The Incentive Environment of Chinese Enterprises' Innovation

In the critical stage of building a well-off society, China has put forward scientific progress and innovation as its primary driving force for economic and social development, as the central section for adjusting the economic structure, changing the growth patterns, enhancing the country's competitiveness, building an innovative-oriented country and development strategy, to improve its independent innovative capability. Every Enterprise's innovation is based in a specific institutional environment and the success or failure of an innovation is mostly affected by institutional arrangement. The process of innovation not only involves enterprises, but also every aspects of the social and economic environment which are related to an enterprise. In order to expedite the independent innovation of Chinese enterprises, it needs to build an institutional power system, network and governance of environment, spontaneous power system and governmental catalytic system.