджетно1 установи. Доведено, що фшанси бюджетних установ залежать ввд бюджету держави та 1хнього кошторису. Abstract
More information on the analysis of the financial budgetary attitudes, theoretical aspects given by those. An analysis of financial support of the Vinnyts'ky city center for the employment of a budgetary institution was carried
