General Secretary Xi Jinping pointed out that "building a pilot free trade zone is an important strategic measure for the Party Central Committee to promote reform and opening up in the new era. The pilot free trade zone plays a pioneering role, not only as an important testing ground for China's comprehensive deepening of reform, but also as a key platform for enhancing international competitiveness. Since the 18th National Congress of the Communist Party of China, China has actively promoted reform and opening up, established 22 free trade pilot zones and Hainan Free Trade Port nationwide, and carried out more than 3500 reform pilot projects, forming exemplary institutional innovation achievements in practice. As the reform and opening up enters a critical period, the interconnectedness and interactivity of opening up in various fields have significantly increased, greatly reducing the effectiveness of "fragmented" reforms. Therefore, the Third Plenum of the 20th Central Committee of the Communist Party of China proposed to implement the strategy of upgrading free trade pilot zones and encourage pioneering and integrated exploration; The Overall Plan for the Construction of Hainan Free Trade Port also emphasizes the need to "strengthen the integration of reform systems, pay attention to coordinated promotion, and enable innovative measures from all aspects to complement each other and improve the overall efficiency of reform and innovation". It can be seen that promoting integrated innovation is an important focus of building free trade pilot zones in the new era. Compared to single innovation and decentralized innovation, integrated innovation is not a repair to individual departments or systems, but rather manifests in forms such as integrated innovation, integrated innovation, and systematic innovation. Integrated innovation requires the pilot free trade zone to work together with various departments, fields, and industries to promote factor flow and industry access, supplemented by corresponding tax, social governance, and legal systems, and launch a series of systematic reform measures. In terms of specific measures, promoting integrated innovation can start from two aspects: institutional integrated innovation and industrial integrated innovation. The first step in promoting institutional integration innovation is to advance institutional integration innovation. Promoting the construction of pilot free trade zones is not only driven by traditional microeconomic factors such as increasing trade opportunities and foreign exchange earnings, but also an important attempt to achieve economic function upgrading, development mode transformation, and government function transformation. In this sense, the pilot free trade zone shoulders a significant mission and task of institutional reform, and needs to promote institutional integration and innovation in order to fully unleash the reform effectiveness of the pilot free trade zone. Promoting institutional integration and innovation means integrating and reconstructing policies, systems, and mechanisms from multiple aspects, fields, and levels, effectively integrating different systems, and achieving systematic and integrated reform and innovation across departments, fields, and industries. One is to promote integrated innovation between trade and investment facilitation systems, factor flow and industry access systems, and tax rule of law systems. These three types of systems are the fundamental systems for the construction of free trade pilot zones, and they are interrelated and influence each other. Among them, achieving trade and investment liberalization and facilitation is the key goal of the reform, which requires key support from various production factors for cross-border free, orderly, safe, and convenient flow, as well as modern industrial systems. Special tax system arrangements, efficient social governance systems, and complete rule of law systems constitute important guarantees for achieving these goals. The progress of the construction of pilot free trade zones depends to some extent on the degree of collaborative innovation and implementation of these three systems. Therefore, on the one hand, it is necessary to further clarify the logical relationship between the three types of systems. In the process of constructing the free trade pilot zone, greater efforts should be made to integrate and innovate the three types of systems, avoid the problem of innovation achievements offsetting each other, and ensure the organic connection and mutual support between various innovations; On the other hand, we should pay attention to the linkage of investment and trade factor guarantee systems, focus on the linkage of long - and short-term systems, further consolidate the achievements of the system, and promote the maturity and standardization of the free trade pilot zone system. The second is to promote institutional integration and innovation by aligning with high standard economic and trade rules. To promote integrated innovation in pilot free trade zones, it is necessary to conform to China's national conditions and also learn from the operating and management methods of international free trade zones. Therefore, a key lever for the construction of free trade pilot zones is to align with international rules, with a focus on achieving institutional openness in terms of rules, regulations, management, standards, and other aspects. In other words, the construction of free trade pilot zones should actively align with international high-level economic and trade rules, actively adapt to the new trend of international economic and trade rule reconstruction, systematically integrate the existing systems and international agreements of free trade pilot zones, and explore the formation of open policies and systems with international competitiveness. Specifically, it is necessary to comprehensively and with higher quality connect with international high-level economic and trade rules. This involves not only establishing a higher-level customs clearance system for goods trade, but also further optimizing the existing negative list model for cross-border service trade in terms of service trade, improving the standardization and transparency of negative list management, and enhancing the transparency of personnel mobility policies. Promoting industrial integration innovation is followed by promoting industrial integration innovation. Industrial integration innovation refers to the use of various information technologies, management techniques, and tools by innovative actors to optimize and integrate innovation elements and content between horizontal and vertical departments of related industries, forming an organic whole with complementary advantages, and achieving collaborative innovation and development among related industries. As an important hub for promoting domestic and international dual circulation, the pilot free trade zone can effectively gather and efficiently allocate high-end innovation elements from both domestic and international sources, providing excellent soil for promoting industrial integration innovation. By promoting industrial integration innovation, it can effectively solve the problems of limited innovation resources, locked technological paths, and slow innovation speed caused by decentralized development, which is conducive to improving the speed and quality of innovation achievements, forming stronger competitiveness in related industries, and ultimately providing important support for the transformation and upgrading of local industrial structure and high-quality economic development. Firstly, we need to base ourselves on our own characteristic advantage industry foundation and promote the aggregation of relevant innovative factors. Pilot free trade zones should rely on their own resource endowments and industry advantages to concentrate resources on developing key advantageous industries, in order to form a strong attraction to global innovation factors, and fully leverage the role of pilot free trade zones as outward adsorption windows for China's innovation chain. On this basis, the pilot free trade zone also needs to create a favorable operating environment by improving infrastructure and perfecting service systems, create a fair market order by strengthening the construction of legal and regulatory systems, and provide clear policy guidance by providing necessary financial and tax policy support. In addition, as an open service platform for the joint construction of the "the Belt and Road", the pilot free trade zone can also facilitate the flow of capital, technology, talent, information and other innovative elements between Chinese enterprises and the countries jointly constructing the "the Belt and Road" through trade facilitation, investment facilitation, financial opening and other measures, and better integrate international scientific and technological innovation element resources to promote international collaborative innovation development and industrial integrated innovation among related industries. The second is to continuously extend and expand the industrial chain, and create a competitive advantage in the industrial chain. General Secretary Xi Jinping emphasized the need to deploy innovation chains around the industrial chain and layout the industrial chain around the innovation chain. To achieve industrial integration innovation, it is necessary to closely integrate the industrial chain and the innovation chain, thereby promoting synergy and mutual improvement between the two. By reasonably extending and expanding the industrial chain, promoting the flow of technological information within a smaller geographical area is an important way to promote the deep integration of the industrial chain innovation chain. In specific practice, it is possible to extend and expand the industrial chain within the pilot free trade zone, plan and promote the agglomeration of characteristic advantageous industries within the pilot free trade zone based on existing characteristic advantageous industries, form internal industrial clusters, and leverage the advantages of a complete industrial chain; We can also comply with the development requirements of characteristic advantageous industries in the pilot free trade zone and continuously expand the upstream and downstream of the industrial chain outside the pilot free trade zone. The former approach is a common practice to promote industrial agglomeration and extend the industrial chain, but the development of pilot free trade zones is inevitably limited by spatial constraints, making it difficult to fully support many links in the industrial chain. The latter path can enable the pilot free trade zone to gain support from the vast economic hinterland, better exert its radiating and driving role, and make greater contributions in leading regional economic development. Therefore, it should become the main idea for building a competitive advantage in the industrial chain in the future. (Liao Xinshe) Author: Sun Puyang (Professor, School of Economics, Renmin University of China)