China’s innovation and startups have undergone a stable and higher-quality growth, according to data from a top Chinese think tank.

The “innovation and entrepreneurship climate index”, released by the Academy of Macroeconomic Research on April 25, was 184.5 in 2016, rising 5.8 percent year on year.

Growth decelerated. After a surge since 2013, some indexes came back to a more rational rate.

According to the index’s research group, the deceleration is conducive to reasonable valuations of some startups, which will help cool down some entrepreneurs’ restlessness for “getting rich overnight”, thus promoting a healthy innovation climate.

But the quality of innovation has improved, as market expectation for startups in the high-tech industry has been getting stronger, with investment on information and biotech industry growing over 50 percent year on year. On the other hand, patent examination is getting stricter, which is resulting in better patent quality.

The index also showed problems, with decline in merger and withdrawal of venture capital (VC), while financing of startups became tougher; all need supportive policies and system reform.

Data in the first quarter of 2017 showed positive signs. The number of new startups, turnover at National Equities Exchange and Quotations (NEEQ) and IPO volume at the ChiNext, the country’s Nasdaq-style board, all grew steadily. Investors have a positive outlook for the whole year’s innovation climate.

In fact, positive factors do exist. For example, the military-civilian integration strategy will provide more opportunities for startups. The management reform of academic research funding is under way, which is expected to stimulate research.