The development of today's industry cannot be separated from the supply of energy. Traditional fossil fuels have problems such as non renewability and environmental pollution, so new energy is increasingly favored by countries. Compared with traditional fossil fuels, new energy has unparalleled advantages such as environmental protection, cleanliness, and sustainability.

1. Definition of new energy. Traditional energy sources include natural gas, coal, oil, hydropower, wood, etc. New energy refers to new energy sources that have not yet been widely used and have great potential for future development. At present, there are differences in the definition of new energy among domestic and foreign institutions, but the general direction is the same. In the 1990s, the United Nations Development Programme classified new energy into large and medium-sized hydropower; The definition of new renewable energy is: "New energy is a type of clean and renewable energy that differs from traditional fossil fuels, including clean energy such as solar energy, wind energy, biomass energy, hydro energy, ocean energy, geothermal energy, etc.

Sorting out the definition of new energy in China, it can be found that authoritative organizations at home and abroad have roughly the same definition, with the main difference being whether hydropower is classified as new energy. China classifies hydropower as new energy, while international organizations exclude long used hydropower from the category of new energy.

2. The current development status of China's new energy industry. In 2006, China promulgated the Renewable Energy Law, and since its implementation, the new energy industry in China has continued to develop, with increasingly mature industrialization and remarkable achievements. However, there are also shortcomings in its development. Firstly, high-quality development on the supply side. In 2020, China's installed capacity of new energy exceeded 530 million kilowatts, ranking first in the world in terms of the scale of new energy development and utilization. At the same time, China's newly added photovoltaic power generation accounted for 52.8% of the total newly added installed capacity, ranking first in the world for 11 consecutive years. Among the top ten companies in the world for photovoltaic modules, China accounted for 7.

In 2020, China's solar photovoltaic power generation exceeded the total solar power generation of the United States, Germany, India, and the United Kingdom. China has not only achieved localization in the important link of photovoltaic manufacturing, but also become a global manufacturing base. In the field of wind power generation, China's wind power generation is close to the total wind power generation of the United States and Germany. The low wind speed wind power technology mastered has made China's wind power generation among the world's top, and more than 90% of the installed wind power capacity in China uses domestically produced wind turbines. Secondly, the proportion of renewable energy consumption in China continues to grow rapidly and with high quality. Data shows that in 2020, China's energy consumption increased by 2.1% year-on-year to 145.46 joules, while global renewable energy consumption reached 31.71 joules. Among them, China's renewable energy consumption reached 7.79 joules, contributing to the main growth of global energy consumption. Promote the upgrading of traditional industries with high energy consumption to green and low-carbon fields, and gradually transform the industrialization of new energy into new energy+(industrial new energy).

Once again, increase support for the new energy industry through dual coordination policies of industry and currency. In terms of industrial policies, they are mainly divided into three categories: total target policies, fiscal subsidy policies, and targeted policies for key areas. The total target policy is aimed at the demand side, setting quantity and price targets for end products, such as restrictions on grid electricity prices, price regulations for new energy vehicles after subsidies, etc; The fiscal subsidy policy is a measure taken by the central or local government to increase tax incentives and fiscal subsidies for new energy enterprises; Targeted policies for key areas are based on reality, providing targeted support for key areas.

These three types of policies are not implemented separately, but are coordinated and coordinated at different stages of the development of new energy. In the early stage of new energy, implementing total target policies and fiscal subsidy policies, providing subsidies and support to the supply side, controlling prices for the demand side, promoting consumption, and guiding the rapid development of the new energy industry through tangible hands. In the medium term, subsidy policies will be reduced, and targeted policies will be implemented in key areas. With the expansion of industrial scale, enterprises are gradually establishing a foothold in the market. Therefore, subsidies for profitable enterprises should be reduced, and targeted assistance should be provided to enterprises with high technological content and significant financing constraints. In the later stage, the "invisible hand of the market" will guide the new energy industry to undergo a cycle of survival of the fittest, promoting the industry to enter a healthy and orderly development. In terms of monetary policy, the 2021 work report proposed the issuance of special financial policies to support green and low-carbon development. In November of the same year, the central bank launched a long-awaited carbon emission reduction support tool, giving policy banks, six major banks, and joint-stock banks a total of 21 banks the right to issue carbon emission reduction loans. A series of credit preferential policies have effectively promoted the development of China's low-carbon industry.

Finally, the development of new energy in China also faces many problems, and there is still a considerable gap compared to developed Western countries. One is insufficient technological innovation capability. Although China's technology has reached a world leading level in certain fields, overall innovation capability lags behind that of Western countries. For example, key equipment such as wind turbine units, biomass power generation boilers, and polycrystalline silicon furnaces still rely on imports. Developed Western countries have taken strict prevention and control measures for key technologies in new energy. Even at high prices, it is difficult for China to purchase core technologies from abroad, and even the expensive machinery and equipment purchased have not been fully disseminated, digested, and absorbed.

Secondly, the production costs of Chinese enterprises are relatively high. This is mainly due to the high construction and operation costs, which are mainly reflected in three aspects: high unit cost, high fuel cost, and high operation and maintenance cost. Excessive production costs, on the one hand, reduce the production enthusiasm of enterprises, and on the other hand, bring about high market prices, which seriously suppress the capacity of the consumer market and weaken the public's willingness to consume. The third issue is insufficient funding for research and innovation. Adequate cash flow is a prerequisite for enterprises to innovate. The characteristics of large financing amount, high R&D investment, high risk, and long investment period of new energy enterprises in China make them face severe financing constraints, which in turn restrict their technological innovation. Technological backwardness can cause enterprises to lose market competitiveness. Therefore, it is necessary to accelerate the construction of a diversified financing system to better alleviate the financing constraints of enterprises.

In summary, China's new energy has achieved gratifying results after decades of development, which cannot be separated from the comprehensive policy preferences of China. From the initial stage of rough subsidy policies to targeted support in key areas. The new energy industry has gone through three stages: policy driven stage, policy+market driven stage, and finally market driven stage. Meanwhile, there are still challenges in its development, such as weak technological innovation capabilities, high production costs, and significant financing constraints.

3. Technological innovation. The advancement of technology has greatly improved the productivity of society, and countries have increased their investment in scientific research and innovation. Theoretical research on technological innovation has also become a hot topic for scholars at home and abroad.

3.1. Definition of Technological Innovation. Solow believes that innovation can be divided into two stages, the first stage being the generation of innovation; The second stage is the realization of innovation. Freeman first linked the concept of technological innovation with commercialization, believing that technological innovation is the entire process of utilizing new technologies and processes to achieve commercialization. Technological innovation promotes new products to the market and ultimately achieves commercialization. The Organization for Economic Cooperation and Development (OECD) supplements the subject of innovation by stating that "a country's innovation system is composed of elements such as individuals, enterprises, and institutions, and innovation and technological development are the result of the synergistic effects of enterprises, schools, research institutions, and other entities within the system.

Domestic scholars have also made relevant definitions of technological innovation, and Liu Jielin emphasizes the "first" of various commercial activities of technological innovation, defining technological innovation as a completely new business behavior. Fu Jiaji believed that the purpose of technological innovation is to obtain commercial benefits. Entrepreneurs arrange various productive activities by readjusting the structure of production factors, such as establishing more efficient production processes; Develop new raw material supply chains to obtain low-cost production and operation systems; Promote new products, new processes, and other activities. Li Jingwen defines technological innovation as a complete process guided by market demand, from the conception of new products and processes, to the research and development of technology, to the production of new products, and finally to the market and gaining market recognition.

The earliest definition of technological innovation was proposed by foreign scholar Schumpeter, but his innovation theory is a broad definition of technological innovation and does not delve deeper into the narrow definition. Subsequent scholars have also supplemented technological innovation, further enriching its connotation. By sorting out the definitions of technological innovation by scholars at home and abroad, this article defines technological innovation as: technological innovation is aimed at improving the market competitiveness of enterprises and achieving commercial benefits; It is a complete economic process, including the proposal of technological innovation ideas, research and development, promotion of new products and technologies, gaining market recognition, and bringing economic benefits; A diversified innovation system is formed by the coordination and cooperation of multiple forces such as individuals, enterprises, schools, and research institutions.

3.2. Stages of Technological Innovation. Technological innovation is a complete business activity, and its process can be roughly divided into three stages. The first stage is innovation investment: in this stage, on the one hand, a large amount of market research needs to be conducted to clarify market demand, and on the other hand, scientific research activities such as basic research, applied research, project confirmation, and design and development need to be carried out. The risk of R&D failure is high and there is great uncertainty in this process;

The second stage is innovation output: obtaining technological breakthroughs through experimental research and development, and applying for patents for technical protection. In this stage, not only scientific research and innovation, but also effective organizational management teams are needed to efficiently manage and transform the technology output stage of the enterprise. The third stage is innovation benefits: this stage is the process of innovative product sales, market development, and expanding production scale. This stage aims to attract more consumers and quickly seize market share