1. The text of this watershed decision of March 1985 entitled Zhonggong Zhongyang guanyu kexue jishu tizhe gaige de jueding (Decision of the Central Committee of the Communist Party of China on the Reform of the Science and Technology Management System), was published in the Renmin ribao (People' Daily), 20 March 1985, p. 1. It has also been reprinted as an “important document” in Zhongguo kexue jishu zhengce zhinan (Guidelines on China' Science and Technology Policy) (Beijing: Kexue jishu wenxian chubanshe, 1986). For an overview and evaluation of this policy document, see White Paper on Science and Technology. Summary and Comments by Erik Baark, Utlands Rapport Kina 8604 (Stockholm, Office of the Scientific and Technical Attaches, January 1987).

2. In addition to the “White Paper,” two recent general overviews in western languages are Richard Conroy, “Science and technology policy in China,” in Joseph Cheng (ed.), China in the 1980s (Hong Kong, forthcoming), and Tony Saich, China' Science Policy for the 80s (Cardiff: University of Wales Press, 1986).

3. In Chinese terminology, research units which are not organized as part of enterprises are called “independent” research institutes. In fact, such institutes are generally subordinate to one of the five major networks for research and development in China: the Chinese Academy of Sciences, research units belonging to ministries, defence research units, local research institutes, and institutions of higher education.

4. This document was disseminated for internal use after it has been approved by the State Council. An unofficial translation appeared as “Outline report on policy concerning the development of our national science and technology,” in Issues and Studies, Vol. XVIII, No. 5 (May 1982), pp. 84–101. The original Chinese text has recently been published as an appendix in the “White Paper.”

5. Ibid. p. 87.

6. See Keyan, guanli (Research Management), No. 1 (1981), pp. 54–58.Google Scholar

7. The Economic Contract Law (Jingji Hetong Fa) went into effect on 1 July 1982. Contracts concerning scientific and technological co-operation merely constitute one type among 10 major types of contracts. Contracts have also been imporant in the economic reforms carried out in East European countries. See Michael Ellman, Socialist Planning (Cambridge: Cambridge University Press, 1979).

8. See Guoguang, Li and Qiongying, Fan, “Shixing youchang keyan hetongshi dashi suoqu” (“Practising research contracts with compensation is the general trend”), Renmin ribao, 13 December 1984, p. 3. Additional information on the organization of the contracts was provided by a Chinese delegation to the Royal Swedish Academy of Engineering Sciences, which presented a paper entitled “The management reform for research institutes in Beijing” (mimeo, Stockholm, 1984).Google Scholar

9. The distinction between “vertical” and “horizontal” types of contracts has been suggested by Dong Jiansheng in “Tuixing jishu jingji hetongzhi de tantao” (“A discussion of the implementation of the System of Technical Economic Contracts”) Keyan guanli, No. 2 (1983), pp. 37–42.

10. See “Jishu shichang de qiyuan he fazhan” (“The origin and development of technology markets”) by Jin Ke, Jishu jingji yu guanli yanjiu (Technological Economics and Management Research), No. 2(1985), pp. 57 and 45. Another report has dated the start of Shenyang technology markets to 1980, see “Impact of technology markets surveyed,” China Report: Science and Technology (JPRS-CST-86–010), pp. 20–22.

11. Ibid. E.g. the United Regional S&T Development Corporation of Southern China (Zhongnan Diqu Keji Lianhe Kaifa Zonggongsi) has planned to construct a technology trade house including several thousand square metres of exhibition and office space.

12. See “Guowuyan pizhun chengli quanguo jishu shichang xietiao xiaozu” (“The State Council approves of the establishment of a national technology market coordination group”), Jishu shichang bao (Technology Market Weekly), 2 July 1985, p. 1. Also “Quanguo jishu shichang xietiao zhiling xiaozu zhaokai di er ci huiyi” (“The National Technology Market Co-ordination Leading Group convenes its second meeting”), Jishu shichang bao, 7 July 1985, p. 1.

13. Guo, Shuyuan, “Jiasu jishu chengguo shangpinhua dali kaituo jishu shichang" (“Accelerate the commercialization of technological results and vigorously open up the technology market”), Jishu shichang (Technology Market), 26 March 1985, pp. 1 and 7.Google Scholar

14. Zhongguo kexue jishu zhengce zhinan (Guidelines on China' Science and Technology Policy), p. 181.

15. Currently, three basic meanings have been assigned to the concept of “technology market”: (a) an abstract term designating all phenomena related to the commercial transfer of technology, e.g. the “international technology market”; (b) a limited range of commercialized arrangements employed in the transfer of know-how, including fairs, training services, mobility of talented people, etc.; and (c) an institution which undertakes to promote these arrangements, i.e. an intermediary organization and/or a showroom.

16. See Jingtao, Li and Aoqing, Yang, “Guangdong keji gongzuo zai kaifang he gaige zhong bu duan qianjin” (“Science and technology work in Guangzhong is continually advancing under liberation and reform”), Keji guanli yanjiu (Science and Technology Management Research), No. 2 (April 1986), pp. 1–6.Google Scholar

17. E.g., the Chinese technologies presented at the Second Barclay Technology Market Exhibition in Birmingham in 1985 received great interest from customers, and 13 agreements or letters of intent regarding these technologies were reportedly signed during the first four days of the exhibition. The technical rights for a new technology for production of citric acid developed by the Huadong Chemical Engineering Academy was apparently sold to units from both the United States, Great Britain and West Germany. See “China achieves success in world S&T markets,” China Report. Science and Technology (JPRS-CST-86–012), p. 16.

18. See “Technology export fair opens in Shenzhen,” China Report. Science and Technology (JPRS-CST-86-017), p. 28.

19. The Chinese Government has also empowered a new agency in Hong Kong to seek protection for the Chinese technologies sold abroad. See “Hong Kong firm to protect PRC inventions sold abroad,” China Report. Science and Technology (JPRS-CT-86–017), p. 6.

20. See “Technology group aims for boost to economy,” China Daily, Tuesday, 7 October 1986, p. 1.

21. See He, Jicheng, “Jishu shichang jingying he guanli de tantao” (“Discussion on the administration and management of technology markets”), Jishu jingji vu guanli yanjiu, No. 2 (1985), pp. 6–9.Google Scholar

22. Zhang, Guohui, “Jishu jiaoyu hetong ying jingguo jianzheng he gongzheng” (“Technology sales contracts should pass approval and notarization”), Jishu shichang bao, 7 January 1986, p. 3.Google Scholar

23. See the Technology Market Investigation Group of the General Office of the Tianjin Municipal Commission, “Guanyu tuidong wo shi jishu shichang shenru fazhan de diaocha” (“Concerning the investigation of the enhanced development of the promotion of a technology market in our city”), Kexuexue yu kexue jishu guanli. No. 3 (1986), pp. 32–34.

24. See the report “Faren shensheng de jishu pianju” (“A technology fraud which provides food for thought”), Jishu shichang bao, 20 August 1985, pp. 1 and 3.

25. Chen, Hongyu, “Jishu shangpin jiaoyi he jishu shichang guanli” (“The exchange of technological commodities and the management of the technology market”), Keji guanli yanjiu, No. 1 (1986), pp. 20–22.Google Scholar

26. One commentator has argued that the basic principle for the management of technology markets should be “vigorous but not chaotic, managed but not killed” (huo er bu luan, guan er bu si). See Li, Kuishan, “Jishu shichang ji qi guanli wenti” (“Problems of technological markets and their management”), Kexue, jingji, shehui (Science, Economy, Society). No. 4 (1985), pp. 267–69. The networks identified by the Investigation Group in Tianjin are operated by the Science and Technology Commission, the Economic Commission, the Commission for Foreign Economic Relations and Trade, and the Bureau of Defence Science and Technology Work; see the Technology Market Investigation Group of the General Office of the Tianjin Municipal Commission, “Guanyu tuidong wo shi jishu shichang shenru fazhan de diaocha” (“Concerning the investigation of the enhanced development of the promotion of a technology market in our city”), p. 33. Chen Hongyu argues that this may lead to the situation where “everybody manages, nobody manages” (jiajia dou guan, jiajia dou bu guan), and proposes to let the Science and Technology Commission assume overall responsibility. See Chen Hongyu, “Jishu shangpin jiaoyi he jishu shichang guanli,” p. 22.Google Scholar

27. See “Research institutes should have right to convey achievements,” China Report. Science and Technology JPRS-CST-86–005 (February 1986), p. 20.

28. See Renmin ribao, 20 March 1985, p. 1.

29. See the Technology Market Investigation Group of the General Office of the Tianjin Municipal Commission, loc. cit.

30. See Lu, Ping, “Guangdong jishu shichang fazhan de tedian he qushi” (“The features and trends of the development of technology markets in Guangdong”), Keji guanli yanjiu. No. 2 (1986), p. 30.Google Scholar

31. See, for instance, Zhou, Yunli, “Tan keji renyuan yeyu jianzhi de libi” (“A talk on the pros and cons of spare-time jobs by scientific and technical personnel”), Jishu shichang bao, 6 May 1986, p. 4.Google Scholar

32. Peng Yiduo from the Science and Technology Association of the Xiangxiang District in Hunan province argues that technology transfer fees are frequently unreasonable, as “people demand 1,000 yuan for blueprints that are mere duplicates of drawings from the 1950s.” See “Guanyu shichang wenti de taolun” (“A discussion on the problems of technology markets”), Keyan guanli, No. 1 (1986), p. 74. In contrast, a representative from the Beijing City Chemical Industry Research Institute has argued that the fee charged for the transfer of a technology for producing a fire prevention compound, 30,000 yuan, was only 5% of the profits earned by the enterprise which received the technology; see Yang, Xuejun, “Qianyi jishu zhuanrang zhong changjian wenti” (“A brief discussion of frequently encountered problems in technology transfer”), Jishu shichang bao, 4 March 1986, p. 3.Google Scholar

33. This is the point made by Yi, Bingyan in “Jishu zhuanyi zhongjiefei you shei chengdan?” (“Who should bear the cost of acting as intermediary in technology transfer?”), Jishu shichang bao, 3 June 1986, p. 1. In the opinion of this commentator, who is attached to the Science and Technology Commission of the Changde prefecture, Hunan province, a reasonable fee would amount to approximately 5–10% of the sum paid for the transfer of technology.Google Scholar

34. Xijiao, Zhong and Mengling, Li, “Shilun jishu shichang de fazhan qushi he fazhan zhanliie” (“A tentative discussion of the development trends and strategic development of technological markets”), Kexuexue yu kexue jishu guanli, No. 5 (1986), pp. 12-14, presents the argument that technology markets have been transformed from a “seller' market” to a “buyer's market.”Google Scholar

35. The survey is reported in Yuehua, Ge and Yuming, Li, “Weizenme yixie gongye qiye dui koumai xin jishu jijixing bu gao” (“Why is the enthusiasm of some enterprises towards buying new technology not high?”), Jishu shichang bao, 2 February 1986, pp. 1 and 2.Google Scholar

36. Ibid. p. 2. On top of the basic 55 per cent income tax on profits, many enterprises have to pay product tax, business tax, value-added tax, energy and transport taxes, and so on. In Tianjin the enterprises of the First Light Industry Bureau paid altogether 330 million yuan of the 400 million yuan earned in 1985 in taxes, and many units were left with a net profit of only 200 yuan per employee.

37. Ibid. p. 2. In Tianjin enterprises had applied for tax exemptions amounting to more than 100 million yuan. On account of the financial difficulties of the municipal government, however, it only approved of exemptions equivalent to 8 million yuan. Similarly, the prices assigned to new products still fail to reflect the cost of research and development.

38. For example, during an interview in October 1986 Li Minquan, director of Shanghai Electric Cable Research Institute, estimated current annual R&D investment for factories involved in production of electric cables to be 0.7 per cent of output value, as compared with at least 4–5% in the west.