The driving force for innovation

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Innovation is the creation and application of achievements, technical solutions, technology, and management solutions to improve the efficiency of socio-economic development, improve productivity, quality, and added value of products and goods. Reality has also proven that innovation has become one of the main driving forces for economic growth in each country, especially in international integration and the strong development of the Industrial Revolution 4.0.

Commenting on the importance of innovation, General Secretary To Lam emphasized: “Breakthroughs and innovations are the magical factors to create miracles, because breakthroughs and innovations create revolutionary breakthroughs, overcome current barriers and limits to achieve outstanding and outstanding results.”

Also because of the importance of this activity, in recent times, the promotion of science, technology and innovation has received attention from our Party and State. However, our innovation activities have not yet developed as expected. One of the reasons is that we do not have a strong enough mechanism and policy for this activity. Therefore, the requirement is that we need to amend, supplement and issue new regulations to attract more and more businesses to participate in this field. Along with that, we must create a legal corridor that is tight enough to encourage and protect participants in science, technology and innovation activities so that they are confident enough to "dare to think, dare to do, dare to take responsibility" because this is inherently a field that has many potential risks.

To create momentum for innovation activities, the draft Law has provisions on preferential policies to support innovation activities. According to the draft Law: expenses of enterprises and organizations for innovation activities are included in deductible expenses when determining taxable income of enterprises at 150% of the actual costs of this activity when calculating corporate income tax. National innovation centers enjoy a preferential income tax rate of 10% for 15 years, are exempted from income tax for 4 years and have 50% income tax reduction for the next 9 years; and are entitled to a 50% reduction in land rent for 15 years from the date of being granted the Certificate of National Innovation Center.

Along with that, the provincial innovation center enjoys a preferential income tax rate of 15% for 15 years, a 4-year income tax exemption and a 59% income tax reduction for the next 9 years; a 59% reduction in land rent for 15 years from the date of being granted the Certificate of Provincial Innovation Center... These are very practical preferential policies, demonstrating the great concern of the State for enterprises. At the same time, this is also a motivation for enterprises to feel more secure when participating in science, technology and innovation activities.

Establishing mechanisms and policies with incentives and support for innovation activities is essential. However, it will not be enough if businesses accessing policies still have to overcome a "jungle of procedures".

Therefore, along with creating a legal framework with mechanisms and preferential and supportive policies, it is necessary to simplify administrative procedures so that businesses do not have "difficulty" in accessing them. Only then will preferential and supportive policies be truly attractive enough and create momentum for innovation activities to develop rapidly.

Thanh An