For Jin Yijiang, a member of the school's computer department's research team that develops advanced Chinese character identity technology, the new policy means he could soon be expecting a pay rise through the sale or transfer of technology.

But analysts of science and technology (S&T) management are still adamant that further reforms, especially those concerning the ownership of research institutes, should be adopted to develop a comprehensive incentive system for science researchers.

"The move that permits research organs to have IPRs is not linked with the structural reform of research institutes," Xue Lan, deputy dean of Tsinghua University's School of Public Administration, told Business Weekly.

Xue's remarks came after the Ministry of Science and Technology and Ministry of Finance jointly declared last week that except for those projects concerning State security or significant national interests, institutes that develop State-sponsored research programs can independently reap the rewards of their research. They will be allowed to sell, invest in or transfer research achievements, or take stakes to form science-based companies.

The new measure replaces the current practice according to which IPRs of State-sponsored science research only belongs to the State.

Most of China's research institutes are State-owned, and a majority of the country's research programs are sponsored and invested in by the government. Thus, experts said that the drive to allow institutes to own the IPR of State-sponsored research would largely increase the role and independence of China's science research institutes.

In addition, the drive is aimed at encouraging researchers to devote more energy to inventions and to fasten the transformation process of research into actual production, said a spokesperson from the science ministry last week.

The S&T transaction in China has seen a rosy picture in recent years. Statistics show that 229,700 technical contracts valued at 78.3 billion yuan (US$9.5 billion) were signed in 2001, continuing the annual growth rate of more than 20 per cent since 1998.

Despite the boom, however, the transformation rate between S&T research and factual application remains as low as 10 per cent, much lower than developed countries that enjoy a rate of 60 per cent or higher. Major reasons for that are said to be that the current S&T administration system reduces incentives for research institutes and researchers.

The drive to allow research organs to have the IPRs of State-sponsored programs is common practice in the United States, which fuelled the information revolution in the 1980s, said Xue.

Xi Xiaolin, a senior researcher with the Chinese Academy of Engineering and a visiting professor from Carnegie Mellon in the United States, said that besides the government's direct investment, research institutes conducting State-sponsored projects have also devoted their own equipment and personnel during research processes.

"Therefore, it is reasonable for them to enjoy the IPRs, even if the major research investment comes from the State," said Xi during an interview with Business Weekly.

But China's S&T field still lacks strong incentive to individual researchers. Many experts have appealed for effective incentives for individual researchers to be linked with a variety of shareholding structures and option systems that offer payments for their research. Meanwhile, Xi suggested that a regular competitive system should be introduced for State-sponsorship for S&T programs, so that bigger institutes would not monopolize the benefits of IPRs.

The science ministry seems to have noticed the monopoly problem of some institutes. In a news release it said that the State reserved the right to supervise research institutes and to gain the benefits of such research.

Besides transferring the ownership of State-sponsored research programs to science institutes, the ministry has also promised to offer funding for institutes obtaining the right to apply for IPRs.

(China Daily June 10, 2002)