China has said 2015 was a year when mass innovation and entrepreneurship took off in the country with full force.
At a State Council press conference, officials said the government will provide incubating platforms for the country's innovators to start their businesses with lower costs and higher efficiency.
In 2015, China witnessed the outset of a wave of innovation and entrepreneurship, especially in the high-tech and Internet industries.
Part of the reason has been the government's active pursuit of a strategy called "mass innovation", where qualified start-ups are given subsidies and tax incentives.
"2015 was a big year. About 12,000 new companies were created every day, that's about 8 firms per minute," said Shen Zhulin, Commissioner, National Dev. & Reform Commission.
"4,000 start-up service spaces were created, and patent applications in the start-up sector were up 20 percent annually, significantly higher than other industries."
Earlier this week officials said the country is aiming to keep its economy growing at 6.5 to 7 percent in 2015. Unemployment rate is to be kept under 4.5 percent. To maintain this kind of growth and to create jobs, the government needs a new growth engine.
According to data, the engine is running well.
"The innovation drive has attracted about 2.8 percent more college graduates this year to pursue entrepreneurship. We've also seen 2.4 million rural migrant workers return to their villages and start their businesses. This created a lot of jobs," Shen said.
For this trend to continue, it not only needs talent but also money. Officials say investors are loving start-ups. In 2015, venture capital firms invested some 220 billion yuan across more than 5,000 projects.
Total volume of early stage investments saw triple-digit growth last year. Part of this enthusiasm, according to officials, is due to a more mature capital market that allows investors get a return of their investments, or in financial jargon, an investment exit.
"Last year, new companies raised about 120 billion yuan in the new third board. That's a 800 percent jump. In the A-shares, there were also 263 high-tech IPOs and 286 mergers. These financing acts allowed early investors to get their money back," Shen said.
Officials say the government will continue to address the current obstables in promoting innovation. For example, many local authorities, as well as businesses, are not familiar with the policies. Officials say they will make sure qualified start-ups don't missing out on the subsidies and incentives.
