Notice from the Ministry of Science and Technology on Issuing the Guiding Opinions on Promoting the Development of New R&D Institutions

Guiding Opinions on Promoting the Development of New R&D Institutions

To deepen the implementation of the innovation driven development strategy, promote the healthy and orderly development of new research and development institutions, and enhance the overall efficiency of the national innovation system, the following opinions are proposed.

1、 New R&D institutions are independent legal entities that focus on the needs of technological innovation, mainly engaged in scientific research, technological innovation, and R&D services. They have diversified investment entities, modern management systems, market-oriented operating mechanisms, and flexible employment mechanisms. They can be registered as technology related private non enterprise units (social service institutions), public institutions, and enterprises in accordance with the law.

2、 To promote the development of new research and development institutions, we need to highlight institutional and mechanism innovation, strengthen policy guidance and guarantees, focus on both incentives and constraints, and mobilize participation from all sectors of society. By developing new research and development institutions, further optimizing the layout of scientific research forces, strengthening industrial technology supply, promoting the transfer and transformation of scientific and technological achievements, and promoting the deep integration of scientific and technological innovation and economic and social development.

3、 Developing new research and development institutions, adhering to the principle of "whoever holds, who is responsible, whoever establishes, who revokes". The organizing unit (business supervisory unit, investor) should provide guarantees for the management and operation of new R&D institutions, R&D innovation, guide new R&D institutions to focus on scientific research, technological innovation, and R&D services, avoid functional positioning generalization, and prevent expansion into other fields.

4、 New research and development institutions should generally meet the following conditions.

（1） Having independent legal personality and a sound internal control system.

（2） Mainly engaged in basic research, applied basic research, research and development of common key technologies in industries, transfer and transformation of scientific and technological achievements, as well as research and development services.

（3） Having the necessary conditions and facilities for conducting research and development, experiments, services, etc.

The (IV) has a relatively reasonable and stable structure, strong research and development capabilities of the talent team.

The (V) has a relatively stable source of income, which mainly includes the investment of investors, technology development, technology transfer, technical services, technical consulting income, government purchase service income and funds obtained from undertaking scientific research projects.

In principle, a new type of R & D institution established 5. diversified investment shall implement the decision-making system of the board of directors and the board of directors (hereinafter referred to as the "board of directors") and the responsibility system of the president, director, and general manager (hereinafter referred to as the "director of the institute"). Laws and regulations and the investor agreement formulate articles of association, and manage and operate in accordance with the articles of association.

The articles of association of the (I) shall clarify the responsibilities, composition and generation mechanism of the board of directors, the generation and qualifications of the chairman and directors, the main sources of funds and business scope, the management of main business income and the distribution mechanism of resource income supported by the government.

In principle, the members of the (II) Council shall include investors, industry, industry experts and representatives of the institution. The board of directors is responsible for selecting the director of the hospital, formulating major matters such as amending the articles of association, examining and revising the development plan, annual work plan, financial budget and final accounts, salary distribution, and so on.

The legal representative of the (III) is generally held by the director of the hospital. The director of the institute is fully responsible for scientific research business and daily management, promotes internal control management and supervision, implements the resolutions of the board of directors, and is responsible to the board of directors.

(IV) the establishment of advisory committees to consult on institutional development strategies, major scientific and technological issues, scientific integrity and research ethics.

6. new R & D institutions should comprehensively strengthen party building. According to the "Articles of the Communist Party of China", establish party organizations, give full play to the role of party organizations as a fighting fortress in new research and development institutions, strengthen political guidance, and effectively ensure that the party's leadership is implemented in place.

We will 7. promote the establishment of a scientific R & D organization system and internal control system in new R & D institutions, and strengthen the construction of scientific research integrity and ethics. According to the actual needs of scientific research, technological innovation and R & D services, new R & D institutions independently determine R & D topics, dynamically set up and adjust R & D units, flexibly allocate scientific research personnel, organize R & D teams, and deploy scientific research equipment.

8. new R & D institutions should adopt market-oriented employment mechanism and salary system, give full play to the decisive role of market mechanism in the allocation of innovation resources, independently recruit personnel from the public, reasonably determine the wage level of employees according to the market-oriented salary, and establish an income distribution mechanism matching the innovation ability and innovation performance. The personnel of universities and scientific research institutions that carry out technology research and development and services part-time in new research and development institutions by means of project cooperation shall be managed in accordance with the contract signed by both parties.

9. new R & D institutions should establish a classification evaluation system. Focusing on scientific research, technological innovation and R & D services, scientific and reasonable evaluation indicators are set, the quality and contribution of innovation are highlighted, and the role of user evaluation is emphasized.

The 10. encourages new research and development institutions to implement an information disclosure system and disclose major issues and annual reports to the public through open channels.

The following policies and measures may be applied to qualified new research and development institutions.

(I) in accordance with the requirements to apply for major national science and technology projects, national key research and development plans, the National Natural Science Foundation and other government science and technology projects, science and technology innovation bases and talent plans.

(II) organize or participate in the evaluation of professional titles in accordance with the provisions.

In accordance with the "the People's Republic of China Law on Promoting the Transformation of Scientific and Technological Achievements" and other provisions, the (III) encourages scientific and technological personnel to carry out the transformation of scientific and technological achievements through equity sales, equity awards, stock options, project income dividends, and job dividends.

(IV) combine the actual needs of industrial development, build industrial technology innovation strategic alliances, explore long-term and stable industry-university-research integration mechanisms, organize industrial technology research and development innovation, and formulate industry technical standards.

(V) actively participate in international science and technology and talent exchanges and cooperation. Build a national international scientific and technological cooperation base and a national demonstration base for attracting talents; develop foreign human resources, absorb, gather, and cultivate world-class high-level innovative talents; cooperate with well-known overseas universities, scientific research institutions, multinational companies, etc. to carry out research and development, and establish research and development, Science and technology service and other institutions.

12. Encourage the establishment of new research and development institutions in the nature of science and technology private non-enterprise units (social service institutions). Science and technology private non-enterprise units shall be registered and managed in accordance with the law, and the profits from operation shall be mainly used for institutional management and operation, construction development, R & D and innovation, and the investors shall not pay dividends. Eligible technology private non-enterprise units enjoy tax incentives in accordance with the "the People's Republic of China Enterprise Income Tax Law", "the People's Republic of China Enterprise Income Tax Law Implementation Regulations" and non-profit organization corporate income tax, personal income tax on the transformation of scientific and technological achievements, and scientific and technological innovation import taxes.

13. New-type enterprise research and development institutions shall be registered and managed in accordance with the Regulations on the Registration and Administration of the People's Republic of China Companies. Encourage enterprises to new research and development institutions operating profits do not pay dividends, mainly for the management and operation of institutions, construction development and research and development innovation. In accordance with the Notice of the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Deduction Policy for Research and Development Expenses (No. 119 [2015] of the Ministry of Finance), new R & D institutions of the enterprise category enjoy the pre-tax deduction policy. In accordance with the Measures for the Administration of the Identification of High-tech Enterprises (No. 32, 2016), new R & D institutions of the enterprise category may apply for the identification of high-tech enterprises and enjoy corresponding tax incentives.

14. Local governments may, in accordance with the needs of regional innovation and development, comprehensively adopt the following policy measures to support the construction and development of new R & D institutions.

(I) provide support in the construction of infrastructure, the purchase of scientific research equipment, supporting services for talent housing, and operating funds, and promote the orderly construction and operation of new R & D institutions.

The (II) adopts support methods such as innovation vouchers to promote enterprises to purchase R & D innovation services from new R & D institutions.

(III) organize performance evaluation and give corresponding support to new R & D institutions according to the evaluation results.

15. Encourage local governments to support the construction and operation of new research and development institutions through special funds for the central government to guide local science and technology development. Encourage the National Guiding Fund for the Transformation of Scientific and Technological Achievements, and support new research and development institutions to transfer and utilize scientific and technological achievements formed by financial funds.

16. The Ministry of Science and Technology organizes the follow-up evaluation of new R & D institutions, builds a database of new R & D institutions, and publishes annual reports of new R & D institutions. New R & D institutions will be included in the scope of implementation of the innovation survey and statistical survey system, and new R & D institutions of enterprises below the scale will be gradually promoted to be included in the scope of national statistics. Local science and technology administrative departments are responsible for coordinating and promoting the construction and development of new R & D institutions in the region, carrying out monitoring and evaluation, and making dynamic adjustments.

17. Establish a new supervision and accountability mechanism for R & D institutions. New R & D institutions that violate the management regulations of science and technology plans and funds, and violate the ethics of scientific research, style of study, and integrity of scientific research shall be held accountable in accordance with laws and regulations.

18. Local governments can refer to this opinion, based on reality, highlight characteristics, and study and formulate policies and measures to promote the development of new R & D institutions to carry out first trials.

Information source: Ministry of Science and Technology