Guiding Opinions on Promoting the Establishment of Industrial Technology Innovation Strategic Alliances

　　Guo Ke Fa Zheng [2008] No. 770

　　Science and Technology Departments (Commissions, Bureaus), Finance Departments (Bureaus), Education Departments (Commissions, Bureaus), State-owned Assets Supervision and Administration Commissions, and All-China Federation of Trade Unions of all provinces, autonomous regions, municipalities directly under the central government, cities under separate planning, and the Xinjiang Production and Construction Corps; branches and representative offices of the China Development Bank; relevant industry associations; and all relevant organizations:

　　To thoroughly implement the spirit of the 17th National Congress of the Communist Party of China and the National Science and Technology Conference, and to carry out the "National Medium- and Long-Term Plan for Science and Technology Development (2006-2020)" (hereinafter referred to as the "Plan"), we will establish a technology innovation system that is enterprise-led, market-oriented, and integrates industry, academia, and research. This will accelerate the enhancement of industrial technological innovation capabilities. Accordingly, we now put forward the following recommendations for promoting the establishment of strategic alliances for industrial technological innovation:

　　First, we must fully recognize the significant importance of promoting the establishment of industry-technology innovation strategic alliances. Promoting the construction of such alliances is a crucial step in strengthening the integration of industry, academia, and research, and in fostering the development of an innovative technology system. The 17th National Congress of the Communist Party of China emphasized the need to accelerate the establishment of a technology innovation system that is enterprise-centered, market-oriented, and integrates industry, academia, and research. We should guide and support the concentration of innovation resources in enterprises and facilitate the transformation of scientific and technological achievements into real productive forces. Industry-technology innovation strategic alliances represent a new type of technology innovation organization that integrates industry, academia, and research under market economic conditions. They help enhance the organizational level of industry-academia-research collaboration, establishing at the strategic level sustained, stable, and legally protected cooperative relationships. They also facilitate the integration of industrial technology innovation resources, guiding innovation factors toward leading enterprises with competitive advantages. Moreover, they ensure close alignment between scientific research and production, enabling rapid industrialization of innovative outcomes. Finally, they promote integrated technological innovation, drive the optimization and upgrading of industrial structures, and enhance the core competitiveness of industries. The Coordination and Guidance Group for Promoting Industry-Academia-Research Collaboration actively promotes and encourages the establishment and development of industry-technology innovation strategic alliances.

　　II. The industrial technology innovation strategic alliance (hereinafter referred to as the “Alliance”) mentioned in these Opinions refers to a collaborative organization for technological innovation formed by enterprises, universities, research institutions, or other organizations. Such an Alliance is based on the development needs of enterprises and the common interests of all parties, aims at enhancing the capacity for industrial technological innovation, and is underpinned by legally binding agreements, enabling joint development, complementary advantages, shared benefits, and shared risks.

　　Third, the guiding principle for promoting alliance building is as follows: Oriented toward the technological innovation needs of national strategic industries and regional pillar industries, with the goal of fostering core industrial competitiveness, and taking enterprises as the main actors, we will leverage market mechanisms to pool innovation resources around the industrial technology innovation chain, thereby achieving effective integration at the strategic level among enterprises, universities, and research institutions and jointly overcoming technological bottlenecks in industrial development.

　　IV. In promoting the establishment of the alliance, we must adhere to the following basic principles:

　　(1) Adhere to the rules of the market economy. Based on the intrinsic requirements for enterprises’ innovative development and the common interests of all cooperating parties, establish legally binding alliance agreements through equal consultation, thereby imposing effective behavioral constraints and providing robust protection of interests for alliance members.

　　(2) Reflect national strategic objectives. It must align with the priority areas identified in the “Outline Plan,” comply with national industrial policies and policy orientations on energy conservation and emission reduction, and meet the urgent need to enhance the nation’s core competitiveness.

　　(3) Meet the needs of industrial development. It should facilitate the mastery of core technologies and independent intellectual property rights, encourage the concentration of innovation resources in enterprises, help establish industrial technology innovation chains, and promote the development of regional pillar industries.

　　(4) Leverage the government’s guiding role. We must innovate government management approaches, play a coordinating and guiding role, create a favorable policy and legal environment, and promote the establishment of alliances in key areas in response to the pressing needs of economic and social development.

　　V. The Alliance’s primary tasks include organizing enterprises, universities, research institutions, and other entities to carry out technological cooperation around key issues in industrial technological innovation, breaking through core technologies that drive industrial development, and establishing important industrial technology standards. It will also establish public technology platforms to achieve effective division and rational integration of innovation resources and implement shared intellectual property rights. Furthermore, the Alliance will facilitate technology transfer, accelerate the commercial application of scientific and technological achievements, and enhance the overall competitiveness of the industry. Additionally, it will jointly cultivate talent, strengthen personnel exchanges and interactions, and provide a solid talent base for sustained industrial innovation.

　　Six, enterprises, universities, research institutions, and other organizations are encouraged to, in accordance with the spirit of these “Opinions,” start from the actual needs of industrial development, adhere to the rules of the market economy, and actively establish alliances to explore diversified, long-term, and stable mechanisms for industry-academia-research collaboration.

　　7. Launch a pilot program for industry-technology innovation strategic alliances. Conducting this pilot program and supporting and encouraging the development and growth of a number of alliances in key areas are of great demonstration significance for exploring effective mechanisms and models and guiding the development of these alliances. Alliances meeting the basic conditions listed in Article 8 of these “Opinions” may voluntarily apply to participate in the pilot program. The Office of the Coordination and Guidance Group for Promoting Industry-Academia-Research Collaboration will be responsible for selecting the alliances and jointly organizing and promoting the pilot work.

　　8. The establishment of the alliance should meet the following basic conditions:

　　(1) The consortium shall be composed of multiple independent legal entities, including enterprises, universities, and research institutions. Enterprises should occupy a leading position in their respective industries; universities or research institutions should demonstrate cutting-edge expertise in the collaborative technological fields; other organizations may also become members of the consortium.

　　(2) There must be a legally binding alliance agreement that clearly sets forth specific technological innovation goals and delineates the division of tasks among member units. The alliance agreement must be jointly signed and come into effect by the legal representatives of all member units.

　　(3) It is necessary to establish organizational structures for decision-making, consultation, and implementation, and to set up effective decision-making and execution mechanisms. The entity responsible for the alliance’s external obligations must be clearly defined. The alliance’s executive body should be staffed with full-time personnel tasked with handling day-to-day operational matters.

　　(4) It is necessary to improve the financial management system. Corresponding internal management measures should be formulated for the alliance’s funds, and an internal oversight mechanism for the use of these funds should be established. The alliance may entrust the supporting unit of its permanent body with the management of the alliance’s funds. The use of government-funded grants must be subject to supervision by the relevant authorities in accordance with applicable regulations.

　　(5) It is necessary to establish a mechanism for safeguarding interests. The ownership of rights, licensing terms, and the distribution of revenue from the commercialization of outcomes and intellectual property generated by the alliance’s R&D projects should be clearly defined in advance through an agreement. We must strengthen accountability for breach of contract and protect the legitimate rights and interests of alliance members.

　　(6) An open development mechanism must be established. New members should be promptly admitted in response to development needs, and active exchanges and cooperation with external organizations should be pursued. The alliance shall establish a mechanism for disseminating its achievements, and it shall have an obligation to share the outcomes generated from government-funded projects with entities outside the alliance.

　　9. Encourage and support the pilot alliances to take the lead in experimenting with organizational models, operational mechanisms, leveraging their roles in the industry, undertaking major industrial technology innovation tasks, and implementing national policies for independent innovation. Fully mobilize and harness the strengths and enthusiasm of all parties involved in the alliances, fostering a collaborative force to overcome difficult industrial technological challenges and enabling the pilot alliances to generate valuable experience that can be replicated and scaled up for the establishment and development of more alliances.

　　10. Actively explore effective measures to support the establishment and development of industry-academia-research alliances. Innovate the management approach for national science and technology programs, integrating institutional mechanisms with resource allocation to foster long-term, closely integrated collaborations among industry, academia, and research institutions. In accordance with relevant regulations, national science and technology programs will provide support to eligible alliances in carrying out major industrial technological innovation activities. Deepen cooperation between science and technology and finance, innovate financial products, and explore the use of financial instruments such as science and technology loans and technology guarantees to support alliances in tackling key technological challenges and commercializing their research outcomes.

　　11. Encourage relevant industry associations to fully leverage their roles in organization and coordination, communication and liaison, and advisory services, focusing on major technological innovation issues within their respective industries, and thereby promote the establishment of alliances in key areas of their industries.

　　12. All localities should regard promoting the establishment of regional alliances as an urgent task for strengthening the integration of industry, academia, and research and accelerating the development of a technological innovation system. Closely focusing on the pillar industries identified in local economic development plans, they should drive the formation of regional alliances, thereby fostering the construction of regional innovation systems and promoting high-quality, rapid economic and social development.

　　Ministry of Science and Technology, Ministry of Finance, Ministry of Education

　　State-owned Assets Supervision and Administration Commission of the State Council, All-China Federation of Trade Unions, China Development Bank

　　December 30, 2008