China mulls law revision to make academic inventions applicable

BEIJING - China's top legislature on Wednesday reviewed a draft law amendment that aims to facilitate the commercial development of inventions made in research institutes and universities.

The bill, on revising the Law on Promoting the Transformation of Scientific and Technological Achievements, was tabled at the bi-monthly session of the Standing Committee of the National People's Congress, which runs from Wednesday to Friday.

"Although the law, which took effect in 1996, has helped propel sci-tech achievements into production, many provisions no longer fit with China's deepening reform and pursuit of innovation driven development," Minister of Science and Technology Wan Gang told lawmakers.

The revision, the first such attempt, aims to introduce mechanisms to motivate research and ensure enterprises play a leading role in making academic inventions more market-oriented, Wan said.

FROM INVENTION TO OUTPUT

The draft includes articles on the disposal and usufruct of research results.

Among the major revisions, state-owned research institutes and universities will be allowed to transfer or license use of their achievements or invest with them as trade-in.

Instead of turning over gains to the central treasury, the draft allows research establishments to retain all income from the transaction, thus, allowing them to award meritorious scientists and fund future research projects.

In addition to a bottom line of no less than 20 percent of the transfer or license fee for contributing scientists, the draft stipulates that research establishments may fix rewards through contractual agreements with their staff.

"By doing so, the bill has left space for augmented awards for sci-tech personnel," Wan said, adding that the contracts should be prioritized.

To redress the current emphasis on theoretical achievements over application, the bill asked research establishments and their supervisory government organs to set up appraisal systems, which in turn could promote the application of new academic achievements.

New regulations were also raised that would give enterprises more say in prospective research projects.

Advice from industries or enterprises should be taken when setting up research projects using fiscal funding or the drafting of sci-tech plans, according to the bill.

Also, government agencies should ensure enterprises play a leading role in research direction, project implementation and application of results in fiscal funded projects that have clear market prospects or industrial goals, it said.

To enhance interaction between scientists and potential industrial users, the draft encouraged enterprises, research institutes and universities to jointly set up R&D platforms and technology transfer institutions, and to engage in more exchanges and joint training.

While allowing the market to play a more decisive role, the government has placed innovation driven development in a more prominent position.

In a key policy meeting in October, the Communist Party of China (CPC) promised enhanced legislation in key areas, including intellectual property rights protection and promoting transformation of sci-tech achievements to invigorate innovation.

The bill was tabled to break certain rigid mechanisms that had stifled creativity and isolated academic research from attainting its full market potential.

New rules had been included in the bill to allow trading venues and services including information analysis, appraisal and brokerage, Wan said.

The draft also promoted the establishment of a reporting system and a data bank of sci-tech achievements, which would ensure public transparency.

Moreover, new rules were included that would boost financial support for commercial use of sci-tech achievements from financial, insurance and venture capital institutions, in matters of loans and new insurance products.

The government should encourage the development of incubators for enterprises to assist in the creation and early stage growth of small and medium-sized new businesses.