STI Global Forum Building Science, Technology, and Innovation Capacity for Sustainable Growth and Poverty Reduction Managing Technological Change and Transfer in China: The Case of the ERCs

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STI Global ForumBuilding Science, Technology,
and Innovation Capacity for Sustainable Growth
and Poverty ReductionManaging Technological
Change and Transfer in China The Case of the
ERCs

• Sergio C. Trindade
• SE2T International, Ltd
• strindade_at_alum.mit.edu
• The World Bank, CIDA, DFID, GRA, IADB, SIG,
  UNCTAD, and UNESCO
• Washington, DC
• 14 February 2007

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The ST Loops
Research to Add universal knowledge
Level of universal knowledge
New universal knowledge
Level of the economy
Research to add economic value
Innovation
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ERC is a misnomer

• China 5,000 research institutes, 10 million
  people
• Reward system based on scientific recognition
  awards
• Not financial return
• Too many scientific awards, too little innovation
• Agricultural reform income shift to rural areas
  sprouting the TVEs rural industrialization,
  ToT, negative environmental impacts
• TVEs became manufacturing platforms for the world
• Policy reforms corporate law, equity ownership,
  peoples mobility, IPR, standards and
  norms,conversion of military industries to
  civilian markets
• Less tha 100 state funding of state research
  institutes
• Role of Mme. Ma Dexiu at the State Planning
  Commission (now State Development and Planning
  Commission)
• Role of the World Bank (W. Vergara and L. Hale)

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ERC Objectives

• Support government technology policy and
  institutional reform
• Promotion of development/adaptation/
• adoption of clean, productivity enhancement
  technologies
• Acceleration of diffusion/adaptation of
  technology in China and abroad
• Enabling research institutes to become more
  market oriented technology companies, especially
  environmentally
• benign technologies
• Strengtheningpublic services, nrms and
  standards, information dissemination, and
  enforcement of technical regulations

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Basic Concept of ERC Technology Transfer
Corporation
Innovation in the domestic and foreign markets
Knowledge input
Knowledge packaging
University
ERC
New products services via industry
Research Institute
Industry domestic And foreign

• ERC incorporated separately from sponsor, as a
  shareholding LLC.
• ERC employees can be shareholders
• ERC can go bust

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ERC World Bank Program

• Some 50 ERCs funded at 400 million
• World Bank loan for 200 million
• All fields and markets
• Inception in 1992
• ICR Implementation Completion Report in 2003

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Staged Process

• Conceptualization
• Loan agreement
• Training
• Physical implementation
• Business training
• Business implementation

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ERC Issues

• Reform turmoil
• Paradigm shift from sci loop to technology loop
• Pressure to earn revenue to pay out loans
  (minifactories)
• Attachment to own technology
• Best scientist, not necessarily the best
  administrator
• Seen by some as a device to expand sponsoring
  organizations