The following Chinese government policy document encourages the creation of “new-style R&D institutions,” which differ from traditional Chinese laboratories and research institutes in that they are not state-run and have additional sources of income besides government funding. Historically, Chinese state-run R&D labs have had difficulty converting research breakthroughs into commercially viable applications. Researchers at these new R&D institutes are allowed to profit from their inventions, giving them a stronger incentive to market their innovations.
An archived version of the Chinese source text is available online at: https://perma.cc/BZE6-VA4E
Guiding Opinions on Promoting the Development of New-Style Research and Development Institutions1
The following opinions are put forward in order to deeply implement the innovation-driven development strategy, promote the healthy and orderly development of new-style research and development (R&D) institutions (新型研发机构), and enhance the overall efficiency of the national innovation system.
1. New-style R&D institutions are independent legal institutions (独立法人机构) that focus on the needs of scientific and technological (S&T) innovation and mainly engage in scientific research, technological innovation, and R&D services. They have diversified investment entities, modernized management systems, marketized operating mechanisms, and flexible employment mechanisms. They can be registered as private S&T non-enterprise units2 (social service institutions), public institutions,3
2. To promote the development of new-style R&D institutions, we must highlight institutional and mechanism innovation, strengthen policy guidance and assurance, focus on both incentives and constraints, and mobilize participation from all sectors of society. Through the development of new-style R&D institutions, we will further optimize the layout of scientific research forces, strengthen industrial technology supply, promote the transfer and conversion of S&T achievements into practical applications (科技成果转移转化), and promote the deep integration of S&T innovation and economic and social development.
3. The development of new-style R&D institutions adheres to the principle of “The organizer has responsibility for the institution, and the entity that establishes the institution can dissolve it” (“谁举办、谁负责,谁设立、谁撤销”). The managing work unit (the operational oversight unit, or funder) shall provide guarantees for the management, operation, R&D, and innovation of new-style R&D institutions, guide new-style R&D institutions to focus on scientific research, technological innovation, and R&D services, avoid an overly generalized functional orientation, and prevent expansion into other fields.
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Guiding Opinions on Promoting the Development of New-Style Research and Development Institutions- Translator’s note: The Chinese official notice of this document, “Notice of the Ministry of Science and Technology on the Publication of the Guiding Opinions on Promoting the Development of New-Style Research and Development Institutions” (科技部印发《关于促进新型研发机构发展的指导意见》的通知), has the document number Guo Ke Fa Zheng (2019) No. 313 (国科发政〔2019〕313号).
- Translator’s note: A “privately run non-enterprise work unit” (民办非企业) is a nonprofit run by a private individual or social organization that is not government-funded. Privately run non-enterprise work units typically provide similar types of service to society that nonprofits provide in the United States. However, if the work unit is suitably large, it will almost certainly include Communist Party members who are answerable to higher-ups in the Party.
- Translator’s note: “Public institutions” (事业单位) are organizations created and led by Chinese government departments that perform a variety of functions. Notably, universities, research institutes, and hospitals in China tend to be public institutions. Unlike state-owned enterprises (SOEs), public institutions do not create material products and are non-profit. Public institutions are not considered government agencies, and their employees are not civil servants. Most public institutions are fully or partially government-funded, but some fully privately funded (but still government-led) public institutions exist.