The Construction of the National Innovation System is an important strategic decision made by the Chinese Government to speed up economic and social development in China by fully implementing the policies of rejuvenating China through science and education, and of sustainable development.

As shown by the progress of world economic and social development in recent years, mankind has witnessed a new revolution in science and technology. Modern science and technology, represented by information science and biotechnology, are developing at a high speed: they have led to the opening of new prospects for the development of productive forces and to a changing of production modes, lifestyles and social structures. The knowledge-based industry has become a new feature in economic growth, while economic globalization and the knowledge-based economy are moving forward rapidly. Science and technology become the primary productive force and powerful driving force for sustained economic and social development. The key factors of a country's competitiveness are now identified as capability for knowledge innovation, technology innovation, system innovation and the industrialization of high technology.

With the increasing development of world economy, science and technology, the Chinese Government duly worked out important strategic decisions on constructing the National Innovation System. In 1998, it approved CAS (Chinese Academy of Science) to initiate the Pilot Project of Knowledge Innovation Program (KIP). Soon after, an action plan was carried out for rejuvenating education in the 21st century, in addition to a national meeting on technology innovation and a working conference on basic science research, in order to further enhance the reform of the scientific research system. Plans are also drawn to open a second-board (Nasdaq-like) stock exchange in the securities market. Science and technology in China are moving forward at an unprecedented tempo in the new era.

China's National Innovation System is a networking system composed of institutions involved in knowledge innovation and technology innovation. It includes the following: knowledge innovation system netted with the state research institutions and key universities; technology innovation and technology application system with industrial enterprises; knowledge dissemination system with schools and universities conferring different levels of degrees and with a lifelong education program open to the public. In this connection, the national institutes play a unique role in the popularization of science among the people for S&T development and expansion, and in the promotion of scientific methodology.

The KIP piloted at CAS is a major component of the National Innovation System. The historic missions that CAS is endowed with in the National Innovation System are as follows: Try hard to scale the heights of world science; train and nurture and at the same time continuously dispatch creative S&T talents to the wider society; constantly create and disseminate high and new technology, and develop high-tech industries with international competitiveness in a bid to make creative contributions that are basic, strategic and foresighted to national economic development and social progress; try to interrelate with other components of the National Innovation System, including universities and enterprises, and seek for mutual development, providing powerful S&T support for economic and social development in China.