Abstract: China's technological innovation system is divided into three stages: the fundamental innovation stage of “0 to 1,” the research commercialization stage of “1 to 100”, and the mass production stage of “100 to 1 million.” Currently, China's “0 to 1” stage is relatively weak, mainly due to insufficient investment. In the next 10-15 years, it is necessary to increase the proportion of funding for this stage in GDP to 20% by 2035 to catch up with the average investment level of developed countries. In the “1 to 100” stage, there is an urgent need to cultivate professional commercialization teams and continue to optimize incentive mechanisms, where the common practice of “three 1/3” in the distribution of intellectual property revenue can serve as a good reference for effectively enhancing the conversion rate. The “100 to 1 million” stage involves full interaction with the capital market. A capital market that truly supports the sci-tech industry needs to provide long-term tracking and professional management of various rounds of financing throughout a company’s listing process, sharing the risks and rewards of innovative development and avoiding speculative practices. Furthermore, there is a need to further improve the institutional arrangements of the Sci-Tech Innovation Board and its delisting mechanism.
