Summary:
China’s Ministry of Education and Ministry of Science and Technology recently released a circular on strengthening HEIs’ technology transfer. One key reform in this circular is related to the revenue generated from these technology transfers. The “major contributing researchers and faculty members” should be awarded at least 50 per cent of the total revenue, while all the remainder should go to the university or HEI. Research output was previously treated as state property, meaning that the distribution of revenues needed to be approved by the relevant government departments.

In addition to this reform, the circular also makes it clear that performance in transforming scientific outcomes to products will be considered in the overall evaluation of research institutions and HEIs for the purposes of the World-Class Universities and Disciplines project, which will allocate funding to top universities based on their performance.

This circular is part of a series of policies to encourage scientists to translate their research into commercial products. The State Council in March issued a regulation that provides detailed measures for academics and inventors on how to commercially exploit their work, as the country pushes for innovation-driven development.

Earlier this month, the State Council launched the 13th Five Year Science and Innovation Plan, which plans to increase spending on Innovation and Research to 2.5 per cent of gross domestic product by 2020, up from 2.1 per cent in 2015. In comparison the UK spent just 1.7 per cent of GDP on R&D in 2014 according to data from the Organisation for Economic Cooperation and Development, while the US and Germany spent 2.7 per cent and 2.9 per cent respectively.

The Plan also highlights regional (domestic) mapping of innovation and research development strategies, as well as international exchanges on scientific research, joint R&D and technology transfer centres between companies, research institutes and universities, and attracting outstanding scientists to work in China. It sets a target for doubling patent applications between 2015 and 2020 and for “knowledge-intensive services” to make up a fifth of the economy by 2020 compared to 15.6 per cent in 2015.

Analysis by Kevin Prest and Liu Xiaoxiao:
This is the latest in a series of reforms aimed spurring innovation in order to improve China’s economy. It creates clear incentives for researchers to transfer scientific outcomes into commercial products, which is likely to encourage more links between research and industry.

In combination with other government policies, it is likely to encourage Chinese universities to focus more on applied research and technological innovation. International cooperation in this field is encouraged, and there are likely to be more opportunities for UK universities to build partnerships with their Chinese counterparts in applied research fields.

Sources:
1. Circular on strengthening the transfer of scientific and technological outcomes of HEIs (Chinese): http://www.jyb.cn/high/gdjyxw/201608/t20160820_669598.html
2. The 13th Five Year Science and Innovation Plan (Chinese): http://www.gov.cn/zhengce/content/2016-08/08/content_5098072.htm
3. Regulation of technology transformation (Chinese): http://www.gov.cn/zhengce/content/2016-03/02/content_5048192.htm
4. http://www.chinadaily.com.cn/china/2016-08/19/content_26539776.htm
5. https://www.timeshighereducation.com/news/china-pins-hopes-growth-scienc...