I. The Guideline

        The guideline is to carry out the strategy of rejuvenating the nation by relying on science and technology in a comprehensive way, reinforce technology innovation, develop high-tech industry and realize associated industrialization, and improve the sustainable S&T innovation capacity science and technology. The shortened form is "innovation and industrialization".

II. Six Important Principles

        The first one is to tightly surround the major line of adjusting economic structure and make "innovation and industrialization" the subject of the S&T development in the 10th "Five-Year Plan". The second one is to follow the development in a holistic way, and make breakthroughs in some priorities, and realize the leap-forward development of productive force by realizing the leap-forward development of technology. The third one is to promote S&T innovation by system innovation and form an open managerial system and integration mechanism. The fourth one is to promote the coordinated S&T development in different regions and areas. The fifth one is to reinforce independent innovation in an open S&T system. The sixth one is to fully mobilize the innovation and entrepreneur initiative on the part of scientific and technological personnel in the spirit of doing all work by relying on scientific and technological personnel.

These six important principles are the relations of six important aspects.

        The first principle refers to the relation between the subject of S&T development, namely, "innovation and industrialization" and the major line of economic development, namely, the adjustment of economic structure. The major line is the main battle field which the science and technology service. We should hold the subject by surrounding the major line. In order to hold the subject, deployments should be made on two tiers, namely, promoting the supporting capability for the social and economic development and improving the sustainable innovation capacity of science and technology. The priority of the first tier is to overcome the key technologies in the structural adjustment, greatly promote the development of high tech industries and actively transform the traditional industries with high technologies, and serve as a pioneer and supporter in the work of propelling industrialization by using informationization. The priority of the second tier is to reinforce the high-tech research and basic research and to provide sources and stamina for the innovation, industrialization and structural adjustment.

        The second principle refers to the relation between priority and the whole. Giving prominence to priorities is the focus and the key. Only breakthroughs are made on priorities can the technology leap-forward be realized, can the whole S&T level be enhanced and the whole development be followed. Therefore, we should cling to some limited objectives and intensify the support for these objectives. We should focus our human resources and material resources, and get a batch of key and large projects done, and achieve a batch of great achievements, and form a batch of new industries with regional characteristics. The lesson of blindly spreading out our efforts should by no means be repeated.

        The third principle is the relation between system innovation and S&T innovation. System innovation and S&T innovation are the driving force of economic development and structural adjustment, and the reform and innovation of S&T system is the driving force of S&T innovation and development. All reforms and system innovations should be done by surrounding S&T innovation. All S&T development work should be driven by reform and innovation. Under the prerequisite of giving prominence to national objectives, innovations in system, mechanism, management, planning, and ideas should be reinforced by bring the role of market mechanism and competition mechanism into full play. We should make the building an open system and integrated system as the breach in the reform of S&T management in the 10th Five-Year period which enables different regions and different departments to use their own unique advantages to actively take part in competition and cooperation, thus forming a resultant force and comprehensive advantage and achieving the goal of a win-win outcome.

        The fourth principle is the relation between the state and the region. We should do a good job in the arrangement of the S&T work in the 10th Five-Year period in the spirit of innovation which will be a single chessboard for the whole country without sacrificing distinctive regional characteristics. In the case of the state, full attention should be given to the coordinated development in different regions with developing the west region as a priority. Different regions should make efforts to develop characteristic sciences and technologies and promote the development of unique economy based on their own conditions and in line with the requirements of economic development and economic structural adjustment.

        The fifth principle is the relation between opening-up enlargement and independent innovation. Enlarging the opening-up is the means, while enhancing the independent innovation capability is the aim. Only with the enhancement of independent innovation capability can we have the ability and qualification to conduct more international cooperation and take initiative in the fierce international competition. We should learn from others' strong points for our own use to enhance the independent innovation capability, the independent innovation capability in the high-tech field in particular. An important objective and principle of the S&T work in the 10th Five-Year period is to create more independent intellectual property rights.

        The sixth principle is the relation between scientific and technological personnel and S&T innovation. The S&T innovation should rely scientific and technological personnel. The S&T plan of the state, different regions, and different departments should be made into scientific and technological personnel oriented ones. The construction of the scientific and technological personnel team should be a priority of the S&T plan in the 10th Five-Year period. In the construction of scientific and technological personnel team, besides cultivation and introduction, great importance should be attached to the mobilization of their initiative and creativity and stimulation of their enthusiasm for innovation and carving out their own careers. The key lies in the establishment of a new mechanism to create a good policy and social environment.

III. The working objectives are as follows:

        To remarkably improve the industrial technical level and associated international competitiveness; To substantially enhance the innovation capacity of the high-tech field; To propel the basic research into a new stage; To provide relatively strong S&T support to the coordinated development of population, resources, and environment for the sake of improving people's living standards; To make great headway in the reform of S&T system; To preliminarily establish a new plural and socialized S&T financing and investment system; To remarkably enlarge the S&T investment of the whole society; To make great headway in the construction of S&T personnel team; To gradually perfect S&T infrastructures. Among these objectives, some are S&T output objectives; while others are S&T input objectives.

The major indices by 2005 are as follows:

        1. The technical levels of China's major sectors such as agriculture, industry and service reach the level of developed nations in the mid-1990s with some fields mounting to the world advanced level;

        2. The added value of the high and new technology industry accounts for more than 20% of the added value of industry; the export mount of high and new technology products accounts for more than 20% of the total export amount; the application number of patent of inventions in the high and new technology field increases 80% over that of 2000; a few numbers of high and new technology industrial development zones with international advanced level should be established.

        3. The level of basic research enters into the first 5 to 10 places of the whole world.

        4. The supporting capability of promoting the coordinated development of population, resources, and environment for the sake of improving people's living standards should be significantly enhanced.

        5. The structural adjustment of scientific research organizations should be basically accomplished; a relatively reasonable overall arrangement of S&T forces should be achieved; the basic framework and operating mechanism of the state innovation system should be preliminarily established, a batch of research bases should be formedand a scientific research system for public well-being should be preliminarily established; a S&T intermediately organization system should be cultivated and enlarged; a new S&T planning and management system should be established.

        6. The percentage of social R&D budget in GDP should be raised to 1.5% or above, among which 50% or above are from enterprises and the S&T investment of high and new technology enterprises accounts for 5% or above of the annual sales revenue.

        7. Full-time scientists and engineers engaged in R&D should reach 900,000 persons per year.

        8. A dozen of key science projects amounting to international level should be newly-established, and a top-ranking scientific research network in the world should came into being, the S&T infrastructures such as the basic S&T conditions and instruments and equipments should be remarkably improved.