In pursuit of technological innovation

<jats:sec><jats:title content-type="abstract-heading">Purpose</jats:title><jats:p>This paper intends to examine the change of R&amp;D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-heading">Design/methodology/approach</jats:title><jats:p>This paper adopts an archive approach and undertakes an overview of the policy changes and their implications.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-heading">Findings</jats:title><jats:p>It is found that policy changes have gradually made enterprises the focal point of the national innovation system and that correspondingly a new financial and fiscal mechanism has been created to create incentives for innovation in firms.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-heading">Originality/value</jats:title><jats:p>This paper provides a comprehensive overview of the changing financial and fiscal policies in support of technological innovation in China.</jats:p></jats:sec>