Innovation System for Chinese Modernization: Connotations and Strategic Priorities

Chen Jin1, 2, Wu Feng*1, 2

1 Tsinghua University School of Economics and Management (Tsinghua SEM), Beijing, China

2 Tsinghua University Research Center for Technological Innovation (RCTI), Beijing, China

Abstract: The modern innovation system with Chinese characteristics serves as a critical foundation for achieving China’s strategic goal of becoming a global leader in science and technology, promoting high-quality development, and advancing comprehensive modernization. This paper offers a systematic theoretical exploration of the system’s connotations and key areas of focus. It begins by tracing the conceptual origins of innovation systems and their development in China, analyzing the evolution of the national innovation system and the theoretical basis for improving its overall effectiveness. Building on this, the authors examine the evolving characteristics of China’s innovation system, including the shift from technology introduction and imitation to independent innovation, the emergence of a post-Schumpeterian innovation paradigm, the refinement of localized innovation theories, and a comparative assessment of Chinese and international innovation models. This paper explains the core characteristics of the innovation system with Chinese characteristic. Finally, it identifies five key strategic priorities: Guiding the modern innovation system’s efficient operation through the pursuit of new quality productive forces; enhancing resource allocation by deeply integrating scientific, technological, and industrial innovation; fostering a demand- and scenario-driven, digitally empowered innovation ecosystem; improving innovation governance through institutional and policy reforms; and strengthening the transformation mechanism for scientific and technological achievements to maximize innovation value.

Keywords: Modern innovation system with Chinese characteristics; Post-Schumpeterian

JEL Classification Codes: O31;L52;P48

DOI: 10.19602/j.chinaeconomist.2025.11.02