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The Innovation of S&T System and the Development of the Computer Industry in China

Zhong Xiweixiweizhong2002@yahoo.com.cn23-Feb-2006

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Main contents

The innovation of the S&T system in ChinaAn overview of URI-industry linkage in ChinaThe development of China´s computer industryURI-industry linkage in China´s computer industry

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Major Questions Concerned

How has the URI-industry linkage been motivatedWhat is the situation of the URI-linkage in ChinaWhat roles played by URIs and government in the computer industry

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The innovation of the S&T system in China

The S&T reform of ChinaThe solution of the CCCP on the

reform of the S&T system (1985-1992)

Endorsement of URI-affiliated enterprises by State Council (1992-1999)

Transformation of RIs(1999-)

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The effects of the S&T reform

Enhanced R&D activities

Expanded innovative capacity

Strengthened URI-industry linkage

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An overview of URI-industry linkage in China

Technology service ContractJoint research projectPatent licensingScience parksURI-affiliated enterprises

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*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 with3 models of university-affiliated enterprises in ChinaThe performance of university-affiliated enterprises

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

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

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Engineering universities and top comprehensive universities have advantages

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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

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The development of China´s computer industry

PC industryGrowth of PC Production (thousand units)

0

5000

10000

15000

20000

25000

1990 1996 1998 2000 2002

Producti on 2三维柱形图 3三维柱形图

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Software industry

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URI-industry linkage in China´s computer industry

Government policies and programs

National High Technology Research and Development Program or “863”program

Torch programFive-year plans

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Origins of the computer industrySpin-offs from the government

research institutes, LenovoUniversity-affiliated enterprises,

FounderGreenfield startups by university

staff or graduates, StoneSpinoffs from state run firm, Great

Wall

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The model of URI-industry linkage URI run enterprises Spin-offs Strategic alliance alliances, i.e. Technical

service contracts, science parks, etc.

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CAS and its Spin-offsCAS, 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

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Universities and their affiliated enterprises

UREs in the Chinese Top-100 S&T Firms (2003)

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Founder group: key technology results of government-led project, pictographic language electronic publishing system

Jade Bird Corporation: “Jade Bird Computer Aided Software Engineering”

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Conclusion

How has the URI-industry linkage been motivated ?

The pull factor-lack of industrial R&D capability

The push factor-government policy orientation

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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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