ИСТИНА

The article expounds the importance of innovation to economic and social development, and reveals the role of the government in innovation from the aspects of government measures to support innovation and the balance of market-government relations. Innovation is "the introduction to the market or the introduction of some new or significantly improved product, product or service, or process, a new marketing method or a new organizational method in business practice, workplace organization or external relations"[1].In modern society, innovation has become an important force in promoting economic and social development.Innovation can promote technological progress and business development, while also bringing higher production efficiency and more employment opportunities.Innovation can also improve people's lives, increase productivity, and enhance national competitiveness and strength.Therefore, innovation is widely regarded as one of the important means to achieve sustainable economic and social development. Free market and free competition are one of the important conditions for promoting innovation.The free market can encourage companies to innovate, because in the free market, companies can choose the resources to invest in research and development and innovation according to their own business interests, and can price and sell products according to market demand.At the same time, competition is also the economic environment of a particular market where other economic factors interact[2].Free competition can motivate companies to continuously improve product quality and reduce costs in order to gain more market share and profits. Entrepreneurs are important agents of innovation.Entrepreneurs can improve the quality, price and functionality of existing products or services through innovation, open up new markets, and create new business models and value chains.Entrepreneurs can also respond to market changes and risks through innovation, and improve the competitiveness and production efficiency of enterprises[3].Therefore, the government should support and motivate entrepreneurs to innovate, while providing them with the necessary protection and support so that they can fully realize their innovation potential in the market. In order to encourage companies to invest in research and development and innovation, the government can provide support in a variety of ways.For example, the government can formulate incentive policies such as taxation, fiscal and financial, provide support for enterprises such as R&D funds and technical training, and formulate legal measures such as intellectual property protection and regulation.In addition, the government can also cooperate with enterprises, scientific research institutions and social organizations to jointly promote research and development and commercial innovation. The influence of the government on innovation activities: 1.Restrict market competition. Administrative restrictions and regulatory measures implemented by the government may lead to a decrease in market competition.Excessive restrictions may hinder the development of enterprises, restrict innovative activities and free competition. 2.Affect corporate profit margins. Government tax policies, price regulation, environmental protection requirements and other restrictions may have a significant impact on the cost and profit margins of enterprises, and pose challenges to the normal development of enterprise innovation activities[4]. 3.Affect the development of science and technology. The government's support for science and technology undertakings has played an important role in the promotion of new technologies, new industries and new models.The government will also help scientific research institutions and scientists carry out cutting-edge scientific and technological research through policies and financial support. In order to balance the synergy between the government and the market, entrepreneurs, enterprises, scientific research institutions and scientists： 1.Establish an interaction mechanism. The government can establish and improve docking mechanisms with markets, enterprises, entrepreneurs, scientific research institutions and scientists, strengthen information exchange and communication, and keep abreast of the needs and contributions of all parties. 2.Strengthen regulatory responsibilities. The government should increase its supervision of the market and enterprises to ensure that the market is orderly and standardized, and enterprises comply with laws and regulations to prevent private interests from harming public interests. 3.Optimize the policy environment. The government should formulate reasonable industrial policies and support measures based on the actual needs of the market and enterprises, create a market environment conducive to innovation and competition, and encourage entrepreneurs and scientists to carry out innovative activities. 4.Increase capital investment. The government should strengthen capital investment in science and technology undertakings and industrial development, establish and improve support mechanisms such as innovation funds and subsidies for scientific and technological innovation, stimulate the development of the stock market, attract high-quality experts in the field of venture capital[5]. 5.Promote the reform of laws and regulations. The government should strengthen the reform of laws and regulations in the fields of intellectual property protection, market competition, and administrative management, so as to make policies and administrative management more transparent and fair, and avoid abuse of administrative power.