Advance EU Access to Financial Incentives for Innovation in China

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Workshop on EU-China Joint Labs and Research Structures

Beijing, 25 September 2017

EU Partnership Instrument

in CHINA

Funded by the

European Union

Implemented by

DEVELOPMENT

Solutions Europe

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Project launched in July 2016

Through the monitoring of the implementation of the EU-China Joint Roadmap on Reciprocal Access to Research and Innovation Funding Programmes, this action contributes to:

✓ Improving innovation framework conditions for European research and innovation stakeholders in China, by advocating reciprocal access to Chinese national funding projects

✓ EU-China Innovation Cooperation Dialogue

✓ EU-China Economic and Trade Dialogue

Project Context 1

Three levels of analysis

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•Desk research and analysis of policy documents

Policies and regulations

•Monitoring and analysis of tender and project cycles

Tenders and projects

•Consultation with EU R&D stakeholders in China

Practical experiences and case studies

Degree of reciprocity afforded

to EU actorswithin Chinese

national STI programmes

Project Context1

Five funding pillars

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Project Context

National Natural

Science

Foundation of

China (NSFC)

国家自然科学

基金

Major S&T

Projects

(Mega Projects)

科技重大专项

Key R&D

Projects

(National Key

Projects)

重点研发计划

Technology

Innovation

Guidance Fund

技术创新引导

专项（基金）

Bases and

Talents

Programme

基地和人才专

项

• Five national funding pillars established after the 2014 reform (国发〔2014〕64号,

Guo Fa [2014], No. 64) to incorporate over 100 STI programmes previously existing

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Programmes issuing tenders

National Science & Technology Information System, Public

Service Platform国家科技管理信息系统公共服务平台Applicant

Funds

5

Summary of actions

Summary of actions and preliminary results2

Fifteen months of daily monitoring of Chinese national funding programmes

Consultations with EU R&D stakeholders (ongoing)

One experts’ workshop in Shanghai

Dialogue with the Ministry of Science and Technology

Formulation of a list of issues and recommendations to improve reciprocity

Seven ad hoc studies, including:

• Analysis of 2016 and 2017 National Key Project calls and results

• Analysis and mapping of the Technology Innovation Guidance Fund(s)

• Analysis and mapping of the Bases and Talents Programme

• Analysis of the 13th Five-year Plan for the Construction of Large Research Infrastructures

• Analysis of High- and New-Technology Zones

• Etc.

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Results of daily monitoring activities

Summary of actions and preliminary results2

Different degrees of transparency exist at different tender stages and in different funding programmes:

• NKPs and most NSFC projects follow a standardised cycle with a relatively high degree of transparency (calls for comments; list of evaluators; winners; scoring system)

• Mega Projects not very transparent, although improving

• Bases and Talents Programme relatively disorganised, currently undergoing deep reforms

Very limited successful cases from international actors:

• NSFC: participation rate of international entities between 0.2% and 0.6%

• NKPs: only 22 out of 2,287 NKPs (0.9%) were led by international entities (enterprises); only 2 NKPs were led by foreign experts; only very few ethnic Chinese foreign nationals sat in evaluation committees

• Fourth pillar and fifth pillar: investments made on start-ups and SMEs, or centres/labs established, are usually in Chinese-majority JVs, rather than foreign-majority or WFOEs

Some programmes tend to be more open and accessible than others

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Some NKPs tend to appear more open and accessible than others

The degree of openness of is assessed through an analysis of the relationship between their de jure and de facto accessibility, based on the 2016 and 2017 cycles

-3

-2

-1

0

1

2

3

4

5

-2 -1 0 1 2 3 4 5 6 7 8 9De

jure

ope

ness

De facto openess

Degree of openess of National Key Projects

Earth

observation

Precision

medicine

Reproductive

health

Endangered

ecosystems

Digital diagnosis and

treatment equipment

Biomedical

materials

New energy

vehicles

Major scientific

instruments

Forestry

resources

Air pollution

Smart

agricultural

equipment

Summary of actions and preliminary results2Results of daily monitoring activities

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List of issues and recommendations to improve reciprocity

Summary of actions and preliminary results2

List of issues and recommendations to improve reciprocity discussed during the 13th EU-China Joint Steering Committee on S&T Cooperation, and the 3rd EU-China Innovation Cooperation Dialogue

Four main issues:

• Despite China’s reform efforts, the national STI funding environment remains non-transparent and discouraging for EU entities

• Application period short with no pre-announcements, while certain local competitors enjoy privileged access to tender information

• Certain requirements represent real barriers to EU entities gaining access to funding

• Case-by-case evaluations tend to prevail due to the lack of standard evaluation practices and mechanism

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List of issues and recommendations to improve reciprocity

Summary of actions and preliminary results2

List of issues and recommendations to improve reciprocity discussed during the 13th EU-China Joint Steering Committee on S&T Cooperation, and the 3rd EU-China Innovation Cooperation Dialogue

Six recommendations:

1. Involve scholars honoured in talent attraction programmes (e.g. “1000 Plan”) and representatives from EU entities in the preparatory and evaluation stages of tenders

2. Strengthen information support mechanisms to increase international participation

3. Exchange good practices with the EU for evaluation criteria and mechanisms

4. Exchange good practices with the EU for IP provisions

5. Target sectors and areas where EU participation is particularly encouraged

6. Produce yearly statistics highlighting international participation to central funding programmes, and including selected international success stories

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Main outcomes of the afternoon session3

Clear picture of the status and direction of Chinese national STI funding programmes

Identification of main issues and challenges potentially precluding international participation; sharing of hints and good practices

Formulation of a series of recommendations for EU stakeholders on how to better address existing challenges

Formulation of a series of recommendations for policy-makers on how to improve reciprocity within national STI funding programmes

Thank you!

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Contacts

Ms Philippa JONES – Team Leader:philippa.jones@policycn.com

Mr Alessio PETINO – Project Manager:alessio.petino@development-solutions.eu