Promoting construction of China’s modern industrial system by “multi-tracking” research and innovation model

The core of the competition between large nations during the fourth industrial revolution is centered on economic resilience, which is based on the industrial system of each nation. The key takeaway from the historical experience of industrial development in the United Kingdom and the United States is that the building of a modern industrial system must prioritize the balanced development of industries rather than concentrating solely on the financial and service sectors and ignoring the manufacturing sector, which leads to industrial hollowing-out. China ought to build a modern industrial system that possesses the five characteristics, including industry comprehensiveness, large capacity, a wide variety of economic activities, high density of economic activity, and advanced technology. The essence of building a modern industrial system is to cultivate new industries while upgrading traditional industries, both of which rely on the generation of innovative technologies. The current institutional shortcomings that hinder the realization of technological innovation in China include structural fragmentation of the talent cultivation system, bias in the definition of talent, improper design of research projects and review systems, disconnection between basic research and applied technology, lack of scientific understanding of enterprises-universities-researches integration, and over-regulation of emerging industries. To overcome these drawbacks, China should promote the establishment of a large and integrated science and technology innovation system, using a “multi-tracking” model, which consists of technology demand-led innovation, a traditional innovation mode with basic research conducted by universities and research institutions, and leveraging artificial intelligence for technology innovation. In the meantime, China should establish special science and technology innovation zones in specific geographic and functional areas and implement pilot reforms of institutional mechanisms in these zones.