NEW POLICIES PROMOTE TECHNOLOGY TRANSFER
NEW POLICIES PROMOTE TECHNOLOGY TRANSFER The Chinese government issued a regulation on promoting the transformation of R&D results recently. The new policies, which were jointly formulated by seven governmental departments, are aimed at further encouraging Chinas scientists to commercialize their R&D results, set up new hi-tech business and speed up the process of Chinas hi-tech industrialization. ... Xu Guanhua, vice minister of Science and Technology, the new stipulations are designed to cope with three problems raised from technology transfer in the country. The first problem lies in the fact that, the rate of the R&D result transformation is still very low due to a lack of incentive policies. In the high-tech industry, in particular, which is characterized with high risks, scientists are unwilling to go out of their laboratory and to throw themselves into technology transfer unless there are operational incentive measures. ... The third problem is most existing laws, statutes and policies on technology transfer are too general and lack of concrete measures. ... In addition, some new policies are suggested in the document. ... To cope with this situation, the stipulation set a rule with clear terms that, after one year since its achievement, if an R&D finding still fails to transfer itself to commercial application, its developer is obligatory to transform the finding into manufactured goods in line with the agreement signed with his research unit. ... According to the "Law for Promoting Transformation of S&T Results", there are three provisions in regard to rewarding the hi-tech developers: (1) not less than 20% of the net revenue derived from a technology transfer are to be awarded to its developer; (2) within 3--5 succeeding years since its production has been put in operation, not less than 5% of the yearly output value coming from an invention have to be extracted by the inventor; (3) in a share-holding company, the developers reward may be counted in the form of stocks or invested funds.