Abstract:Basic research is the source of technological innovation, and currently, public research entities are the main force behind basic research. However, demand-driven research in the Pasteur quadrant and Edison quadrant requires firms to play a major role. The experience of the United States has shown that large firms can directly bridge the gap between science and industrial demand, improve industrial competitiveness, and the key lies in improving their scientific capabilities. Encouraging large firms to invest in demand-driven basic research can accelerate the transfer and transformation of scientific and technological achievements, increase the industrialization of basic research, and fill the demand-side gap in China’s innovation system. Therefore, the government should encourage large firms to become new forces in basic research from multiple dimensions, enhance the international market competitiveness of Chinese firms, and truly achieve technological selfreliance and self-strengthening.