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Part 1 Using Knowledge to Create Society and Economy for a New Era
Chapter 2 In the Era of Mega-Competition for Knowledge
Section 1 Foreign Countries Devoting Effort to Social and Economic Development Through Innovations
2. Innovation Systems of Other Countries

In foreign countries, science and technology policy implemented by governments with the objective of economic growth and strengthening competitiveness make up a large element that stipulates the innovation system of that country.

(1) USA

The innovation system of the US, which has achieved the highest level of success in creating innovations, was formed by the clarification of national goals and the resultant research and development expenditure invested abundantly due to the requirements of national security and space development competition after two world wars and during the subsequent Cold War. The characteristics of the US innovation system are as follows, and it should be noted that this US innovation system is used as a model for the innovation policy of various countries.

(1) Resources invested in research and development are overwhelmingly large compared to other countries.
(2) A high percentage of overall research expenditure is shouldered by the government
(3) Policy that places priority on intellectual property (Pro-Patent Policy)
(4) Large proportional weight of venture companies
(5) Strong collaboration between industry and universities

(2) China

China's innovation policy is carried out based on the government's policy to promote technology transfer and market mechanisms. In China today the research and development capacity of companies remains low, so the nation's research institutions and universities themselves start up companies, directly transferring research achievements. However, a variety of problems remain, such as the lack of incentive among researchers and engineers with regard to the transfer of achievements of science and technology and the research and development capability of companies, so the Chinese government is setting forth a new direction for innovation policy, such as redeveloping its research and development framework and assigning incentives for the transfer of achievements of researchers and engineers.

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