Ma Mingjie

I. The Current Situation of Government Support for Research on Common Technologies in China

1. Research on common technologies has gained support in the central government plan, but has not been listed as a policy priority.

Since 1983 when the National Key Technologies R & D Programme was started, "to support research on common technologies" has become one of the aims of policies on science and technology and industry. In the National Key Technologies R & D Programme, the Industrial Technology Development Base Plan and other relevant plans, explicit statements are made on support for research on common technologies. However, research on common technologies is always mixed with product development projects in government plans, and identical organization forms and policies are used and adopted.

2. Scientific research institutions within the industry have always been the main force supporting research on common technologies.

Before 1999, one of the main tasks of the 242 scientific academies and research institutes directly under the 10 State bureaus subordinated to the former State Economic and Trade Commission was to conduct research on common technologies within the industry, with 12 large scientific academies and research institutes, including the Beijing Central Iron & Steel Research Institute, constituting the core force for developing common technologies within the industry. These academies and research institutes assumed the responsibility of carrying out research on the common technologies of most of the national industries with funds entirely allocated by the government. After the structural reform of the scientific research institutes in 1999, some academies and research institutes are still engaged in research on common technologies, but there exists great controversy as to whether these academies and institutes have reduced their input in such research and whether the managerial system of these academies and institutes is favorable to research on common technologies and the advancement of industrial technology.

II. Major Problems

1. The policy on industrial technology, which is in line with public financial principles and international rules and meets the requirements of industrial technology upgrading and international competition, has not yet been established

Instances of the government subsidizing enterprises in their product development and "construction work and project development" still exist, which gives rise to an absurd situation: on the one hand, the government is constantly providing financial aid in respect of product development and scaled production in competitive fields, and on the other hand, there has not been any breakthrough in some key common technologies for a long time due to lack of funds, which means industrial competitiveness cannot be improved at all.

2. The concept and evaluation criteria of common technologies have not been explicitly defined, which leads to the fact that there is no unified standard on the selection of common technology projects and definite policy targets, and this has a direct impact on the effectiveness of the policy.

3. The government does not make effective arrangements for research into common technologies

(1) It lacks unity and coherence and does not give prominence to the key points; the organization form is single

The government lacks clear categories, focus on key points and coherence. Moreover, the only organizational form is that of direct financial aid.

(2) The principle of taking the industry as the guide is not given due prominence

Research on common technologies is different from laboratory research in the fact that it should aim to meet the needs of enterprises, based on the principle of serving the industry. In China, however, in respect of project selection, the technology route is primarily determined by the government or scientists, and the enterprises’ demands on common technologies are not adequately reflected; in terms of funding, the government has not established a multi-level and multi-channel fund input mechanism; and in terms of selection of responsible units, the requirement for the enterprises to participate in the research is not highlighted.

(3) The management and organization of the research on common technologies are not rational

Firstly, the managerial system of the scientific academies and research institutes, the main force in research on common technologies in China, cannot easily meet the demands of research on common technologies. Secondly, the deepening of the structural reform of the market economy in China and the continuously intensifying market competition at home and abroad all require the enterprises to become the real mainstay of innovation and establish more rational and effective organization and management patterns which can motivate the enterprises

(4) The spread of the achievements of common technologies is not given full attention, and there lacks relevant policy to encourage research on common technologies, especially policies on intellectual property

The policy to encourage the diffusion of common technologies is mainly reflected in two aspects: one is to encourage knowledge-sharing and advantage complementation in the course of cooperative research, the other is to make an intellectual property policy which can contribute to the transfer and industrialization of research findings. In China, it is quite common for one unit to take full charge of a research subject in government-funded research. Meanwhile, a great deal of the achievements of the researches funded by the government remain within the research units, and there are no specific evaluations and responsibility restraints on whether the research findings have any economic benefits and social effects.

III. It Is Urgently Necessary to Give Stronger Support to Research on Common Technologies

Firstly, after China’s accession to the WTO, the government’s links, its financial aid to industrial technology research and development and the proportion and form of funding are restricted by related provisions such as the Agreement on Subsidies and Anti-subsidy Measures. In order to abide by its commitments in the WTO Agreement, China will have to adjust the position and role of the government in industrial technology research and development.

Secondly, it is necessary to establish a public financial system and adapt to the condition of scarce resources. According to public finance principles, the government cannot directly subsidize product research and development and manufacturing, and attend to each and every aspect from the very beginning to the end. Increasing input in and making effective arrangement for the research on common technologies within the industry are main tasks to consider as the government changes its role.

Thirdly, it is necessary to promote the upgrading of industrial technology and improve the international competitiveness of the industry. The practice of relying on direct foreign investment and introducing and imitating foreign technologies to realize economic growth cannot go on for long, and the sustainable development of the country should be based on independent innovation. At present, most industries in China have entered the stage where there is an urgent need for a forward leap in the industrial technology level and a breakthrough in a great many key common technologies, therefore, the industrial community’s demand on common technologies is becoming even more pressing. How to make use of the scarce resources of the country, concentrate on the crucial points and break through the technological bottlenecks are very real and pressing problems.

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