Top political advisers have urged the government to increase funding for research by State-owned businesses.

"State-owned companies still lack strong government support for scientific research and development," says a report unveiled by members of the Chinese People's Political Consultative Conference (CPPCC) National Committee at a four-day conference, which began yesterday.

The CPPCC is the top advisory body for both the government and the Communist Party of China.

Its National Committee sent two groups to northeast China's Heilongjiang Province last month to examine the research being carried out by companies in the province.

Only 10 percent of the government's scientific funding was used for companies' research, according to their report.

The report adds that in Western developed countries more than 30 percent of governments' scientific funding supports research.

CPPCC National Committee members advised the government to adjust the structure of scientific investment, giving more support to research.

Not only universities and other academic institutions, but also businesses should participate in scientific plans drawn up by central and local governments, top political advisers said.

"The national scientific plan should meet the requirements of large State-owned enterprises in scientific renovation," said the report.

Only through scientific and technological innovation, can State-owned enterprises become more competitive, according to the report.

At the conference of the Standing Committee of the CPPCC National Committee, which began yesterday, Science and Technology Minister Xu Guanhua talked about deepening reforms to the science and technology system and building an innovation-friendly environment.

"Construction of a technology innovation system, with enterprise as a key part, will accelerate," said Xu.

Standing Committee members will discuss topics including enhancing innovation capability and building a new socialist countryside today.

Vice-Premier Hui Liangyu yesterday reported to committee members on the drive to build a new socialist countryside.

(China Daily July 5, 2006)