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Innovation and entrepreneurship help reverse economic downturn

Updated: Aug 12,2015 1:47 PM

The policy for mass innovation and public entrepreneurship helps turn creative ideas into reality and transform human resources into human capital. It also promotes more originality from society to further develop productivity.

Innovators and entrepreneurs are not born that way, but trained by the market. As the policy is implemented, various new industries and models have already emerged, which has effectively stimulated social vitality and is a highlight of the country’s economic development.

Some say it is not appropriate to promote innovation and entrepreneurship extensively as they involve substantial risk and cost, which should only be the privilege of a few specialists. But this view has been proved wrong in practice.

On the one hand, innovation and entrepreneurship help develop new engines and drive the restructuring of the economy, as a healthy economy requires many market participants, flexible regulatory mechanism and orderly competition.

For a giant economy like China, domestic market demand cannot be met by only a small number of participants. Innovation and entrepreneurship are not meant to only facilitate the free flow of market elements such as labor forces, capital and goods - they should also push the reform of various inadequate systems, so as to improve efficiency. Additionally, the continuation of market vitality calls for cultivating new engines in critical areas.

On the other hand, people will benefit from innovation and entrepreneurship as their livelihood is expected to be greatly improved by various forms of creation in society.

However, innovation and entrepreneurship also require a great deal of effort. Many world-class Internet giants, such as Alibaba Group Holding Ltd, were created at the grass-roots level but became powerful through continuous innovation.

And the rapid development of new technology, such as the “Internet Plus” model, has brought more opportunities for ordinary people to innovate and start their own businesses. In recent years, the upgrade of broadband networks, spread of mobile communication terminals and automated production management have provided higher platforms for people to fulfill their dreams.

The first half of this year has witnessed a double-digit growth in the added value of the hi-tech industry. Online retail sales also increased by 40 percent on the basis of the high rises of the past two years. The growth rates for new industries, such as robots and new energy automobiles, have also increased dramatically.

Therefore, the policy for innovation and entrepreneurship has been crucial in terms of securing growth, withstanding risks and expanding employment - especially when the country is faced with the tremendous pressure of the economic downturn.