Opinion: How to Turn China’s Enviable Number of Patents Into Marketable Innovations

China's successful global economic competitiveness is closely tied to its command of technological innovation. The Central Committee for Deepening Overall Reform recently held its fifth meeting to deliberate on creating a conducive environment for globally competitive science and innovation, addressing critical issues, including commercializing university patents [para. 1].

Research outcomes alone do not naturally transition into economic benefits. The "2022 China Patent Survey Report" by the National Intellectual Property Administration highlights that the commercialization rates for patents are 48.1% for corporate patents, 13.3% for research institutions, and a mere 3.9% for universities. This indicates that many valuable scientific advancements remain unutilized. Therefore, identifying and removing the institutional barriers obstructing the commercialization of university research is crucial to leverage science and technology for high-quality development [para. 2].

The challenge of commercializing research is not new. The 1996 Law on Promoting the Transformation of Scientific and Technological Achievements by the Standing Committee of the National People's Congress was an initial step. Despite increased research funding and improvements in the quantity and quality of research outcomes in recent years, conversion into practical uses has stagnated. This stagnation stems from outdated institutional mechanisms and inadequate conditions for industrializing university patents. It's a complex system involving educational authorities, universities, researchers, and enterprises, compounded by issues related to ownership, usage, disposal, and profits. These systemic challenges manifest at the researcher level as fear of loss of state assets, unwillingness due to cumbersome processes, lack of business skills, and challenges in transitioning preliminary research to market-ready products [para. 3].

Recently, reforms aimed at accelerating the commercialization of university research outcomes have gained momentum. Key milestones include the 2014 notice by the Ministry of Finance allowing central-level institutions to retain income from technological advancements. The 2020 pilot program granted researchers long-term rights to their scientific results. As of October 2023, the State Council launched a special action plan emphasizing the revitalization of existing university patents, promoting the commercialization of valuable patents. The National Intellectual Property Administration's 2024 work plan further bolstered these efforts through detailed inventories and evaluations of existing patents [para. 4].

The immediate task is to implement these reforms thoroughly. The reform pilot at Shanghai Jiao Tong University serves as a salient example. It grants full ownership rights to research teams, coupled with proposals from academicians to address transformation pain points. Consequently, the National Development and Reform Commission has supported specialized reform pilots, providing detailed guidelines to alleviate researchers' concerns and maximize the potential for efficient commercialization of scientific results [para. 5].

However, bridging the gap between research and industry requires a tightly integrated system of upstream and downstream processes. Despite China's leading number of academic papers and international patent applications, many lack industrial value. The healthy development of venture capital is crucial for facilitating the transformation of research into market-ready products. The State Council has reiterated the importance of creating a supportive environment for venture capital [para. 6].

While challenges remain, potential solutions for the transformation of scientific outcomes are emerging. Ultimately, realizing the industrial value of research results in the market is essential, and fostering "patient capital" to support this transformation is another critical challenge to be addressed [para. 7].