Editor's note: As a new phase of scientific and technological revolution unfolds, global competition in basic research has intensified. Justin Yifu Lin, dean of the Institute of New Structural Economics at Peking University, spoke to ThePaper.cn about China's strengths and weaknesses in basic research, strategies to address the challenges, and the roles of the government and businesses in advancing this critical area. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

China has made significant strides in many industries, and is even leading in sectors such as home appliances, shipbuilding and new energy vehicles. When a country reaches the technological frontier in any area, it should make breakthroughs on its own instead of relying on other countries for new technologies.

China has notable strengths in basic research, including a vast talent pool from its 1.4 billion population. The country produces the largest number of science, technology, engineering and mathematics graduates globally, offering immense potential for an engineering workforce. The country's system for mobilizing nationwide resources is another advantage.

However, significant challenges persist in basic research. While developed countries have built systems for nurturing a steady stream of top-tier original research talent, China hasn't established such a system, focusing instead on importing foreign technologies to catch up with other nations.

A critical challenge is the research evaluation system, which overemphasizes quantitative metrics such as paper counts and impact factors, discouraging researchers from undertaking long-term, high-risk and original research that may not yield immediate results. Reforming this assessment framework is essential as China transitions from a "follower" to a "pace-setter" in science and technology.

Assessment cycles for certain disciplines should be extended to five, 10 years or longer, with greater emphasis on peer review rather than quantitative metrics. Efforts are needed to cultivate homegrown academic leaders and involve international scholars in the review process, gradually building an international review platform.

A clear division of labor is necessary in basic research. The outputs of fundamental research, mainly academic papers, are publicly accessible. Enterprises often lack a strong incentive to invest here since they cannot exclusively benefit from their investment. Government leadership and funding are essential in this area.

Conversely, enterprises drive development work by building on basic research breakthroughs to create new products and technologies that deliver exclusive returns. Companies are strongly encouraged to invest in this area, with market forces and competition providing the required vitality.

This division of labor is not absolute. Companies, being directly in touch with market and industrial demands, can sometimes better identify areas needing basic research breakthroughs. Therefore, an in-depth collaboration between the government and companies is needed.

Currently, investment in basic research accounts for roughly 7 percent of China's total R&D spending, compared to 15 to 20 percent in most developed nations. China should gradually raise the share of its R&D expenditure on basic research to 15 to 25 percent.

With limited fiscal resources, the government needs to identify sectors that are vital to the country's economic growth and national security, including semiconductors, key materials, biomedicine, energy security and agricultural breeding, and invest in R&D in these sectors.

Stronger intellectual property protection is essential to ensure profitable returns on new product development and encourage companies to make long-term investments. Meanwhile, the government should share the risks that companies face in basic research by issuing subsidies and offering tax incentives.