1. Cover Chinese Universities’ Commercialzation and Industrialization of Achievements in Scientific Research CHEN Jun Nanjing University PRC 2004-7-19

2. Major Contents 1.Situation of Science & Technology Industry in Chinese universities 2.Problems in the Commercialization Process 3.Development Orientation of S&T Industry in Chinese universities 4.Living Examples of University Science Park

3. Situation of S&T Industry in Chinese Universities In recent years, China’s higher education has experienced remarkable changes with its rapid development in S&T Industry, which can be witnessed from the following aspects:

4. Situation of S&T Industry in Chinese Universities Reinforced Strength in Chinese Universities’ Scientific Research Reinforced Strength in Chinese Universities’ Scientific Research  296,000 people are engaged in S&T activities in universities ， accounting for 22% of nationwide S&T forces  Research Papers published by them accounts for 70% of the total in China

5. Situation of S&T Industry in Chinese Universities  464 academicians of CAS and CAE work for universities, one third of the total in China;  103 State Key Laboratories based on universities, occupying 75% of the total;  21.96 billion research funds obtained by universities in 2002, 25% increase compared to 2001.

6. Situation of S&T Industry in Chinese Universities  In 2003, universities got 16 National Award for Natural Sciences, 11 National Award for Technical Invention and 62 National Award for Scientific & Technological Advance, accounting for 83%, 79% and 40% of the total respectively.  The universities rapidly grow to be the main force of scientific research in China.

7. Situation of S&T Industry in Chinese Universities Enhanced Commercialization of Universities’ Achievements in Scientific Research Enhanced Commercialization of Universities’ Achievements in Scientific Research  In 2002, Chinese universities applied for 6778 patents  2251 patents authorized  5683 transferring contracts signed

8. Situation of S&T Industry in Chinese Universities  44 University Science Parks constructed, attracting social investment of 29.7 billion yuan;  5500 enterprises entered the Science Park, 920 outgrown including 29 listed enterprises;  100,000 people hired in the Park, including 1300 talents returned from abroad after completing overseas education;  University Science Park has become a major stage for the commercialization of universities’ achievements in scientific research.

9. Situation of S&T Industry in Chinese Universities Increased Industries in Universities Increased Industries in Universities  By 2002, 2216 enterprises in universities established,  Sales income reached 53.9 billion yuan with a total profit of 2.537 billion yuan. Taxes paid to the university was 761 million yuan.

10. Situation of S&T Industry in Chinese Universities  48 universities with sales income exceeding 100 million yuan ， Peking University ranks the first with 14.93 billion yuan, followed by Tsinghua University with 10.281 billion yuan.  40 university-owned enterprises listed in Shenzhen, Shanghai and Hong Kong, receiving great social concern.

11. Problems in the Commercialization There are still lots of problems in the commercialization. There are still lots of problems in the commercialization. More achievements appraised, Less patents approved, Difficult commercialization More achievements appraised, Less patents approved, Difficult commercialization About 10,000 achievements appraised by government each year, only 10-15% of them are successfully commercialized. About 10,000 achievements appraised by government each year, only 10-15% of them are successfully commercialized.

12. Problems in the Commercialization Lack of Pioneering Funds Lack of Pioneering Funds  It is hard for companies to raise funds for incubation, and have to rely on the government and the university. Lack of Pioneering Consciousness Lack of Pioneering Consciousness  Due to the influence of campus culture, university staff usually has no spirit of pioneering and taking risk, and attaches no importance to the exploration, cultivation and commercialization of scientific achievements.

13. Problems in the Commercialization Lack of talents who master both technology and management skills Lack of talents who master both technology and management skills  Almost 80% of university-owned enterprises are controlled or exclusively invested by universities. Most of managers used to be staff of the university, having no experience of running an enterprise.

14. The Development Orientation of Scientific Industry in Chinese Universities According to related documents of the Ministry of Education, initiating scientific industry, commercializing high-tech accomplishments will be an improtant task for universities, helping to realize three major functions According to related documents of the Ministry of Education, initiating scientific industry, commercializing high-tech accomplishments will be an improtant task for universities, helping to realize three major functions personnel-training personnel-training scientific research scientific research social service social service

15. The Development Orientation of Scientific Industry in Chinese Universities Emphasis placed on the development of the University Science Park ， hoping to turn it into Emphasis placed on the development of the University Science Park ， hoping to turn it into an incubator for high-tech enterprises, an incubator for high-tech enterprises, a training base for people with pioneering spirit a training base for people with pioneering spirit a kind of bridge connecting universities and society. a kind of bridge connecting universities and society.

16. The Development Orientation of Scientific Industry in Chinese Universities Through the University Science Park, commercializing of achievements in scientific research will eventually take a “Three-Step” model: achievements produced in university labs; technology incubated to be scientific enterprises in University Science Park; Through the University Science Park, commercializing of achievements in scientific research will eventually take a “Three-Step” model: achievements produced in university labs; technology incubated to be scientific enterprises in University Science Park; enterprises get further development through operation of capital in Economic and Technological Development Zone. enterprises get further development through operation of capital in Economic and Technological Development Zone.

17. Introduction to Living Examples of University Science Park There are 44 University Science Parks approved, some run exclusively by one university while others run jointly by several universities. There are 44 University Science Parks approved, some run exclusively by one university while others run jointly by several universities.  One-University Science Park: Tsinghua Science Park Tsinghua Science Park Shanghai Jiaotong University Science Park Shanghai Jiaotong University Science Park  Multy-University Science Park: State Science Park of Universities in Yunnan Province State Science Park of Universities in Yunnan Province

18. Introduction to Living Examples of University Science Park

22. State Science Park of Nanjing University and Colleges in Gulou District was authorized by Ministry of Science and Technology and Ministry of Education in 2001, jointly managed by Nanjing University and local government, jointly sponsored by other 8 universities in the Gulou District. State Science Park of Nanjing University and Colleges in Gulou District was authorized by Ministry of Science and Technology and Ministry of Education in 2001, jointly managed by Nanjing University and local government, jointly sponsored by other 8 universities in the Gulou District.

23. Introduction to Living Examples of University Science Park The Sponsored Universities and Colleges: The Sponsored Universities and Colleges: Nanjing University of Industry Hohai University Nanjing University of Post and Telecommunication Chinese University of Pharmaceutics Nanjing University of Chinese Medicine and Pharmaceutics Nanjing Normal University Nanjing University of Medical Sciences Nanjing Engineering College

24. Introduction to Living Examples of University Science Park Reasons for Cooperation among 9 Universities Reasons for Cooperation among 9 Universities  Historically, originated from the same university (The Central University of China), in 1952, those universities were separated because of higher education restructuring.  Geographically located in the same district, students can visit each other either on foot or by bicycle.

25. Introduction to Living Examples of University Science Park  Scientifically complementing each other, Nanjing University is strong in science and Arts; the others are strong in Engineering and Medicine.  Being politically organized by the government, there is a special Administrative Committee to look after the Science Park with members from both government and universities.

26. Introduction to Living Examples of University Science Park Functions of Government ： Functions of Government ：  Providing buildings for incubation of universities’ scientific projects;  Providing full-time service staff for the park in management;  Providing funds for the park in operation;  Applying special policies to enterprises within the park for the deduction & exemptions of local taxes.

27. Introduction to Living Examples of University Science Park Functions of University: Functions of University:  Opening resources like library and labs to the park;  Encouraging faculty members to be a shareholder of those enterprises by investing technology;  Encourages them to set up companies in the park with their job retained and salary suspended;  Setting up special funds for initiating faculty members’ technological innovation.

28. Introduction to Living Examples of University Science Park Management and Service of Science Park Management and Service of Science Park “Service Center for Scientific Pioneering” established by the Science Park is to provide a comprehensive service to enterprises within the park. “Service Center for Scientific Pioneering” established by the Science Park is to provide a comprehensive service to enterprises within the park.  Registration Service: providing a coordinated service like commercial and industrial registration, tax registration, etc ．

29. Introduction to Living Examples of University Science Park  Intermediary Service: providing a professional service of administration, finance, law, investment, assessment and consultancy.  Logistics Service: providing logistics service, network servie and various information services.

30. Introduction to Living Examples of University Science Park Development: Development:  By the end of 2003, 196 companies have entered the park; 5505 staff have been employed by them; business income has reached 1.31 billion; a profit of 130 million has been obtained.  The Science Park successfully passed the evaluation by MST and MOE

31. Conclusion: Conclusion:  University Science Park is an important and effective platform in promoting commercialization of universities’ achievements in scientific research;  Support from government is a significant element in the park’s development;  Development of universities must be integrated with the local economy.

32. Thank You Very Much!