Published by ChinaMNC · Dingxing

China’s New Push to Integrate Tech Innovation and Industrial Innovation: What Foreign Founders Should Know

A practical guide for foreign founders on China’s official opinion on deepening the integration of scientific and technological innovation with industrial innovation, covering enterprise-led R&D, technology transfer, financing, talent, and local pilot programs.

Overview for Foreign Founders

China’s central authorities have issued an opinion on advancing the deep integration of scientific and technological innovation with industrial innovation. For foreign founders registering or operating a company in China, the document signals how policy will prioritize enterprise-led innovation, faster commercialization, and coordinated support across finance, education, and talent. It is a policy framework rather than a set of specific incentives, so founders should treat it as directional guidance and verify implementing rules with local authorities.

Guiding Approach

The opinion sets a goal of developing new quality productive forces and building a modern industrial system. Its core focus is a collaborative innovation system in which enterprises play the leading role and other participants work together across industry, academia, and research. It calls for full-chain integration, broad coverage, and coordinated support, linking scientific strength to industrial and economic strength.

It also sets out working principles: systematically tracking new trends in the technology and industrial revolutions; aligning technology supply with demand by deploying innovation chains around industrial chains and industrial chains around innovation chains; strengthening enterprises’ central role in innovation and directing innovation resources toward them; and removing institutional barriers through reform.

Practical Takeaways by Area

1. Enterprise Participation in National Programs

National science and technology programs are to become more industry-oriented. Enterprise needs are to be collected on a regular basis, and experts from companies and venture capital institutions are to be given a reasonable share of roles in guideline drafting, project review, and acceptance. Companies can lead projects, with mechanisms such as open calls for solutions, “owner” systems, milestone management, and phased funding. Project acceptance will assess both technology and market performance, and R&D and industrialization goals will be evaluated together.

2. Turning Research into Products

For national science and technology projects with clear industrial application goals, enterprises will in principle lead implementation and commercialization. Universities and research institutes are encouraged to set up technology transfer offices or roles and to use licensing, assignment, and equity investment to speed application. Reforms will grant researchers rights to job-related scientific and technological achievements and allow separate asset management. Universities and research institutes may license achievements to small and medium-sized enterprises on a “use first, pay later” basis. A nationally integrated technology market and a professional technology manager workforce are also planned.

3. Application Scenarios

A demonstration program will promote new technologies, products, and scenarios. Local governments are encouraged to open application scenarios in government services, smart cities, and rural construction, and to publish supply and demand information for technologies and scenarios. Founders with applicable products may find local scenario-opening initiatives relevant.

4. Key Technologies and Emerging Industries

The opinion calls for decisive breakthroughs in core technologies in integrated circuits, industrial machine tools, high-end instruments, advanced materials, and biomanufacturing. It also promotes original and disruptive innovation to build strategic emerging industries in new energy, new materials, and aerospace, and to develop the low-altitude economy in a healthy and orderly way. In frontier fields such as quantum technology, biomanufacturing, hydrogen and fusion energy, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications, the document encourages exploring multiple technical routes, typical application scenarios, and viable business models to commercialize frontier technologies.

5. Upgrading Traditional Industries

Manufacturing upgrades and large-scale equipment renewal will continue, along with industrial internet development and the integration of the digital and real economies. The document also calls for agricultural technology progress and an “AI+” initiative to apply artificial intelligence across industries.

6. Strengthening Enterprise Innovation Capacity

Enterprises will have regular channels to participate in national science and technology and industrial development strategy, planning, and policy making. The National Natural Science Foundation is to pilot opening to private enterprises, and enterprise innovation joint funds will be expanded. State-owned enterprises are encouraged to establish R&D reserve funds with separate accounting, exemption from value-preservation assessments, and error tolerance. Technology-based SMEs are encouraged to increase R&D spending, with a higher additional deduction ratio for R&D expenses. Enterprises may lead the construction of science and technology innovation platforms. National major science and technology infrastructure, large research instruments, and national science data centers are to be opened to enterprises. Talent programs will increase support for enterprises, and enterprise postdoctoral stations will be strengthened.

7. Growing Technology Companies

Support covers high-tech enterprises, specialized and sophisticated “little giant” enterprises, and manufacturing single-champion enterprises. Startups will receive support through incubation and financing services. Large enterprises are encouraged to open R&D platforms, application scenarios, and supply chains to SMEs and to trial and first-use SME innovation products.

8. Collaboration Among Innovation Actors

Leading technology enterprises are encouraged to act as chain leaders and form innovation consortia. National laboratories, research institutes, and research universities are to deepen cooperation with leading enterprises and identify scientific questions from industrial needs. Enterprises may participate in university and research institute activities and personnel training, and may jointly build research institutions and set up research projects with other innovation actors.

9. Technology Finance

A technology finance system is to be built to match financing needs across a technology company’s life cycle. The national venture capital guidance fund will play a role. Government-funded and state-owned venture capital funds are to focus on early-stage, small, long-term, and hard-tech investments, with long-cycle assessment, differentiated regulation, and exit mechanisms. The “innovation points” system will be promoted to assess SME innovation capacity. A “technology board” in the bond market and a technology insurance policy system are also planned.

10. Talent

Education will be aligned with innovation and industrial needs, with a mechanism for adjusting academic disciplines involving science and industry departments. School-enterprise joint training, work-study rotation, and dual-mentor systems will be promoted. Policies will support researchers taking secondments, part-time roles, and leaving posts to start businesses. Enterprises may hire innovation talent as industry mentors or professors. Young talent and technology entrepreneurs will receive support.

11. Platforms, Market Access, and IP

Platforms will include national emerging industry innovation centers, industrial technology engineering centers, technology innovation centers, and manufacturing innovation centers. Proof-of-concept centers and pilot testing platforms will serve industrialization. Local new-type research institutions may develop in a regulated way. Market access pilots will be conducted in new business forms and fields, with “commitment-based entry” explored and “sandbox regulation” tested. Laws and regulations for frontier fields such as AI and biotechnology will be improved. IP protection will be strengthened, including trade secrets and new business forms, with benefit-sharing and risk-sharing mechanisms. Patent open licensing will be fully implemented, and standard-setting will be strengthened for national and international standards.

12. Incentives and Local Pilots

Tax incentives for scientific and technological innovation will be implemented. Due-diligence exemption mechanisms and negative lists will be explored for technology transfer and venture capital. State-owned enterprise assessment will be improved, with a higher proportion of joint R&D expenses with universities and research institutes treated as profit. Local governments are encouraged to pilot deep integration based on local advantages, with central-local coordination, cross-regional collaboration, and policy trials in high-tech zones and independent innovation demonstration zones. Innovation centers and qualified localities will run reform pilots.

What This Means in Practice

Foreign founders should note that the opinion emphasizes enterprise-led projects, industry participation in government programs, technology transfer from universities, access to national research facilities, and financing support for early-stage hard tech. The document does not create automatic entitlements. Implementation will depend on subsequent rules and local measures. Founders should monitor local pilot programs and confirm eligibility, procedures, and any sector-specific requirements with the relevant authorities.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.