University Technology Transfer in China

1. University Technology Transfer in China Prof. Chi Renyong Institute of Small & Medium Business Development, Zhejiang University of Technology

2. Main contents University and Technology Transfer Transfer Patterns and Some Cases New Trend in Transfer Pattern

3. University is important research Force in China • In 2005,all 1731 Chinese universities had 258 thousands R&D scientists, and spent 36 ,086.4 millions RMB in S&E activities. • In2005, universities undertake about 41% basic research, and 27% applied research in china.

4. University achievement and Applicable Technology for firms In 2005, Chinese universities undertake 220,759 R&D projects, and published 477,756 papers, and obtained 8843 patents Research Achievements University Research Paper Research report Technological Theory Research Methodology Experienced Research scientist Idea for future technology Patents Prototypes …… Indirectly impact firm’s R&D activities Directly absorbed by firms

5. China universities are tightly and actively connecting to local firms, and are important sources for firm technology • In 2004, 37.9% of S&E expenditure in China universities come from enterprises, totally 14.86 billions RMB. • About 25~40% of local firm’s external R&D expenditure are transferred to University

6. Survey of China university technology transfer • In 2005, Chinese universities contracted 7321 technology transfer, totally 2,215.077 million RMB. And 842 patents are transferred to firms from universities. • Stated-owned firms and local private firm are major users of university technology.

7. Advantage Disadvantage Why firms choose university as technology source in china? In firm’s views 1 2 3 Foreign Company Research Institute University • Cheaper • Sharing R&D resources (facility, R&D scientist ) • Easy reach for local firm • Relatively advanced technology • Rich research resource, and strong research capability • Advanced technology • Easy to market and commercial • More specilized • Relative cheaper • Strong research capability • Not perfectly match firm‘s needs • Not totally commercial • Not easy for sharing R&D scientist • Too much concerned theory • Not familar with market • Expensive • Generally, not core /recent technology

8. University’s Technology Transfer in China Transfer Patterns and Some Cases New Trend in Transfer Pattern

9. Typical patterns of university technology transfer Pattern Based on Academic Publication • Publication and release of campus research Pattern Based on Faculty’s Social Interaction • Technogical consulting/technological service/ technological training • Faculty participating firm’s interior R&D project (Part-time job etc..) Pattern Based on Research Consortia • Commissioned development • Cooperative research • Joint Development Laboratory (JDL) • R&D alliance Pattern Based on Technology Transaction • Patent license/ applicable technology trade • Technology investment to be a shareholder Pattern Based on Spin-off Organization • Spin-off organization (university-affiliated company, incubator, science park) others

10. Tsinghua Uni. Tech Spin-off: Commercializing of Cargo InspectionSystems

11. Shaoxing Textile Research Alliance Background: • Established by 3 local governments, 6 universities, 4 research institutes and 22 local textile firms in 2006. • Aim to transferring applicable technology, promoting research cooperation, improving research capacity of local textile cluster. • The consortia undertake 70 governmental R&D projects, and 10 cooperative R&D projects, all input 40 million RMB R&D expenditure, and obtain 400 patents in 2006-2007.

12. Safety Technology industrial park in Hangzhou Background: • Established by zhejiang police vocational college and local government in 2007. All 14 small firms engaging in safety technology field are incubated in the park. • The small park is located in campus and play a role as incubator.

13. University’s Technology Transfer in China Transfer Pattern and Some Cases New Trend in Transfer Pattern

14. Evolution of transfer pattern for university’s technology • Pattern style of technology transfer by university is gradually changing. • In 1980s and 1990s weekend professor phenomenon boomed in Zhejiang Pharmaceutical Industry. • In 1990s, university’s spin-off company grown rapidly. Many technology are industrialized by spin-off company, such as Tsinghua Tongfong company, Beijing univeristy founder, etc. • Today, technology transfer centre, joint development laboratory, incubator, science park, and research consortia are popular patterns in china

15. New characteristics in university’s technology transfer • Spin-off organization co-established by university and local firms is usual. We used to have university managing company, now university as a stockholder. • To be more complex and systematic. University and firm are more deeply involved in transferring process. Firms are from simply buying technology to cooperative research, joint venture, commitmentproject, patent license, etc. • Most recently, joint institute by Uni. & firm is more favourable, because of sharing of R&D resources. • Local government plays critical roles in establish such transfer channels.

16. Motives Behind Pattern Evolution Background: The technological gap between university and firm is shrinking---firms are becoming highly request in technology level and marketable Firms are more concerns its own research capability Government financial support is increasing again, and university is more concentrates on academic research

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