The importance of basic research for Chinese industry to build core technology innovation capability

The core strategy for Chinese industries constructing global leadership is to improve the international competitiveness based on core technological innovation. One of the main problems in Chinese indigenous innovation process is the relative low proportion of basic research in R&D resources input, compared with the rapid growth of the total economy amount and R&D investment. There is an obvious phenomenon that most resources of R&D have been invested in test and development not in applied research or basic research. The paper gives a detailed analysis to the problem about the rule of resources investment for basic research to promote industrial technology innovation in China through the statistics of history data, focusing on the resources investment in basic research and its structural changes in China. Then the paper discusses the main problem in Chinese resources investment for basic research, namely three structural imbalances, is the relatively low investment as well as the irrational resources allocation structure, especially the low level of enterprises to participate in basic research. In the conclusion, the paper suggests that the lack of industry-driven basic research could not help Chinese basic research construct a close connection with industrial technology innovation, which making it difficult for Chinese companies to build industry leadership based on strong knowledge base.