1 The Innovation of S&T System and the Development of the Computer Industry in China Zhong Xiwei 23-Feb-2006

2 Main contents The innovation of the S&T system in China An overview of URI-industry linkage in China The development of China´s computer industry URI-industry linkage in China´s computer industry

3 Major Questions Concerned How has the URI-industry linkage been motivated What is the situation of the URI-linkage in China What roles played by URIs and government in the computer industry

4 The innovation of the S&T system in China The S&T reform of China  The solution of the CCCP on the reform of the S&T system ( )  Endorsement of URI-affiliated enterprises by State Council ( )  Transformation of RIs(1999-)

5 The effects of the S&T reform  Enhanced R&D activities  Expanded innovative capacity  Strengthened URI-industry linkage

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13 An overview of URI-industry linkage in China Technology service Contract Joint research project Patent licensing Science parks URI-affiliated enterprises

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15 *University- affiliated enterprises- the particular issue University-affiliated enterprises refer to those enterprises that are in one way or another controlled by the universities they are affiliated with 3 models of university-affiliated enterprises in China The performance of university-affiliated enterprises

16  592 of 1010 universities has UAEs, 2355 in high-tech in 2004

17  High-tech UAEs made a total income of 807 hundred million yuan and net profit of 24 hundred million yuan in 2004

18  Engineering universities and top comprehensive universities have advantages

19  67% of the UAEs owned solely by universities, 32% with domestic shareholders, 1% with foreign partners  More than 40 UAEs listed in the stock market  88% run by universities, 12% by departments

20 The development of China´s computer industry PC industry Growth of PC Production (thousand units)

21 Software industry

22 URI-industry linkage in China´s computer industry Government policies and programs  National High Technology Research and Development Program or “ 863 ” program  Torch program  Five-year plans

23 Origins of the computer industry  Spin-offs from the government research institutes, Lenovo  University-affiliated enterprises, Founder  Greenfield startups by university staff or graduates, Stone  Spinoffs from state run firm, Great Wall

24 The model of URI-industry linkage  URI run enterprises  Spin-offs  Strategic alliance alliances, i.e. Technical service contracts, science parks, etc.

25 CAS and its Spin-offs  CAS, the highest academic research institute and a system of government research instutes of S&T  The most successful research institute in spinning-off enterprises, more than 400 spin- offs  Owner of 19 companies and shareholder of other 6 companies, including Lenovo

26 Universities and their affiliated enterprises UREs in the Chinese Top-100 S&T Firms (2003)

27  Founder group: key technology results of government-led project, pictographic language electronic publishing system  Jade Bird Corporation: “ Jade Bird Computer Aided Software Engineering ”

28 Conclusion How has the URI-industry linkage been motivated ?  The pull factor-lack of industrial R&D capability  The push factor-government policy orientation

29 How to explain the emergence of successful URI-affiliated enterprises or spin-offs in computer industry?  relatrive strong system of URIs and weak domestic enterprises  Policy of “catching up technology while maintaining central control over key industry  Strengthed URI linkage

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