New Heading of Science, innovation and development approach in China Second BRICS Venture, April.25-27,2007.

New Direction of Science, innovation and development approach in China Second BRICS Project, April.25-27,2007 Liu Xielin Graduate University of Chinese Academy of Science, Beijing, China liuxielin@hotmail.com

Outline Science arrangement Technology strategy Innovation approach Indigenous advancement Policy

A. Sciences Policy Basic science once was viewed as interest driven exploration. Less government mediation. Government examination organizations (GRI) was the fundamental body for the exploration. Change: University supplanted GRI, organization more peripheral. 973 to reinforce huge science Knowledge development program for Chinese Academy of Science for greatness of focuses Talent individuals approach

interest examination and NSFC The set up of NSFC in 1985 for interest driven exploration From 2001-2005, around ten billion for interest driven exploration. More cash for greatness of focuses and senior researchers. In any case, science is more a national brand instead of financial power, in this way, the monetary allowance for it is constrained.

Institutional change Institutional change: GRI once the primary fundamental establishment. Fundamental exploration should be possible by government arrangement. Bit by bit, government urge college to supplant GRI. GRI:only CAS is left as the national foundation. organization more negligible in essential examination.

University in 2003 National science establishment of China: 67%. National fundamental exploration program(973): 47%. National Labs for essential examination: 92, around 56.79% of aggregate.

Knowledge development designing for greatness of focuses to survive the CAS in the ascending of college. 1999, Knowledge advancement program: mostly for CAS, it helps CAS significantly in office and key researchers research. Around one billion a year. This undertaking makes CAS the biggest essential science focus in China.

Paper production by organizations (offer) 资料来源： 《 中国科技论文统计与分析 2000 å¹\' — 2003 å¹\' 》 ，中国科学技术信息研究所。

973: national essential science project: to reinforce the part of government in science A national mission-situated science program. For huge science and transnational participation. From 2001 to 2005, they bolstered 143 key activities. Human services: 29 IT: 18 Material: 18 Agriculture: 17 Energy 15. Others: 27 Total cash: 4 billion (MOST).

Talent individuals approach Returnee: With uncommon arrangement to draw in abroad Chinese back, more of them return. This rapidly limit the hole in some science fields. From 2001-2005, CAS has pulled in 422 researchers from the world with unique cash for their exploration and labs.

abroad by means of returnee

Transplant of some examination organization from USA A foundation called Beijing Institute of Biology was built up and worked by entire returnees. They got unique and substantial backing from government. They appreciate uncommon administration for their operation like an aggregate organization worked in USA. However, this strategy emerges new issue: neighborhood PHDs feel more weights

execution Budget for fundamental exploration has been a little extent of aggregate R&D in China. since the organization spend minimal expenditure on essential science, thus, the offer of fundamental science in China is very low contrasting with different nations. Constrained territories: Biology, nanotechnology were given the solid weight in those national projects. Science is making up for lost time rapidly.

Share of R&D for fundamental exploration is expanding slowly.

More researchers for fundamental exploration

Government focused on restricted region for make up for lost time. Science and nanotechnology. 1999-2003 development rate of papers in diverse fields

International SCI is expanding

1997 2000 2001 2002 2003 2004 17,370 30,499 35,685 40,800 49,800 57,377 - 3.15 3.57 4.18 4.48 5.43 12 9 8 6 5 1. Development of Science and Technology Sector Total Academic Papers (SCI) 1990 1995 8,131 13,270 Number - Share ( % ) Rank - 15

B. Innovation approach Transformation of connected GRI into innovation based organizations. Market for innovation: In heaps of commercial ventures, we require FDI to update the business, China requested that the multinationals set up R&D focus and do innovation exchanges as approach to get the most recent innovation for them to enter in Chinese market before WTO. Bolster R&D focuses in huge organizations. Uncommon modern approach Target program - 863 and achievement program

Transformation of GRI To lessen the quantity of GRI. in1998, the State Council chose to change 242 GRIs at the national level into innovation based ventures or innovation administration organizations. Some of them turned into the main organizations in their industry. Be that as it may, some of them more regrettable than some time recently. After this approach, a huge number of territorial GRIs were changed into organizations.

Market for innovation Government utilize the business sector to press outside organizations to exchange the innovation to neighborhood organizations. For instance, In IT and car industry. the particular arrangement devices is permitting. Just the nearby organizations can offer their items to clients in China. Joint endeavor turned into the principle path for remote organizations to come to China.

Reason for the strategy Joint endeavor is not a decent element for long haul participation. Multinationals don\'t prefer to exchange the key innovation to help potential contenders. Multinationals can profit just by offering parts. .

pundits A terrible arrangement? Researchers scrutinize the arrangement as multinationals don\'t exchange the innovation. in car industry, the industry ruled by multinationals, for example, GM, Volkswagen and Japanese organizations. Be that as it may, the neighborhood organizations still exceptionally feeble. Market security now and again do terrible for the business, for example, car industry. they can appreciate high benefit with no advancement.

Encourage multinationals set up R&D focus in China Both focal and nearby governments attempt to draw in multinationals to set up R&D focuses in China or their areas with uncommon approach. Be that as it may, the overflow is difficult to see. Need more opportunity to see the positive results.

Number of new foundations of outside R&D labs in China, (1987-2003 )

Subsidy to R&D lab in enormous organizations For vast organizations, government select around 512 for extraordinary backing. Presently they select more than two hundreds organization as driving imaginative organization and give them direct backing.

863: national innovative system From 2001-2005, around 15 billion RMB were spend on common innovation. it is the most vital national project in China. It chiefly concentrates high-innovation. The vast majority of neighborhood high innovation possessed to its backing. It spread the seeds of cutting edge industry in China and is profoundly related with the improvement of innovative zones in China.

C. Advancement strategy Innovation arrangement has been started in 1980s to better utilization of S&T for business reason. Spill-off: China acquainted this strategy right on time with push college and GRI to contribute more to financial development. IPR: given college and innovator the rights to business utilization of their development. Sponsorship to R&D lab in huge organizations Science park and cutting edge zones Special mechanical arrangement

Spin-off approach Table 2 University twist offs Sources: Statistics of University ’ s industry in 2004 in China, Center for S&T for Development, Ministry of Education, 2005.

Results of Spin-off approach Lenovo, Founder and bunches of different organizations are the consequences of twist off strategy. In any case, the strategy bit by bit met more test: Spin-off organizations don\'t have a decent regulation for further advancement. The contention between the benefit looking for and open objective of the college. Put the college and GPI more dangerous position. New strategy: not obvious from but rather isolate the business with college.

IPR: adapting the act of USA Firstly, enlivened by the Bay-Dole model frame the U.S., the first step taken by the Chinese government is to permit IPR coming about because of government-financed R&D tasks to be marketed. Besides the responsibility for coming about because of government-supported R&D ventures could be exchanged to the college or GRI who led the undertakings, rather than being government-possessed impalpable resources. Thirdly, since 1998 individual innovators included in government-supported R&D activities are permitted to get a sovereignty of at most 35% of the permit charge when the examination results are exchanged.

High-tech zones To build up well-working base so that the cutting edge zones serve as a stage for development exercises and cooperations. Zhongguancen is the first and now there are 53 national innovative zones in China. To give special medicines to innovative firms in types of a wide scope of expense motivations. To make another administration model, which is described by “small government, yet enormous service” to decrease exchange costs. To set up bunch structure keeping in mind the end goal to advance dynamic communications and close co-operation among the organizations.

High-tech quality included/GDP is expanding and thanks the commitment of multinationals

Special industry strategy 2000-arrangement for incorporated circuit and programming industry in China for programming industry Value included assessment: for general organization, 17%, for programming industry, 3%. Salary expense: general firms: 35%, for programming firms: 10%. For IC industry Value included duty: for general organization, 17%, for programming industry, 6%. For organization with speculation of 8 billion and innovation in 0.25 , they can appreciate the other