MECHANISMS OF STATE SUPPORT FOR INNOVATION IN THE PRC IN THE CONTEXT OF ITS INNOVATIVE DEVELOPMENT
Abstract
The article presents the results of research into the practice of using state support mechanisms for innovation to stimulate the innovative development of China in the context of globalization. The purpose of the article is to analyze the tools of state support for innovation in the PRC and to identify the main areas for improving their effective use. In the course of the research, the mechanisms for state support for innovation in the PRC are identified, namely: direct and indirect budgetary financing of research organizations and universities in the form of targeted financing of operating expenses, as well as the allocation of targeted grants and placement of government orders for the implementation of research and development (R&D); tax preferences provision to R&D enterprises; investment of budgetary funds in the capital of venture funds; allocation of preferential state loans and credit guarantees to subjects of innovative activity; implementation of targeted public purchases of innovative products and services; financing of business incubators, technology parks and other innovation activity infrastructure. It is concluded that in the current conditions of innovative development of China the complexity and scope of financing mechanisms for Science, Technology, and Innovation (STI) are growing on the basis of advanced concepts that take into account the growing economic value of knowledge and their flows and are aimed at improving the efficiency of innovation, developing interaction and cooperation at the regional, national and international levels. It has been found that a wide range of tools is being used to provide financial support to growing innovative companies in the PRC. These include, first of all, various credit guarantee and investment mechanisms designed to stimulate inflows of venture capital and bank loans. In addition, other methods of government support for small high-tech companies are actively applied, including grants for start-up research and development work on their venture projects, as well as the creation of business incubators and technology parks, which provide favorable conditions for the growth of such companies.
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