The national plan on scientific and technological innovation approved at the State Council executive meeting on July 20 is significant to China’s economic upgrading and the growth of an innovation powerhouse, according to Xinhua News Agency.

Analysts say the plan during the 13th Five-Year Plan period (2016-20) will lead the new economy and change people’s lives.

Original innovation — a weak point in China’s scientific and technological development — is given much attention in the plan, which says that China should strengthen research in both basic and cutting edge technology by starting a series of projects.

Research will focus on two aspects, according to the Ministry of Science and Technology. First is core industries in national security and strategy, including energy, information, space and aerospace technology and marine science. Second is fields concerning people’s livelihood, such as food, environment and medical service. For example, projects on quantum communication, precision medicine, clean and efficient energy and smart robots will be launched soon.

Scientific and technological progress should contribute to 60 percent of economic growth by 2020, up from the current 55.1 percent, the plan says.

It also says enterprises should be the pillar of innovation, calling for reform of State-owned enterprises to boost their innovation capacity. In order to achieve that, integration of capital and technology, and collaboration between enterprises and institutes will be encouraged.

Reform of research management is also highlighted. Research funds should be managed in a more effective way, the plan says. And more incentives should be created for researchers, including reasonable benefits distribution of innovation achievement and effective protection of intellectual property rights.

“Many tough nuts await cracking during the reform,” says Xinhua, adding that some laws, regulations and policies should be refined to support innovation.