Development of China’s ultra-precision equipment industry and support of patient capital

As a core field of high-end manufacturing, China’s ultra-precision equipment industry has achieved rapid development driven by policy support and technological advancements. Nevertheless, it still faces challenges such as technological bottlenecks, international competition, and funding shortages. Its characteristics—long R&D cycles, high risks, and substantial capital investments—are misaligned with the risk-averse nature of traditional financial systems, urgently requiring the support of “patient capital”. Although China possesses a vast pool of long-term capital (e.g., social security funds and insurance funds), systemic gaps prevent these funds from being effectively transformed into patient capital that supports frontier technologies. This study argues that developing patient capital necessitates establishing a scientific and technological credit system, leveraging the bridging role of strategic scientists, and bridging the gap between scientific and technological innovation and capital integration. Current investment models, including government funds, corporate direct investments, financial asset investment firms, and specialized funds focusing on ultra-precision equipment, face issues such as limited decision-making flexibility and low risk tolerance. To address this, the study proposes policy measures to strengthen the role of strategic scientists in financial institutions, support technology-transfer funds, optimize conditions for insurance capital participation, and provide tax incentives. These efforts aim to build a multi-tiered patient capital ecosystem, overcome “bottleneck” technologies, and promote industrial upgrading.