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An Introduction to China’s Science and Technology Policy SHANG Yong, Ph.D. Vice Minister Ministry of Science and Technology, China and Senior Fellow Belfer Center for Science and International Affairs Kennedy School of Government, Harvard University A lecture at the Kennedy School of Government Cambridge, Massachusetts December 15th, 2005 1. Background Background: a brief history Modern science and technology in China experienced a booming period that started from the 1950s. The Culture Revolution (1966—1976) caused severe disruption and damages to China’s science and technology. It was revitalized in the aftermath of the Culture Revolution. Benefited from a series of reforms in S&T policy, China’s science and technology have achieved enormous progress since 1978. China, however, is still a developing country. Background: governance of S&T The State Council Ministry of Science and Technology S&T departments within other ministries …… Background: the human resources Science & technology workers (in 1000 full-time-equivalents or FTEs) • • • • • • • 1998 1999 2000 2001 2002 2003 2004 755.2 821.7 922.1 956.5 1,035.1 1,094.8 1,200.0 Background: R&D expenditure 1998 1999 2000 2001 2002 2003 2004 55.1 GERD (billion Yuan) 67.9 85.6 104.3 128.8 154.0 183.0 As percentage of GDP (%) 0.83 1.0 1.09 1.27 1.31 1.35 0.7 Background: distribution of R&D resources Enterprises China Academy of Science Universities Research Institutes of Ministries Provincial Institutes Background: achievements Number of patent applications: • about 400 thousand per year S&T papers catalogued by SCI, ISTP, & EI: • over 100,000 per year Exports of high-tech products: • about 200 billion U.S. dollars per year • about 30% of China’s total exports 2. Policy framework Roles of S&T in China’s Development Science-and-technology is recognized as a primary productive force. China has adopted a National Strategy of modernization: sustaining the development with science, technology, and education, or in Chinese, ke-jiao xing-guo. Innovation Strategy Basic considerations for S&T policy design (3-dimensions, 4-policy instruments) Legislation and regulation Incentive policies Promote economic and social development Enhance R&D capability S&T system reform Programs and investment International cooperation Major Aims of S&T Policy A. Accelerate technology commercialization and integrate S&T with economy B. Promote people’s living and health standard C. Support sustainable development D. Safeguard national security E. Enhance innovative capability F. Encourage scientists’ innovative passion G. Expand international S&T cooperation H. Legislation & regulation on S&T as well as IPR A. Accelerate technology commercialization and integrate S&T with economy (Top Priority) Make market mechanism play dominant role in S&T activities Develop technology markets, technology transfer centers and IPR dealing organizations Stimulate enterprises strengthening innovative capability ( e.g. establish R&D centers, increase R&D investment) Facilitate the creation of start-ups and the development small and medium enterprises oriented on S&T. • There are over 200 thousands of S&T-oriented private SMEs. Transform research institutes that focus on applied research into business-oriented S&T organizations (380 Ministry-affiliated institutes, 800+ local institutes) Facilitate universities and national labs to commercialize their technology inventions through appropriate ways including spinning-off, and to foster their entrepreneurship Encourage the establishment of a variety of close cooperation between firms and universities/institutes Establish and develop High-tech Industrial Zones( science parks) and incubators: • “Torch Program” promotes the commercialization of high-techs. • 53 National Science Parks host about 40 thousands of high-tech firms. • 100 Provincial Science Parks • 400 High-tech Incubators National Key R&DD Programs support the innovation of key platform technologies for industrial-use, and key technologies for large-scale infrastructure projects. Government Innovation Fund, favorable Loans, Venture Capital, Venture Stock Board Incentive policies: Tax incentive, IPR incentive B. Promote people’s living standard and health Improve the nutrition levels of 1.3 billion people: • Progresses in agriculture S&T have enabled China to meet the food needs of 22% world’s population with only 7% of world’s cultivable land. Improve people’s health: • Life expectancies of Chinese exceed 73 years and have reached the levels of medium-developed countries. • A number of severe epidemic diseases and chronic diseases are under-control. • Develop new vaccines and medicines, medical equipments. • Facilitate the modernization of traditional Chinese medicine. Technology diffusion to increase farmers’ income and to eliminate poverty • Mission of the “Spark Program”(1985--): Spread technology to rural areas to richen peasants , develop industrial cluster based on deep processing of agricultural products and transfer rural labor force from agriculture to township enterprises. • Hundred and thousands of adoptable technologies have been transferred to rural areas and township enterprises. • Millions of technicians and scientists provided training and demonstration in rural areas on new technologies. • The adoption of new technologies has helped over 100 millions peasants move and stay out of poverty. Develop and diffuse information technologies to modernize people’s life • Innovate and provide low-cost access to ICTs to accelerate their nationwide application • Expand the telecommunication networks to most of the territory Mobile phone and fixed telephone users: 0.7 Billion Internet users: over 100 millions • “ Narrow Digital Gap” project : extend networks to rural and remote areas, long-distance medical diagnosis and long distance learning Advance science and technology to the general public, and provide technological training • National Public Understanding S&T Week in May • Most of the townships have technology training centers C. Support sustainable development Energy , water, and resource conservation Research, development, demonstration and deployment of clean energy technologies Environment protection and pollution control Protection and recovery of eco-system D. Safeguard national security Develop nationwide information networks and technology platforms for emergency management (e.g., natural disaster, pandemic disease, severe accident, terrorism) Innovate and upgrade defense technologies Transfer military technology into civilian application E. Enhance innovative capability High-tech R&D Program (863 Program) National Key Basic Research Program (973) National Natural Science Foundation National Labs R&D infrastructures Big-Science projects F. Encourage scientists’ innovative passion Enhance the reform in personnel management by offering R&D organizations and scientists with more autonomy and flexibility.. Increase R&D investment, and increase the share of grant fund for exploring research Increase scientists’ income IPR incentive policy National reward Peer review G. Expand international S&T cooperation Established S&T cooperation with 150 countries and regions Signed government agreements on S&T cooperation with 95 countries Participate in international R&D programs, such as ITER, Global climate change etc Bilateral and multilateral joint research efforts Establish platform for enterprises, universities cooperating with their partners H. Legislation & regulation on S&T and IPR “Rule of Law” “Pursue S&T progress based on law” • S&T Progress Law, S&T Achievement Transfer Law, Public Understanding of S&T Law • Patent Law, Trademark Law, Copyright Law • Regulations on S&T and IPR • Law and regulation enforcement system and mechanism 3. National Long- and Medium-Term Plan for Science and Technology Development (2006-2020) Highlights of New National S&T Plan Core of this new S&T plan is to enhance the indigenous innovation-capability. Rely on innovation as the principal driving force for development in the coming decades Facilitate the coherent and balanced development of near- and long-term science and technology Integrate science-and-technology policy with economic policy Associate S&T innovation with institutional innovation Pursue both indigenous innovation and international cooperation, and their integration Principal Goals of Innovation Strategy Lay strong emphasis on enhancing the indigenous innovation-capability, and the capability to create and possess increasing number of intellectual property rights (IPR) in core and advanced technologies Improve competitiveness Increase productivities and efficiency Improve people’s living standard Improve environment quality Capacity Building for Innovation Capacity building for innovation has three foci: Capabilities in absorbing and improving imported technology Capabilities in integrating existing technology, emerging technology and new invention to produce new IPRs Capability in producing original invention through basic research The Overarching Goal The overarching goal is to become an innovative nation by 2020. This implies that the quality of China’s development and competitiveness will be elevated to a new and higher level, and that the gaps with current innovative-nations (e.g., the United States, Japan, and some EU countries) will be narrowed on a number of innovation indicators. Major targets for 2020 Contribution of S&T-progress to GDP-growth exceed 60%, and innovation becomes the main driving force for rapid economic and social development at lower consumption of natural resources and less environmental damages. The ratio of R&D expenditure to GDP increases to 2.0% by 2010, and 2.5% by 2020, from the current level of 1.35%. R&D outputs (such as IPR, technology- standards and published academic papers) increase significantly. Indigenous innovation becomes a main source of advanced technologies, and reliance on foreign technologies is alleviated. Chinese economy will have a better industrial structure, with the high-tech manufacturing and knowledge-based service as the dominant industries. A number of Chinese high-tech enterprises become world-class innovators. Several universities and research institutes rise to worldclass levels as well. An effective national innovation system including new public-private partnership is developed in China to provide institutional support to the development strategy. Priority Areas Priorities are given to science and technology areas that are essential to the sustainable economic- and social-development. • • • • • • • • • • • Clean and highly-efficient energy technologies Exploitation and conservation of natural resources Environment and eco-system Modern agriculture Health Transportation Manufacture Information and e-service Urbanization Public safety Defense Technologies on the frontier: • Advanced information technologies, next generation network, genetic and proteomics biotech, nano-technology, advanced laser, aerospace, new-generation energy, new material, marine technology, etc. Basic research Institutional innovation A. Facilitate enterprises to become key participants in R&D and to play leading roles in innovation B. Encourage close cooperation among business, academia, and research institutions C. Reform the education system to make it more friendly to the growth of creative and inventive talents D. Reform the S&T personnel management E. Accelerate the development of non-for-profit organizations (NPO) F. Reform government’s management system to improve its efficiency and transparency Incentive Policy Framework A. Tax incentives and related initiatives to encourage enterprises to strengthen their innovation-capabilities and to increase R&D investment. B. Incentive policies to stimulate more inventions, to speed up their commercialization and diffusion, to facilitate spin-off of start-ups. C. Fiscal and monetary policies to ensure an adequate supply of funds for innovation. D. Financial policy to stimulate and support the development of venture capital, seed funds, and other investments in innovation and high-tech start-ups E. Incentive trade policy to expand domestic and global markets for innovation F. Favorable policy to attract and train talented individuals G. Enforcing laws and regulations for IPR protection H. Promote public understanding of science and innovation to increase citizens’ awareness I. Expand international S&T cooperation and exchange Thanks for your attention!
