Research and Development in China

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Research and Development in China

• March 16 2005 ROMA
• WANG SHAOQI
• Ministre - Councilor
• Chinese Embassy in France

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Contents

• I. Economic Situation
• II. RD Situation
• III.National Programs
• IV.Torch Program and INNOFUND
• V. RD Institutions of Foreign
• Compagnies in China

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I.Economic Situation General Domestic
Production GDP (Billion USD)
4
I. Economic Situation Growth Rate
5
I.Economic Situation
Exterior Commerce (Billion US)
6
II. R D SituationNational ST Financing
indicators
7
II. R D Situations Gross Domestic
Expenditure on R D (billion USD)
8
II. R D Situations National RD
personnel indicators
9
II. R D SituationsNational ST output
indicators
10
II. R D Situations National ST output
indicators

• SCI Science citatin index
• ISTP Index to Scientific and Technical
• Proceedings
• EI Engineering Index

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II. R D SituationsNational RD expenditure by
sector performance and character of work
Character of work
Sector of performance
12
II. R D SituationsHigh-tech industry
expenditure on RD and as a percentage of value
added
13
IV. National Programs National Programs

• 1.National Hi-Tech. RD Program (863)
• 2.Key Techologies RD Program
• 3.National Program on Basic Reseaech (973)

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IV. National Programs National Programs

• 4.RD Condition and Capacity Programs
• 4.1.Program on State Labratories
• 4.2.Mega-Project of Science Research
• 4.3.Program on National Engineering
• Centers
• 4.4.Program on ST intenational
• Cooperation

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IV. National Programs National Programs

• 5.ST Industral Environmental Construction
• 5.1.Spark Program
• 5.2.Torch Program
• 5.3.Technical Updating Fund for Small and
  
• Medium Entreprisese
• 5.4.Agricultural ST Achievments Conversion
• Fund
• 5.5.Productivity promotion Centers

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IV. National Programs1.National Hi-Tech. R
D Program (863 Program)

• Begin since 1986, Implented during 15 years
• In April 2001, the government approved continued
  implentation for 2001-2005

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IV. National Programs1.National Hi-Tech. R
D Program (863 Program)

• Objectives
• Boost innovation capacity. A strive to achieve
  breakthroughs in Key technical fields
• Achieve   leap-forward development in Key
  high-tech fields

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IV. National Programs 1.National Hi-Tech. R D
Program (863 Program)

• Objectives
• Continue to aim at the forefront of world
• technology development
• Nature a number of high-tech industral growth
  points

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IV. National Programs 1.National Hi-Tech. R
D Program (863 Programs)

• Major Tasks
• Formulate Key technologies for the construction
  of Chinas information infrastructure
• Develop Key biological agricultural and
• pharmaceutical technologies

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IV. National Programs 1.National Hi-Tech. R
D Program (863 Programs)

• Major Tasks
• Master Key new materials technologies and
  advanced manufacturing to boost industrial
  competivities

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IV. National Programs 1.National Hi-Tech. R D
Program (863 Programs)

• Major Tasks
• Achieve breakthroughs in Key technoloies for
  resources development,environment protection and
  energy development to serve the sustained
  development of society

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IV National ProgramsIV National ProgramsIV.
National Programs 2.Key Technologies RD
Program

• First national program of ST launched in 1982.
• Planned every five years aiming at economic
  progress and sustainable development.
• Make remarkable contributions to the traditional
  industry for its technical restructing.

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IV. National Programs 2.Key
Technologies RD Program

• Major Tasks
• Upgrading the manufacturing industry by
  speeding up the application of IT and other high
  technologies, develop technologies and equipments
  for clean energy, intelligent traffic and textile
  post-treatment.

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IV. National Programs 2.Key Technologies RD
Program

• Major Tasks
• Promote in-depth product processing for
  sustainable agricultural development.
• Accelerate application in different industral
  sectors.

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IV. National Programs 2.Key Technologies RD
Program

• Major Tasks
• Develop technologies in urban enviroment
  pollution control, rational utilizaton of water
  resources, prevention and alleviation of
  disasters.
• Modernization of traditional chinese
• medicine(TCM)

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IV. National Programs 3.National Program on
Basic Research(973)

• Started 1997.
• Purpose strengthen basic research in line with
  national strategic targets.

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IV. National Programs 3.National Program on
Basic Research(973)

• Objective
• Mobilize Chinas scientific talents in
• conducting innovative research on major
• scientific issues in agriculture, energy,
• information, resources and environment,
• population and health, materials and related
• areas.

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IV. National Programs 3.National Program on
Basic Research(973)

• Major Tasks
• Strengthen and support research on a number
• of major scientific issues concerning national
• economic and social development.
• Consolidate a high qualified team for
• basic research and train a number of personnel
  
• possessing innovative capabilities

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IV. National Programs 3.National Program on
Basic Research(973)

• Major Tasks
• Improve and perfect program management to
• create a sound environment for primary
• innovation.

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IV. China Torch and Innofund Programs China
Torch and Innofund Programs

• Torch program launched 1988
• Innofund program launched 1999

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IV. China Torch and Innofund Programs China
Torch and Innofund Programs

• Mission of Torch and InnofundInnovation and
  Incubation
• To accelerate, with a market orientation,the
• - commercialization of RD achievements
• - industrialization of technology products
• - internationalization of technology
• industries

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IV. China Torch and Innfound Programs
Situations of SMEs in China

• A rapide growth since 1978
• 10 million SMEs registered
• Already an essential part of the national
  economy
• - 43 of tax revenue
• - 50 of GDP
• - 60 of export
• - 75 of urban workforce

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IV. China Torch and Innofund Programs
Situations of SMEs in China

• Technology-based SMEs
• - 120,000 by end of 2003
• - 30-60 annual growth rate of major
• economic indexes

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IV. China Torch and Innofund Programs Main
Contents of the Torch Program

• S T Industrial Parks(53)
• - Preferential policies for
• tenants(e.g.15 tax on profit)
• - High growth of companies with 3.9
• million jobs created

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IV. China Torch and Innofund Programs Main
Contents of the Torch Program

• S T Business Incubators(over 100)
• Torch program sector-specific industrial
  bases(65)

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IV. China Torch and Innofund Programs Main
Contents of the Torch
Program

• Torch Program Projects
• - 1000 projects a year, no direct funding but
• a major credit label
• Personnel training
• Globalization of new high-tech industries

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IV. China Torch and Innofund Programs
Innovation fund for Technology-Based SMEs

• Mission Funding technology innovation of SMEs
• Established May, 1999

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IV. China Torch and Innofund Programs
Innovation fund for Technology-Based SMEs

• Innofund Administration Center
• - Established June, 1999
• - Mission Executive management of
• Innofund

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IV. China Torch and Innofund Programs
Innovation fund for Technology-Based SMEs

• Funding Budget
• - 1999 1 bn RMB(120 M USD)
• - 2000 500 M RMB (60 M USD)
• - 2001 800 M RMB (96 M USD)
• - 2002 500 M RMB (60 M USD)
• - 2003 500 M RMB (60 M USD)

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IV. China Torch and Innofund Programs
InnofundMajor functions

• Supporting projects in early stage
  commercialization with
• - innovative technology and
• - good market potential but
• - Unattractive for commercial capital

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IV. China Torch and Innofund Programs
InnofundMajor functions

• Laying the foudation for industrial expansion and
  introduction of commercial funds
• - Targeting at market failure where
• government support is needed
• - Bridging the gap of capital market
• - Incubating innovative start-ups

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IV. China Torch and Innofund Programs
InnofundSupporting Criterions

• Technology-based
• - Involving in high-tech RD,
• production/services
• - RD investment/sales?3
• - Technological personnel/total employees ?
• 30

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IV. China Torch and Innofund Programs
InnofundSupporting Criterions

• SMEs
• - Various ownership(Chinese equity 50 up)
• - less than 500 employees
• Technology Innovation
• - Original technology or independent IPR
• - Strong market competitiveness
• - High economic potential

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IV. China Torch and Innofund Programs
Innofund Funding Forms

• Grant
• - startup capital for technopreneures to
• commercialize their research achievements
• - partial subsidies for continuing innovation
  
• of technology-based SMEs

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IV. China Torch and Innofund Programs
Innofund Funding Forms

• Grant
• - equal amount of matching capital from
• applicant
• - matching fund from local government
• generally required

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IV. China Torch and Innofund Programs
Innofund Funding Forms

• Loan Interest Subsidy
• - production expansion of innovation projects
• with required technological level, scale
  and
• profitability
• - subsidizing 50-100 interest for
• commercial loans

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IV. China Torch and Innofund Programs
Innofund Technology Fields

• IT and Electronics
• Biotechnology
• Advanced Materials
• Automation
• Environmental Resources
• New Energy and Energy Saving

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IV. China Torch and Innofund Programs
Innofund Statistics(99-03)

• Projects Evaluated 20449
• Projects Approved 4946
• Total Budget 3.3 bn RMB (400 M USD)

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IV. China Torch and Innofund Programs
Innofund Statistics(99-03)

• Average funding 670,000 RMB(80,000 USD) per
  project
• 1. 24 projects derived from the national
• programs
• 2. 20 projects jointly developed by the
• entreprise, university and research
• institute
• 3. 34 entreprise funded start-up(?18
• months)

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IV. China Torch and Innofund Programs
Innofund Statistics(99-03)

• 4. 29 entreprises founded by technological
• personnel
• 5. 21 entreprises by universities/research
• institutes
• 6. 9.7 entreprises by returned overseas
• scholars

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IV. China Torch and Innofund Programs Innofund
Funding by Years
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IV China Torch and Innofund Programs Innofund
Funding by Tech Field
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IV China Torch and Innofund Programs Economic
Growth Innofund Enterprises
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V RD Institutions of Foreign Compagnies in China
RD Institutions of Foreign
Compagnies in China

• Policy
• Chinese government encourages
• the Foreign Compagnies to install
• RD Institution in China.

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V RD Institutions of Foreign Compagnies in
China More and more Foreign RD Center
established in China such
as

• Motorala, Intel, IBM, Microsoft, GM, HP,
• Sony, Fuji, Sumsong, Hyundai
• Alcatel, EDF, Thomson, Simens
• Ericsson, Nokia, Alstrom

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V RD Institutions of Foreign Compagnies in China
Raisons

• Approach the big market
• Make the product to satisfy more the
• markets demands
• Very qualifeid scientistes and engineers in
• China
• Lower cost of Investment
• Salary,Construction,Equipment,Operation

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THANKS!