Provisional Regulations on the Support of Industry-Technology Innovation Strategic Alliances by National Science and Technology Programs

　　National Science and Technology Development Document [2008] No. 338

　　Article 1: The Industrial Technology Innovation Strategic Alliance (hereinafter referred to as the “Alliance”) is an effective organizational model for building a technology innovation system—under market economic conditions—that is enterprise-led, market-oriented, and integrates industry, academia, and research. To promote the development of the Alliance and guide technological innovation and progress in industries, these Regulations are formulated in accordance with relevant national management measures for science and technology programs.

　　Article 2: The “alliance” referred to in these Regulations means a collaborative entity and cooperative organizational form established among enterprises, universities, research institutions, or other organizations, based on shared development needs, aimed at achieving breakthroughs in major industrial technologies, and underpinned by legally binding agreements, whereby participants engage in joint R&D, complement each other’s strengths, share benefits, and jointly bear risks.

　　Article 3: International science and technology programs (including major special projects, the National Science and Technology Support Program, the 863 Program, and others) shall actively support the establishment and development of the alliance. Alliances that have been reviewed and approved by the Ministry of Science and Technology may participate as project organizing entities in the implementation of national science and technology program projects. The procedures and methods for such review shall be stipulated separately.

　　Article 4: In the organizational and managerial responsibilities for projects under national science and technology programs undertaken by the Alliance, the chairperson unit of the Alliance is the primary responsible entity and bears the legal responsibility for the implementation of these projects. Major matters must be reviewed by the Alliance’s Board of Directors, and relevant duties and management procedures shall be governed by the applicable regulations for each respective science and technology program.

　　Article 5: Principles and Conditions for the National Science and Technology Program’s Support of Consortia:

　　(1) Alignment with National Strategic Goals. The technological innovation direction of the alliance should be consistent with the tasks identified in the “National Medium- and Long-Term Plan for Science and Technology Development (2006-2020),” as well as with national policies on industry, environmental protection, and energy. It should also align with the directions supported by national science and technology programs and focus on the key areas of development for regional pillar industries.

　　(2) Meeting the needs of industrial development. The establishment of the alliance should reflect the common needs of the relevant industry sector, represent the direction of technological innovation in the industry, and align with trends in industrial development.

　　(3) The technological innovations of the alliance should have a strong driving effect on the industry. The alliance’s R&D projects should be representative of the industry, and their technological breakthroughs should address key bottlenecks hindering industrial development, thereby significantly boosting industrial growth and enhancing competitiveness.

　　(4) The alliance should be enterprise-led and fully embody the integration of industry, academia, and research. The alliance must include leading enterprises and innovative companies (as pilots) from the relevant industry, as well as research-oriented universities and high-level research institutions. Universities and research institutions participating in the collaboration should demonstrate cutting-edge expertise in their respective technical fields.

　　(5) National science and technology programs will support alliances that have passed the review to undertake science and technology program projects. Meanwhile, in line with national goals and the technological innovation needs of key industries, enterprises, universities, and research institutions are encouraged to form alliances and take on such projects.

　　(6) Building on the alliance’s establishment of a joint investment mechanism, the National Science and Technology Program will innovate its support approaches for the alliance, actively exploring support methods such as grants, interest subsidies on loans, and post-subsidies.

　　(7) All members within the alliance shall sign legally binding agreements and establish standardized internal operational management systems.

　　Article 6: The relevant national science and technology programs shall, in accordance with their respective management procedures, reflect and solicit the technological needs of the consortium, and carry out management at each stage—including review, project approval, inspection, and acceptance—according to their own management procedures. Based on the technological innovation directions identified in the Consortium Agreement and the positioning and key support areas of each relevant science and technology program, the chairperson unit, acting as the representative of the consortium, shall submit project proposals to the Ministry of Science and Technology. Upon approval, the science and technology projects (research topics) shall be organized and implemented in accordance with the management regulations of the respective science and technology programs.

　　Article 7: The leading unit of the alliance’s board of directors bears overall responsibility for the implementation of the project and is accountable to the management department of the science and technology program. Within the alliance, a mechanism for shared responsibility shall be established; accordingly, the leading unit will hold the project undertaking units accountable for their respective responsibilities.

　　Article 8: Establish a regulatory mechanism integrating decision-making, implementation, and supervision and evaluation. The Ministry of Science and Technology shall organize or entrust third-party science and technology supervision and evaluation agencies to strengthen oversight and inspection of the alliance’s implemented projects. Within the alliance itself, corresponding supervisory and management bodies must also be established to create a mechanism for self-supervision and evaluation.

　　Article 9: In accordance with the relevant provisions of the National Science and Technology Program Management Measures, when a project or research topic cannot be implemented as planned, it shall be promptly adjusted or canceled. If a unit undertaking a research topic—as a member of the consortium—withdraws from the consortium midway, the Consortium’s Board of Directors shall submit a written proposal for adjusting or canceling the topic, which, after approval by the Ministry of Science and Technology, shall be implemented. Should the consortium serving as the project organizing entity dissolve, the Ministry of Science and Technology may, based on the implementation status and evaluation opinions, directly make adjustments.

　　Article 10: The Alliance shall manage the intellectual property rights arising from national science and technology programs in accordance with the "Law on Progress in Science and Technology," the "Several Provisions on the Management of Intellectual Property Rights for Outcomes of National Research Programs" (Guobanfa [2002] No. 30), and the relevant provisions of each program’s management measures, and shall also comply with the following stipulations:

　　(1) Intellectual property rights arising from national science and technology program projects undertaken by the Alliance shall be owned by the entity responsible for the project (or sub-project).

　　(2) When a consortium applies for national science and technology programs, it shall, in accordance with the consortium agreement, specify in the project application and task description the ownership of research results and intellectual property rights, the terms for licensing and implementation, the distribution of benefits, and the arrangements for handling intellectual property rights in the event of the consortium’s dissolution or a member’s withdrawal. Projects with unclear agreements on intellectual property rights will not be approved. If the consortium or the entity undertaking the project violates the agreed-upon distribution of rights to research results and intellectual property, it will be barred from participating in the implementation of national science and technology programs for five years.

　　(3) The alliance has the obligation to grant paid or royalty-free licenses for intellectual property rights generated from undertaking national science and technology programs to other domestic entities.

　　(4) If the Alliance intends to transfer or exclusively license for implementation the intellectual property rights arising from national science and technology programs to entities outside China, it must obtain approval from the Ministry of Science and Technology.

　　Article 11: In accordance with these Regulations and the Management Measures for National Science and Technology Programs, the Alliance shall formulate supplementary management measures for projects undertaken under national science and technology programs and submit them to the Ministry of Science and Technology for record. Such measures shall cover aspects including the organizational and management system for projects, matching and use of funding, supervision and accountability mechanisms, as well as arrangements for sharing and allocating intellectual property rights. The supplementary measures shall be aligned with the Alliance’s established management practices.

　　Article 12: All relevant departments (industries) and local authorities shall also take effective measures to actively support the establishment and development of the alliance.

　　Article 13: These Regulations shall be interpreted by the Ministry of Science and Technology and shall take effect from the date of their promulgation.