Several Opinions of the Ministry of Education and the Ministry of Science and Technology on Strengthening the Transfer and Commercialization of Scientific and Technological Achievements in Higher Education Institutions

Teaching Technology [2016] No. 3 Number

Education Departments (Education Commissions) of all provinces, autonomous regions, and municipalities directly under the central government; Education Bureau and Science & Technology Bureau of the Xinjiang Production and Construction Corps; and all higher education institutions directly under the Ministry of Education:

　　To thoroughly implement the spirit of the “Several Opinions of the CPC Central Committee and the State Council on Deepening Institutional and Mechanistic Reform and Accelerating the Implementation of the Innovation-Driven Development Strategy,” the “Opinions of the CPC Central Committee on Deepening Reform of the Talent Development System and Mechanisms,” and the “Notice of the General Office of the CPC Central Committee on Issuing the Implementation Plan for Deepening Reform of the Science and Technology System,” and to accelerate the transfer and commercialization of scientific and technological achievements in universities, in accordance with the “Law of the People’s Republic of China on Promoting the Transformation of Scientific and Technological Achievements” and the State Council’s “Implementation of the…” Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements Based on the “Several Provisions” and the General Office of the State Council’s “Action Plan for Promoting the Transfer and Transformation of Scientific and Technological Achievements,” and taking into account the actual conditions of universities, the following opinions are proposed:

　　I. Fully understand the work of transferring and commercializing scientific and technological achievements in universities. The commercialization of scientific and technological achievements is an important component of university-based scientific and technological activities. Universities should guide research efforts to become more closely aligned with the needs of economic and social development. To ensure a continuous stream of effective outcomes that support the transformation and upgrading of economic development, universities must reform and improve their mechanisms for evaluating and assessing scientific and technological achievements, thereby promoting the commercialization of these achievements. In terms of transferring and commercializing university research results, we should not only focus on transferring such成果 to enterprises through technology trading and equity investments based on valuation, but also intensify efforts to integrate industry, academia, and research. This includes encouraging scientific and technological personnel to engage in technology development, technical services, technical consulting, and technical training tailored to the needs of enterprises. Moreover, we need to innovate the organizational approaches to scientific research, mobilizing researchers to actively undertake various research projects aligned with national needs and socio-economic development, and to participate vigorously in the construction of national and regional innovation systems, thus providing both technological support and policy recommendations for economic and social development. As the primary hub for talent cultivation, universities must further guide and motivate researchers to excel in teaching and mentoring, emphasizing the dissemination and transfer of knowledge, and promptly converting research findings into resources for education, curriculum development, and discipline advancement, thereby enhancing the quality of talent development.

　　II. Streamlining administration and delegating power to encourage the transfer and commercialization of scientific and technological achievements. Higher education institutions may independently decide on the transfer, licensing, or investment of their scientific and technological achievements. Except for those involving state secrets or national security, such activities do not require approval or filing. Higher education institutions have the right, in accordance with the law, to contribute their scientific and technological achievements as capital to establish equity and determine equity proportions. Through mechanisms such as promoter agreements, investment agreements, or articles of association, institutions may clearly specify matters such as ownership of scientific and technological achievements, valuation, number of shares to be issued, and equity proportions. Furthermore, institutions shall designate their specialized departments to centrally manage the equity or equity proportions acquired through the contribution of technological achievements. Without altering the ownership of official scientific and technological achievements, the creators and participants of such achievements may, in accordance with institutional regulations, sign agreements with the institution to commercialize these achievements and enjoy corresponding rights and benefits. All proceeds from the transfer and commercialization of scientific and technological achievements by higher education institutions shall remain within the institutions, be incorporated into their budgets, and not be remitted to the state treasury. After rewarding and compensating personnel who have made significant contributions to the completion and commercialization of scientific and technological achievements, the remaining funds shall primarily be used for scientific research and technology transfer-related activities.

　　3. Establish and improve the working mechanism for the transfer and commercialization of scientific and technological achievements. Universities should strengthen their management, organization, and coordination of the transfer and commercialization of scientific and technological achievements by setting up a leading group for the transfer and commercialization of such achievements and establishing a collective decision-making system at the leadership level for major matters related to their transfer and commercialization. They should integrate the management of research outcomes, technology transfer, asset operation and management, and legal affairs, and set up a management platform for the transfer and commercialization of scientific and technological achievements. Furthermore, they should clearly define the management institutions and their respective functions for the transfer and commercialization of scientific and technological achievements, assign responsibility for tasks such as reporting on scientific and technological achievements, protecting intellectual property rights, and managing asset operations, and optimize and publicize the workflows for the transfer and commercialization of scientific and technological achievements.

　　Higher education institutions shall establish procedures and rules for the use and disposition of scientific and technological achievements in accordance with national regulations and the actual conditions of the institution. When transferring or commercializing scientific and technological achievements to enterprises or other organizations, prices may be determined through methods such as listing on technology trading markets or auctions, or alternatively through negotiated pricing. In cases involving negotiated pricing, the institution shall publicly disclose—via its website, office systems, notice boards, and other appropriate channels—basic information about the scientific and technological achievement, including its name and summary, as well as the proposed transaction price and the process used to determine that price. The duration of such public disclosure shall be no less than 15 days. Daily. Universities shall implement a public notice system within the campus for the use and disposal of scientific and technological achievements, while clearly defining and publicly announcing the procedures and methods for handling objections. For matters involving state secrets and national security, compliance with relevant national regulations is required.

　　In the process of transforming scientific and technological achievements, if the price is determined through methods such as listing on a technology trading market or auction, or if the price is agreed upon via a contract and publicly disclosed within the university in accordance with regulations, university leaders shall be exempt from any decision-making responsibility arising from subsequent changes in the value of the scientific and technological achievements, provided that they have fulfilled their duty of due diligence and have not sought any illegal gains.

　　4. Strengthen the capacity-building for the transfer and commercialization of scientific and technological achievements. Universities are encouraged to establish specialized institutions responsible for the transfer and commercialization of scientific and technological achievements—without increasing their staff numbers—or to entrust independent technology transfer service agencies with this task. Through various means such as training and market-based recruitment, a professional team of technology transfer managers should be cultivated. Leverage the agglomeration, radiation, and driving effects of university science parks, regional (specialized) research institutes, and industry organizations in the transfer and commercialization of achievements. Relying on these entities, build supporting service platforms for technology trading, investment and financing, and other related activities. Facilitate the alignment between technological development and market demand, as well as between scientific and technological achievements and venture capital, thereby establishing a market-oriented operational system for technology transfer and commercialization. Cultivate and develop national technology transfer institutions characterized by flexible operating mechanisms, a concentration of professional talent, and outstanding service capabilities. Universities should make full use of technology achievement information platforms established by governments at all levels to enhance the promotion and exhibition of their achievements. Researchers are encouraged to engage in horizontal collaborations with enterprises, offering technology development, technical consulting, and technical services, and to jointly implement technology transfer and commercialization initiatives with enterprises.

　　V. Improve the income distribution policy oriented toward enhancing the value of knowledge. Higher education institutions shall, in accordance with national regulations and their own specific circumstances, formulate measures for rewarding and distributing revenues from the transfer and commercialization of scientific and technological achievements, and make these measures publicly available within the institution. When developing such measures for rewarding and distributing revenues from the transfer and commercialization of scientific and technological achievements, institutions must fully solicit the opinions of their scientific and technological personnel and take into account the interests of all parties involved in the commercialization of scientific and technological achievements, including the institution itself, departments, creators of the achievements, and specialized institutions for technology transfer and commercialization.

　　When universities award incentives to those who have completed official scientific and technological achievements and to other personnel who have made significant contributions to the commercialization of such achievements in accordance with the law, the following provisions shall apply: For official scientific and technological achievements that are commercialized through technology transfer or licensing, no less than 50% of the net income derived from the technology transfer or licensing shall be allocated. The proportion shall be used for rewards; in cases where scientific and technological achievements are contributed as capital investment for commercialization, no less than 50% of the shares or equity stake obtained from such capital contribution shall be allocated for this purpose. The proportion is allocated for rewards; personnel who have made major contributions to research and development and the commercialization of scientific and technological achievements shall receive a reward share accounting for no less than 50% of the total amount. After deducting rewards and remuneration for the aforementioned personnel, the proceeds from technology transfer and commercialization should primarily be used for scientific and technological research and development as well as related activities such as technology transfer and commercialization, and should also support the operation and development of technology transfer institutions.

　　Leaders holding full-time positions at universities and leaders of independently-legal entities affiliated with universities who are the primary contributors to scientific and technological achievements or have made significant contributions to the transfer and commercialization of such achievements may receive cash rewards in accordance with the university’s established guidelines for rewarding and distributing benefits from achievement transfer and commercialization. In principle, equity incentives shall not be granted. Other scientific and technological personnel holding leadership positions who are the primary contributors to scientific and technological achievements or have made significant contributions to their transfer and commercialization may receive rewards and remuneration—including cash, shares, or equity proportions—in accordance with the university’s established guidelines for rewarding and distributing benefits from achievement transformation. A system of public disclosure and reporting shall be implemented for the distribution of benefits from the commercialization of scientific and technological achievements among scientific and technological personnel holding leadership positions, clearly specifying their contributions during the completion of the achievement or its commercialization process, as well as the proposed rewards and their respective share percentages.

　　Technology personnel at universities engaging in horizontal collaborative activities—such as technology development, technical consulting, technical services, and technical training—targeted at enterprises represent an important mechanism for the commercialization of university-based scientific and technological achievements. Such activities should be managed in accordance with the Contract Law and the Law on the Commercialization of Scientific and Technological Achievements. Universities shall legally sign contracts or agreements with their collaborating entities, clearly stipulating matters such as division of tasks, allocation and use of funding, ownership of intellectual property rights, and distribution of benefits. Expenditures shall be made in compliance with the terms of the contract or agreement. Net income generated from these projects may be distributed to the scientific and technological personnel who have completed the projects, according to the school’s established regulations on rewards and benefit-sharing for the transfer and commercialization of scientific and technological achievements. Scientific and technological personnel undertaking horizontal research projects shall be treated equally with those undertaking government-sponsored science and technology programs in performance evaluations.

　　Expenditures on rewards and remuneration for the transfer and commercialization of scientific and technological achievements shall be included in the unit’s total annual payroll, are not subject to the unit’s annual payroll ceiling, and are not factored into the base figure for the unit’s total annual payroll.

　　6. Improve the personnel management system to facilitate the transfer and commercialization of scientific and technological achievements. On the premise that university scientific and technological personnel fulfill their job responsibilities and complete their primary duties, with the approval of the university, they may take on part-time positions in enterprises to engage in the commercialization of scientific and technological achievements, or they may leave their posts to start their own businesses while retaining their employment status for a period not exceeding three years. During the period of leaving their posts to start a business, the scientific and technological personnel’s participation in national science and technology programs and funded projects shall, in principle, not be suspended; if suspension is indeed necessary, the relevant administrative procedures must be followed accordingly. Universities should establish and improve systems governing on-the-job part-time work, off-post entrepreneurship, and return-to-post employment for scientific and technological personnel. These systems should specify the duration and remuneration methods for on-the-job part-time work, the rights and obligations during and after the off-post entrepreneurial period, as well as the conditions for returning to post. The management of part-time work by scientific and technological personnel holding leadership positions shall follow the relevant central regulations. Universities are encouraged to set up dedicated positions for the commercialization of scientific and technological achievements and establish corresponding evaluation and appointment systems. Universities are also encouraged to create a certain proportion of flexible positions, hiring entrepreneurs and enterprise-based scientific and technological professionals with practical innovation experience to take on part-time teaching and research roles. The Ministry of Education will organize universities to carry out pilot programs requiring enterprise work experience as a prerequisite for newly appointed engineering faculty members, and will intensify exchanges between universities and enterprises for professional teachers at applied undergraduate institutions and higher vocational colleges.

　　7. Support student innovation and entrepreneurship. Explore the establishment of a talent-development mechanism oriented toward innovation and entrepreneurship, and refine the collaborative education model that integrates industry, academia, research, and application. Support universities in partnering with enterprises and research institutes to set up teaching and research bases for student internships, training programs, and graduate research practice, thereby enhancing students’ practical capabilities in innovation and entrepreneurship. Promote national university science parks to provide students with accessible venues, information networks, and business and legal services for innovation and entrepreneurship. Establish micro-innovation labs and innovation-and-entrepreneurship clubs, and develop new incubation models such as crowdsourcing, crowd-funding, and crowd-support spaces. Encourage national university science parks to organize entrepreneurs with practical entrepreneurial experience, university scientific and technological personnel, and angel investors to carry out volunteer activities, offering students entrepreneurial guidance and technical development collaboration assistance. Compile successful case studies of innovation and entrepreneurship by university faculty and students as supplementary teaching materials for innovation and entrepreneurship education at universities. Strengthen the development of disciplines and specialties related to intellectual property rights, and provide students with education and training on relevant laws and regulations concerning intellectual property protection. Encourage universities to grant students licenses to use scientific and technological achievements through non-monetary patent licensing, and guide students to participate in the transfer and commercialization of these achievements.

　　8. Promote the open sharing of scientific research facilities and instruments. Encourage universities to join forces with enterprises, research and development institutions, and other organizations to establish joint research and development platforms, technology transfer agencies, or technological innovation alliances, working collaboratively on research and development, application and promotion of research outcomes, as well as standards research and formulation. Support universities in jointly building laboratories and large-scale instrument-sharing platforms with local governments and enterprises, and accelerate the opening and sharing of university research facilities and instruments to external users—including other universities, research institutes, enterprises, and social R&D organizations—while ensuring that these facilities continue to meet the basic teaching and research needs of the university itself. Various R&D platforms established by universities—such as national key laboratories, national engineering laboratories, national engineering (technology) research centers, large-scale scientific instrument centers, and analytical testing centers—should, in accordance with their functional positioning, establish effective mechanisms for opening up to enterprises, especially small and medium-sized ones, and intensify efforts to open them up to the broader society, thereby providing service support for the transfer and commercialization of scientific and technological achievements. For scientific research facilities and instruments that are opened for a fee, strictly comply with relevant national regulations on industrial and commercial administration and price management; all revenues and expenditures shall be incorporated into the university’s unified financial management.

　　9. Establish an annual reporting system and a performance evaluation mechanism for the transfer and commercialization of scientific and technological achievements. In accordance with the requirements of the national annual reporting system for scientific and technological achievements, universities shall, on a regular basis and in the prescribed format, submit to their competent authorities reports on the licensing, transfer, valuation-based investment of scientific and technological achievements, as well as on the progress of industry-academia-research cooperation, the performance and rewards related to the transfer and commercialization of scientific and technological achievements. They shall also summarize the overall achievements made throughout the year in the transfer and commercialization of scientific and technological achievements, as well as the challenges encountered. Universities shall establish a performance evaluation mechanism for the transfer and commercialization of scientific and technological achievements, and reward institutions and individuals that have demonstrated outstanding performance in this area. The competent authorities of universities shall, based on the annual reports submitted by universities on the transfer and commercialization of scientific and technological achievements, evaluate the performance of universities in this regard and use the evaluation results as one of the key bases for providing support to these universities. The performance of universities in the transfer and commercialization of scientific and technological achievements shall be incorporated into the assessment and evaluation system for building world-class universities and first-class disciplines.

　　10. Strengthen leadership effectively and ensure careful organization and implementation. All provincial-level education and science & technology authorities, as well as universities, must earnestly study and implement the profound implications of the principle that “innovation is the primary driving force behind development.” They should align their thinking and actions with the major strategic plans laid down by the Party Central Committee and the State Council, and, in accordance with the requirements of this guideline and their own specific circumstances, adopt practical and effective measures to accelerate the transfer and commercialization of scientific and technological achievements. It is essential to effectively guard against moral risks, integrity risks, and legal risks; strengthen supervision and inspection of the work related to the transfer and commercialization of scientific and technological achievements; hold strictly accountable those who fail to act or act improperly; and rigorously investigate and punish, in accordance with laws and regulations, any violations involving the exploitation of such opportunities for personal gain or the illicit transfer of benefits. The Ministry of Education will organize and implement an action plan to promote the transfer and commercialization of scientific and technological achievements from universities, guiding universities to further improve their institutional mechanisms for technology transfer and commercialization, thereby providing robust scientific and technological support and intellectual backing for economic and social development.

　　These Opinions shall take effect from the date of their promulgation. Any issues encountered during implementation should be promptly reported to the Department of Science and Technology of the Ministry of Education and the Department of Innovation and Development of the Ministry of Science and Technology. If any previous regulations are inconsistent with these Opinions, these Opinions shall prevail.

                                    Ministry of Education, Ministry of Science and Technology
　                                2016 August of the year March 3