THE ability of private enterprises to play a significant role in technological innovation lies in intense market competition and their strong profit-driven guidance. Without innovation, these businesses cannot survive.

The role that businesses, especially private companies, play in technological innovation is vital to the construction of an innovative nation and high-quality economic development. Recently, the first meeting of the Central Comprehensive Reform Commission reviewed and approved documents such as Opinions on Strengthening the Principal Status of Enterprise Technology Innovation and Opinions on Promoting the Development and Growth of the Private Economy. The meeting specifically mentioned “actively encouraging and effectively guiding private enterprises to participate in major national innovations”, indicating that policymakers hold high hopes that private enterprises can spur technological innovation, regarding them as “our own family”.

This expectation is grounded in fact. China’s private enterprises contribute over 70 per cent of technological innovation achievements, encompass 80 per cent of the nation’s specialised and innovative small giants and 90 per cent of high-tech enterprises. According to the 2022 Top 1,000 Private Enterprise Innovation Status report released by the All-China Federation of Industry and Commerce, the total research and development (R&D) spending of the top 1,000 private enterprises in China was 1.1 trillion yuan, accounting for close to 39 per cent of national R&D investment and just over 50 per cent of corporate R&D expenditure. The year-on-year growth rate was 23.1 per cent, which was 8.5 percentage points higher than the national average. Additionally, the total number of R&D personnel was 1.65 million, accounting for about 13 per cent of total employees and almost 29 per cent of R&D personnel nationwide. It is evident that the technological innovation of private enterprises is not only fruitful but also highly efficient.