In the first half of this year, 1.91 trillion yuan has been accounted for tax reductions, fee cuts, and refunds from supporting policies of technological innovation and manufacturing development. This includes 659.60 billion yuan from incentive policies such as additional deduction for R&D expenses and incentives for technology transfers, which support corporate innovation investment and technology commercialization. And about 252 billion yuan stemmed from those supporting policies that refers to 15% corporate income tax rate for high-tech enterprises and other measures aiming to foster high-tech and emerging industries. Nearly 1 trillion yuan fell from incentive policies such as VAT excess credit offset for advanced manufacturing enterprises which are tackling critical bottleneck and advancing high-end development.

These incentive policies, along with other fiscal and tax ones, have  unleashed China's long-accumulated innovation potential. A positive momentum of innovation-driven development was consolidated and projected in several interconnected trends. Transformation of legacy industries and growth of emerging industries advanced in parallel in the first six months: food manufacturing, apparel, and papermaking sectors  raised their sale revenue by 11.6%, 9.2%, and 8.9% year-on-year respectively, while emerging sectors such as intelligent in-vehicle equipment, drones, and robotics saw the revenue growing even higher at 43%, 36.2%, and 27.3%. At the same time, innovation input and output complemented each other as corporates across the country spending in  R&D equipment and service grew by 10.7% and 10.8% year-on-year, while sales revenue in scientific research and technology services and also intellectual property-intensive industries increased by 17.1% and 12.5% respectively. Furthermore, digital industrialization and industrial digitalization were more integrated: core digital economy industries claimed an 8.7% year-on-year increase in sales revenue, and 14.2% and 11.7% were marked for digital product manufacturing and digital application technology. Stronger momentum in industrial digitalization was singalled with corporate procurement nationwide of digital technologies rose by 8.3%, and manufacturing enterprises' digital technology procurement jumped by 15.5%.