Basic research determines the scope of scientific and technological innovation, Premier Li Keqiang said at the first plenary meeting of the national science and technology leadership group on Dec 6.

The proportion of basic research expenditure to research funds in all of China still lags far behind advanced countries, the Premier said.

“Scientific and technological innovation, especially basic research, needs investment of real money, but it is not enough to rely solely on the government, because in most cases, innovation achievements are not produced by administrative plans, but by trials and errors in markets,” he said.

Therefore the market should play a decisive part in resources allocation, which includes science and technology resources, with the government giving proper guidance, the Premier said.

The government, while drawing up policies, should give consideration to cutting red tape in market entities, research institutes and personnel, in order to motivate their vitality and creativity, he added.