Guangzhou Nansha Free Trade Zone Set Up An Innovative Fault-Tolerant Mechanism: Encourage Enterprises And Individuals To Participate In Institutional Innovation.

Ordinary people can also participate in institutional innovation, and contribute and reward. Failure can not be held accountable.

In April 16th, the Nansha New District of Guangdong Free Trade Zone introduced a pilot scheme to promote institutional innovation, which is the first normative document of the first free trade area system innovation in China.

This "Guangzhou Nansha Development Zone (free trade zone Nansha area) system innovation promotion pilot scheme" (hereinafter referred to as the "measures") proposed to encourage more social subjects including individuals to participate in system innovation, and clear corresponding incentives and protection, and to establish concrete and conditional innovation fault-tolerant mechanism. In addition, it focused on the basic procedures of institutional innovation, and emphasized that in order to avoid duplication of innovation and promote collaborative innovation.

The Guangdong free trade zone has been listed at 4th anniversary, and Nansha has accumulated as many as 439 reform and innovation achievements, of which 36 have been replicated nationwide. Under the background of the construction of the Guangdong Bay area, the institutional innovation is closely related to Nansha's establishment of a comprehensive demonstration zone for Guangdong, Hong Kong and Macao. Next, how to solve the problems and obstacles in the process of institutional innovation?

Allowing system innovation to trial and error

Institutional innovation is the core task of the free trade area. Who will innovate?

In the past, institutional innovation focused more on the government level, but in addition to clearly defining the responsibilities of Party and government organs in institutional innovation, the measures also encouraged enterprises and social organizations to actively explore and practice institutional innovation in combination with the needs of enterprises or industries themselves, boldly reform the business models and management methods that are not suited to the new situation, and promote institutional innovation according to the procedures. All three are the main body of institutional innovation. The measures also emphasize that any individual has the right to put forward suggestions and suggestions for institutional innovation to the three party.

Liu Jiajun, deputy director of innovation work bureau of Nansha Development Zone (Nansha area of the free trade area), said that the purpose of the "measures" was to encourage innovation, thereby expanding the extension of the main body of institutional innovation and encouraging more social subjects to participate in institutional innovation.

Niu Zhiyong, a researcher at the Shanghai University of Finance and Economics's Free Trade Area Research Institute, analyzed that many institutional innovations in the early stage of the FTA tend to go from top to bottom, but the reform will ultimately solve the problems of enterprises and individuals. In the future, with system innovation going deeper and systematized, we must have more precise docking with grassroots needs.

To some extent, the worry about the risk of innovation failure has a restrictive effect. What are the Countermeasures of Nansha?

First of all, a series of incentive and safeguard measures have been defined, including rewarding units and individuals who make outstanding contributions to institutional innovation, exploring the establishment of incentive mechanism for intellectual property protection of innovative achievements, and linking the evaluation of innovation achievements with the annual performance appraisal of Party and government organs.

More importantly, it is necessary to establish a "fault tolerance mechanism" for institutional innovation, fail to achieve the expected goal of institutional innovation, but conforms to the state's direction of reform, and the decision-making procedures comply with the provisions of laws and regulations. It also emphasizes that fault tolerance should be specific and conditional, so as to really reduce the improper pressure of innovation subject.

Yang Bin, a partner of KPMG enterprise consulting (China) Limited, believes that this will provide strong protection for enterprises and individuals participating in the system innovation. A reasonable definition of innovation failure and violation of laws and regulations is not only conducive to spawning more exploration of institutional innovation, but also conducive to further optimization of existing innovation achievements.

"We don't want to make mistakes or make mistakes, but institutional innovation should allow trial and error." Niu Zhiyong believes that in the future, institutional innovation will continue to push forward, and the difficulty will inevitably increase. We need to build and provide an environment for supporting exploration in a timely manner.

Optimizing the business environment is the core.

In the future, with the improvement of system innovation difficulty and complexity, how to effectively co-ordinate will be a problem. In this regard, the "method" clarifies the division of responsibilities and basic procedures of institutional innovation, and seeks to achieve standardized management.

According to the train of thought of Nansha, a system innovation in the future will basically require basic procedures such as innovation registration, organization and implementation, assessment and evaluation, summary and promotion.

The innovation subjects can actively submit the innovation matters to the overall department registration. The latter proposes the system innovation system integration proposal, and guides the promotion of innovative resources precise delivery, coordinating the difficulties and problems, and promoting innovation. In the process of institutional innovation, the main body of innovation also needs to investigate and demonstrate the feasibility, expected effect and risk of innovation, and timely revision to prevent deviations. Subsequently, the institutional innovation needs to be deepened in the process of the third party assessment, and finally, a policy of reproducing and promoting the policy system can be formed.

Liu Jiajun said that the above basic process is the focus of institutional innovation, and the reason why it is standardized, especially the innovative registration process, is to avoid fragmentation and innovation, and to promote collaborative innovation.

Yang Bin believes that strengthening the standardized management is conducive to the integration of the strength and resources of the various innovation subjects and promoting the comprehensive deepening reform.

Niu Zhiyong said that the evaluation system innovation has always been a difficult problem, and Nansha's exploration will make up for this gap.

The measures also point out that innovations need to break through the existing laws, regulations and regulations. Before the revision or abolishment of laws, regulations and rules, relevant functional departments should actively promote relevant laws and regulations to be suspended in Nansha, or in Nansha, under the authorization of relevant departments, through standardized documents or local legislation.

With the support of the "measures", accelerating the optimization of business environment has become the core of Nansha's institutional innovation. In the context of the construction of Guangdong, Hongkong and Macau, it is the most important task to explore the rules linking Hong Kong and Macao.

This can be seen from the latest "ten institutional innovation achievements" released by Nansha in 2019, such as landing the world's first "Hongkong + bonded port area" aircraft cross boundary renting project, the first to establish a procuratorial system for docking the social services of Hong Kong and Macau, and to create a leading national "Zero run + instant run" government service mode, the first to create a new mode of "land to commencement" project approval, and so on.

"Nansha should be built into a city of innovation and opportunity in the Great Bay area, and we will accelerate the construction of a comprehensive demonstration zone for Guangdong, Hong Kong and Macao." Liu Jiajun said.