Huawei Innovation

The level of innovative activity is an important indicator of a business’s innovative capability. A business with high innovative capability can gain a competitive edge and ensure its share in the global market. In recent decades, the businesses are blooming in China, and the government has carried out many policies to encourage the development of the businesses. However, since China’s entry into WTO, it has been increasingly realized that the Chinese companies are not as competitive as those in developed countries, and one of the most important reasons is the lack of innovative capability. Chinese companies are often accused of the infringement of the intellectual property and patents. In order to increase the business’ competitiveness in the global market, the government has made the improvement of the innovative capability one of the major tasks and the national strategy in the eleventh “Five Year Plan”. In the “National Program for Medium-to-Long-Term Scientific and Technological Development” issued on February 6, 2006, sixty policies are made to increase the businesses’ innovative activity. They are divided into the following six categories:

1. Government investment in science and technology: this policy aims to give support to the fundamental research, technological research for public welfare and frontier technology research. It also focuses on building up a service system for the technological innovation in the businesses.

2. Tax incentive policy：This policy allows the businesses to deduct an mount equal to 150% of the technological expenses actually incurred in a year from the total tax amount the businesses have to pay for the year.

3. Financial support: This policy is carried out in ways of encouraging the building of Small and Medium enterprises credit guarantee organization, establishing pilot projects for the pledge of intellectual rights, promoting the share transfer of high-tech enterprises and approving the qualified high-tech enterprises to issue corporate bonds.

4. Government purchase: It is stipulated in the policy that for the major projects invested by local and state government, the domestic equipments can not be less than 60% of the total purchase value. When purchasing foreign products, those whose technology is transferred to the Chinese companies are put as the first priority, based on the principles of benefiting the enterprises’ automated innovation.

5. Create and protect the intellectual property right: This is to encourage the enterprises to take active part in the setting of International technical standards.

6. Team talent: This is to focus on cultivating and attracting elite, improving the scientific credit system and supervising the credit of individuals and organizations that are responsible for the state science and technology projects and those who are involved in the management.

Faced with intense competition in the global market,