Government-sponsored institutional innovation against the background of market economy

The government is the chiefest subject of institutional innovation and plays a most important part in the innovation,especially in the present stage of China's restructure.However,the government has its own drawbacks.In the course of transition to market economy,the government should provide the subject of market operation with an institutional innovation--an institutional framework within which there are both strict norms and much room for free activities,upon which to construct a setup in which the governmental institutional innovation plays the leading role and the market institutional innovation is full of vigor.