China will urge large enterprises to set up research and development (R&D) institutes and welcome enterprises to share the state's R&D tasks in the next 15 years, according to a national guideline.

Chinese enterprises are playing a more important role in the reform and opening-up progress. The country will encourage enterprises to become the main body of R&D through economic and scientific policies, says the National Guideline on Medium- and Long- Term Program for Science and Technology Development (2006-2020) issued by the State Council on Thursday.

According to the guideline, China will push enterprises to spend more on research and development, and establish state-level engineering labs and various industrial engineering centers with joint R&D groups from enterprises, universities and scientific institutes.

Meanwhile, the country will support enterprises to take part in national R&D tasks. The national science development program will also incorporate more scientific and technological demands of enterprises.

Innovation capability should be a key indicator of qualification evaluation of state-owned enterprises, says the guideline, and regulations and policies should be made to encourage innovation of small and medium sized enterprises which are vigorous but fragile to risks.

The guideline also lists a few preferential tax policies and vows to encourage enterprises to set up special funds for research and development.

(Xinhua News Agency February 9, 2006)