Supplementary material part d

October 2001

Agricultural Biotechnology Research Indicators: China

Jikun HuangCenter for Chinese Agricultural Policy

Chinese Academy of Sciences

Qinfang Wang and Yinding ZhangBiotechnology Research Institute

Chinese Academy of Agricultural Sciences

José Falck ZepedaInternational Service for National Agricultural Research

Working Paper, Center for Chinese Agricultural Policy, Chinese Academy of Sciences

TABLE OF CONTENTS

I. INTRODUCTION.........................................................................................................1

II. EVOLUTION OF AGRICULTURAL BIOTECHNOLOGY ......................................3

III. AGRICULTURAL BIOTECHNOLOGY RESEARCH INDICATORS.....................7

IV. AGRICULTURAL BIOTECHNOLOGY RESEARCH FOCUS............................... 10

V. CONCLUDING REMARKS ...................................................................................... 14

TABLES............................................................................................................................... 16

FIGURES ........................................................................................................................... 32

REFERENCES ................................................................................................................... 34

ANNEXES ........................................................................................................................ 37

ANNEX 1. LIST AND RESEARCH FOCUS OF AGRICULTURAL BIOTECHNOLOGYPROGRAMS SURVEYED IN CHINA

ANNEX 2. HUMAN AND FINANCIAL RESOURCE IN AGRICULTURALBIOTECHNOLOGY RESEARCH

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Agricultural Biotechnology Research Indicators: China

I. Introduction

Biotechnology has the potential to address problems not solved by conventional research. Atthe same time, biotechnology may speed up research processes and increase researchprecision (Conway, 2000). Proponents of biotechnology consider that GMOs (geneticallymodified organisms) have the potential to be healthier, and more nutritious and productivethan organisms derived through conventional means. Biotechnology proponents indicate thatthe technology has the potential to revolutionize medicine and agriculture, and that it willhelp solve poverty and environmental problems. Conversely, critics of biotechnology claimthat genetically modified (GM) crops will affect human health and damage the environment(Altieri and Rosset, 2000) and may do very little to alleviate poverty and income insecurity indeveloping countries. In spite of the highly conflicting views on biotechnology, GM cropshave been developed rapidly since the early 1990s. According to James (2001) the number ofcountries growing GM crops more than doubled, increasing from 6 in 1996 to 13 in 2000.The global area of GM crops increased from 1.7 million hectares to 44.2 million hectares in1996 and 2000 respectively. The 25-fold increase in area within 5 years reflects the growingacceptance of GM crops by farmers using the technology in both developed and developingcountries.

China was the first country to introduce a GM crop commercially and currently has the fourthlargest GM crop area sown, after the USA, Argentina, and Canada. Althoughcommercialization of major food crops has proceeded at a cautious pace in China, the officialpolicy of the Chinese government has been to promote biotechnology as one of the nationalpriorities in technology development since the 1980s (SSTC, 1990). The Chinese governmentviews agricultural biotechnology as a tool to help China improve the nation’s food security,raise agricultural productivity, increase farmer’s income, foster sustainable development, andimprove its competitive position in international agricultural markets (MOA, 1990).

An additional objective of China’s technology policy is to pursue a leadership position inbiotechnology development. With this objective in mind, China implemented a formalgovernment policy towards biotechnology and has initiated ambitious research programssince the mid-1980s (SSTC, 1990; NCBED, 2000). The first commercial release of a GMcrop in the world occurred in 1992 when transgenic tobacco varieties were first adopted byChinese farmers.1 GM varieties in four crops have been approved for commercialization inChina since 1997. These include GM varieties in cotton, tomato, sweet pepper, and petunias.GM varieties in crops such as rice, maize, wheat, soybean and others are either in theresearch pipeline or are ready for commercialization (Chen, 2000; Li, 2000). However, thereis a growing concern among policy makers regarding the impacts of the ongoing globaldebate over biotechnology and its potential effects on China’s agricultural international trade.Particularly because policy makers have very little information on the potential oppositionderived from consumer concerns on the environmental and food safety of biotechnologyproducts.

1 Chinese farmers have not been allowed to grow GM tobacco since 1995. This policy measure is a response tostrong opposition from tobacco importers from the USA and other countries.

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Some of the questions made recently by Chinese policymakers and researchers include:What are future resources needs if China intends to depend mainly its own research capacityfor biotechnology development? Does China have the ability to develop an internationallycompetitive biotechnology program? What are the financial requirements to establish such aprogram? How many resources has China invested in biotechnology? What is the humancapital available for biotechnology research in China? Answers to these questions are criticalto the Chinese government to further foster developments in biotechnology.

The objectives of this study are: to review the institutional development and status ofbiotechnology research in China, to review how critical agricultural biotechnology resourcessuch as human and financial capital have been used in China, and to examine the currentresearch focus of biotechnology research agencies. This study will thus provide a consistentdatabase of biotechnology research capacity for policy makers and future research efforts inChina.

Statistics on biotechnology research investment and human capacity presented in this paperare based on our primary survey of 29 leading plant biotechnology research institutes. The 29institutes reviewed in the study together account for more than 80 percent of plantbiotechnology programs in China. This study concentrates on the development of plantbiotechnology though contact information about leading animal biotechnology institutes isincluded in Annex 1. It is important to note that all the institutes surveyed for this report aremostly publicly funded entities. Investments in biotechnology research by the private sectorare very limited in China.

The instrument used in our survey is similar to others used in surveys of agriculturalbiotechnology research made by ISNAR and collaborators in other developing countries2.Results from the current China study will be integrated with the results from other countriesstudied by ISNAR in a synthesis paper exploring lessons learned from all studies to bepublished by ISNAR on a future date.

This report is organized as follows. In the second section, an overview of agriculturalbiotechnology evolution in China is presented. In the third section national goals andstrategies adopted by the Chinese government are briefly discussed. This section discussesthe strength of national biotechnology programs in terms of research investment and humancapital resources. The third section discusses the priorities and focus of plant biotechnologyresearch. The final section presents concluding remarks, which summarizes the main findingsof this study and provides implications and recommendations for both policy makers andresearchers.

2 These countries include: Colombia, Indonesia, Mexico, Kenya, and Zimbabwe.

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II. Evolution of Agricultural Biotechnology

Biotechnology in China has had a long history. In the latter Stone Age, Chinese inventedalcohol fermentation technology. In the late Zhou Dynasty (B. D. 221), Chinese learned tomake bean curd, soy sauce and vinegar by fermentation. In B. D. 200, the first Chinese poemcollection, “Shijing”, recorded the process of flax retting by anaerobic methods (Hou, 1996).These ancient technologies are still applied by the contemporary Chinese. Yet, systematicscientific research in biotechnology has been conducted only recently.

Several research institutes within CAAS (the Chinese Academy of Agricultural Sciences) andCAS (the Chinese Academy of Sciences) as well as in public universities, initiated their firstagricultural biotechnology research programs in the early 1970s. The research focus ofbiotechnology in the 1970s was cell engineering, tissue culture, and cell fusion. Research incell and tissue culture covered crops including rice, wheat, maize, cotton, vegetable andothers (KLCMCB, 1996). Several advanced rice varieties were generated through antherculture in 1970s and 1980s (Authors’ survey).

The most significant progress in biotechnology was made following the development oftransgenic techniques after 1983. The pace of biotechnology research increased significantlyafter China started a bold national policy supporting biotechnology programs in 1986. Sincethen agricultural biotechnology laboratories have been established in almost everyagricultural academy and major universities. By the late 1990s, there were over 100laboratories in China involved in transgenic plants research (Chen, 2000). Chinese researchinstitutes and laboratories have generated advanced biotechnology applications that havebeen utilized in medicine, chemistry, environment, the food processing industry, andagriculture.

Bt cotton is one of the most often cited examples on the progress of agriculturalbiotechnology in China. Six transgenic cotton varieties with resistance to bollworms havebeen produced and registered by Chinese institutions. These transgenic cotton varieties havebeen approved for commercialization in China (BRI, 2000a). Huang, Qiao, Rozelle, and Pray(2001) estimated that since the first Bt cotton variety was approved for commercialization in1997, total area under Bt cotton reached 0.7 million hectares in 2000. In addition, othertransgenic plants with resistance to insects, disease, herbicides or that have been quality-modified have been approved for field release and are ready for commercialization. Theseinclude transgenic varieties of

• Cotton resistant to fungal disease,• Rice resistant to insect pests or diseases,• Wheat resistant to barley yellow dwarf virus (Cheng, He, and Chen 1997),• Maize resistant to insects or with improved quality (Zhang, et al., 1999),• Soybeans resistant to herbicides, and• Transgenic potato resistant to bacterial disease. (MOA, 1999; NCBED, 2000;

Li, 2000).

Progress in plant biotechnology has also been made in recombinant microorganisms such assoybean nodule bacteria, nitrogen-fixing bacteria for rice and corn, and phytase fromrecombinant yeasts for feed additives. Nitrogen-fixing bacteria and phytase have been

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commercialized since 1999. In animals, transgenic pigs and carps have been produced since1997 (NCBED, 2000). China was the first country to complete the shrimp genomesequencing in 2000.

In the medical sciences, significant progress has been made in new gene cloning as in thecase of human primary diseases and functional genes of major tissue and organs. China alsoparticipated in the global collaborative program sequencing the human genome. Otherprogresses include genetic treatment of malignant brain tumors, and cardiovascular andnervous system diseases. In addition, Chinese institutions have performed research ofgenetically modified vaccines — such as vaccines for hepatitis-B —, genetically modifiedpharmaceuticals, and genetic engineering of antibody and proteins. In the area of animalbioreactors, a human protein gene was expressed in goats and mice. By 2000, eighteengenetic modified medicines and vaccines had been commercialized in China since the firstGM medicine – α1b interferon was commercialized in 1989 (Ma, 2001). In environmentalbiotechnology, research has been conducted on recombinant microorganisms, such as usingbacteria for wastewater treatment (NCBED, 2000).

II.1 Current System

Agricultural biotechnology research and development in China is predominantly financed andundertaken by the public sector. Private sector investment in agricultural biotechnologyresearch and development (R&D) is not significant. Several supra-ministries and agencies areinvolved in the design of research strategies, priorities, and the approval and allocation ofbudgets. The supra-ministries and agencies include the Ministry of Sciences and Technology(MOST), State Development Planning Commission (SDPC), and the Ministry of Agriculture(MOA) among others (Figure1).

Ministry of Sciences and Technology (MOST)At the national level, MOST establishes overall agricultural biotechnology R&D plans incollaboration with the Ministry of Agriculture. Overall agricultural biotechnology R&Dplans are finalized through five-year and long-term plans. In addition, MOA and MOSTpropose R&D legislation and implement-approved policies. MOST supervises, coordinates,and evaluates biotechnology R&D plans, projects and budgets. MOST also runs the fourlargest biotechnology programs in China. These are the “863” Plan, “973” Plan, SpecialFoundation of Transgenic Plants (SFTP), and Key Science Engineering Program (Figure 1and Table 2).

The “863” Plan, also called High-Tech Plan, was initiated in March 1986 as a result of therecommendation from 4 leading scientists in China. The “863” Plan supports a large numberof applied as well as basic research projects with a 10 billion RMB yuan budget over 15 yearsto promote high technology R&D in China. Biotechnology is one of 7 supporting areas of the“863” Plan, having a budget of 0.7 billion RMB yuan over the life of the plan. Interviewsfrom our survey suggest that actual budget for biotechnology research may be higher than thefigures presented here.

The “973” Plan was initiated in March 1997. This plan is similar to the “863 “Plan. The“973” plan was established to support basic science and technology research. Life sciences,

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with biotechnology as priority, constitute one of the key supporting areas. The SpecialFoundation of Transgenic Plants is a new and unique Foundation, being a 5-year-programlaunched in 1999 by MOST to promote research and development of transgenic plants inChina. The total budget of this program during its first five years is 500 million RMB yuan.The Key Science Engineering Program (KSRP) is a large program started in the late 1990sunder the supervision of MOST and SDPC to promote basic research, includingbiotechnology. The first project on agricultural biotech, crop germplasm and qualityimprovement, was funded with 120 million RMB yuan in 2000.

State Development Planning Commission (SDPC)The State Development Planning Commission makes annual, five-year and longer-termplans. SDPC ultimately determines national level financial budgets for all ministries in theChinese government. SDPC authorizes the Ministry of Finance (MOF) to transfer funds toMOST for later transfer to the various ministries and their research institutes, and the ChineseAcademy of Science (CAS). SDPC runs directly the High-tech Industrialization Program, aprogram promoting the commercialization and extension of biotechnology in both agricultureand non-agriculture areas (Figure 2). SDPC also co-manages with MOST other importantagricultural biotechnology programs, including the Key Science Engineering Program.

Ministry of AgricultureIn principle, the MOA coordinates national level agricultural biotechnology research withinthe Ministry’s research system. However, other ministries such as MOST and SDPC managemost biotechnology research programs, thus coordination by MOA is weak and limited. TheMOA directly manages only one Foundation, the China Agricultural Sciences and EducationFoundation (CASEF) initiated in the late 1990s. The budget for CASEF is very small relativeto the budget allocated to biotechnology programs administered by MOST and SDPC.Moreover, biotechnology is only small component of CASEF.

MOA contributes to agricultural biotechnology research programs mainly through itsinvolvement in formulation of overall agricultural biotechnology R&D plans and legislation,and implementation of legislated policies that are coordinated by MOST. Activities ofresearch institutes outside the domain of MOA are largely uncoordinated with MOA’s ownR&D. A result of the loose structure presented above is that coordination between institutes atlocal levels is generally weak – which contributes to unnecessary and inefficient duplicationof efforts.

Other Ministries and AgenciesThere are about 150 laboratories at the national and local level located in more than 50research institutes and universities across the country working on agricultural (plant andanimal) biotechnology. China initiated a program with large capital investments inbiotechnology in the mid-1980s. Laboratories that were evaluated and selected as NationalKey Laboratory (NKL) have been equipped with advanced instrumentation and also receivedextra operating funds to strengthen the biotechnology research program at the recipientlaboratory. Both SDPC and MOA administrated the laboratory selection program. NKLs aredenominated “Open Laboratories” because of the mandate that they should train and allowusage of both domestic and foreign guest researchers. In China, a total of 30 NKLs workingin biotechnology have been established. Among them, fifteen NKLs focus their efforts on

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plant, animal, and agriculturally related biotechnology. After a specific laboratory has beenestablished, MOST and SDPC are responsible for the assessment of NKLs.

At the national level, the MOA, CAS, State Forestry Bureau (SFB), and Ministry ofEducation (MOE) are the major authorities responsible for agricultural biotechnologyresearch (Figure 1). Under the MOA, there are 3 large academies, the Chinese Academy ofAgricultural Science (CAAS, about 8000 research staff), Chinese Academy of TropicalAgriculture (CATA), and Chinese Academy of Fisheries (CAFi).

Among the 37 institutes within CAAS, there are 12 institutes and 2 National KeyLaboratories (NKL) that conduct biotechnology research programs. CAFi and CATA alsohave biotechnology laboratories or programs, and each has one NKL performing research inbiotechnology.

National institutes outside the MOA system also undertake agricultural biotechnologyresearch. These include 7 research institutes and 4 NKLs under CAS, research instituteswithin the Chinese Academy of Forestry (CAFo) directly supervised by the State ForestBureau, and universities under the Ministry of Education (MOE). There are 7 NKLs locatedin 7 leading universities conducting agricultural biotechnology or agriculturally related basicbiotechnology research. In addition, institutes in the State Bureau of Petro-chemical Industryconducts biotechnology research efforts in the agro-chemicals (e.g. fertilizer). Structural andfunctional analyses are conducted in several leading National Key Laboratories inbiotechnology (SPC and NSFC, 1995).In additional to the NKLs, numerous laboratories in the medical academies at the nationaland provincial level, universities, and in CAS have been established since 1985.

A similar organizational structure is followed at the local/provincial level where theProvincial Science and Technology Commission (PSTC) is the key agency administeringbiotechnology programs (Huang and Wang, 2001). Each province has its own provincialacademy of agricultural sciences and at least one agricultural university. Each academy oruniversity at the provincial level normally has 1 or 2 institutes or laboratories focusing theirwork on agricultural biotechnology. Because of human capacity, physical equipment, andresearch investment constraints, contributions of local and/or provincial level biotechnologyprograms are small compared to the overall national biotechnology system, although thenumber of local level institutions is quite large. Each individual program is individuallyunable to make the necessary investments to produce viable biotechnology outputs.Cooperation and coordination among local or provincial level agricultural biotechnologyprograms is limited.

Summarizing, the institutional framework of agricultural biotechnology program in China isvery complex, having a large number of participating institutions engaged in agriculturalbiotechnology. However, multiple sources of funding (MOST, SDPC, MOA, local andprovince), combined with the large number of biotechnology research institutes andlaboratories, and the lack of coordination and collaboration among research institutes both atthe national and the provincial level, have led to large overlaps of the agriculturalbiotechnology research programs and has contributed to unnecessary and inefficientduplication of efforts, particularly at the local level.

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III. Agricultural Biotechnology Research Indicators

III.1 Overview

To create a modern and internationally competitive biotechnology research and developmentsystem, China has made great efforts to improve the innovative capacity of its nationalbiotechnology programs since the early 1980s. In contrast to the stagnating (or evendeclining) trend of agricultural research expenditure and research staff in the late 1980s andthe early 1990s (Huang and Hu, 1999), R&D investments and the number of research staff inbiotechnology has increased significantly since the early 1980s. Based on our primary surveyof 29 research institutes in the plant biotechnology, the number of researchers more thandoubled in past 15 years, and total investment in real terms nearly doubled every five years.

III.2 Human Resources

China’s public agricultural research system, the largest in terms of research personnel in theworld, employs more than 130,000 persons (Huang and Hu, 2001). Table 3 shows thenumber and composition of plant biotechnology research staff in the institutes included in oursurvey. However, we cannot generate a complete time series data because of lack of dataavailability before 1995 on 7 of the 29 institutes surveyed. Results from 22 institutes withcomplete information show that the number of total staff3 involved in biotechnology doubledwithin 13 years increasing from 641 in 1986 to 1205 in 1999 (Table 3). Of total professionalstaff, 484 where involved in research directly, whereas 207 where in management positions.Total professional staff increased 142% since 1986. The total number of professional staff inall the 29 plant biotechnology institutes reached 691 in 1999.

Support staff has also increased within the period contemplated in the survey. Total supportstaff increased from 356 in 1986 to 514 in 1999. In the agricultural biotechnology programssurveyed, the ratio of management staff per researcher has varied little from 1986 to 1999.This ratio was 0.4 in 1986 and 0.43 in 1999. The ratio of support staff per researcher haschanged significantly. The ratio was 1.75 in 1986 and 1.06 in 1999. The ratio of total staff,including management and support staff, per researcher decreased 59% from 2.16 in 1986 to1.49 in 1999.

Among total staff, almost 60 percent was professional (i.e., researchers and researchmanagers). The share of the professional staff has been rising over time (Table 3).Professional staff increased by 142 percent within the same period. The most significantgrowth was in the late 1980s, reflecting the large movements of several biotechnologypromotion initiatives by the government in the second half of the 1980s (Table 3).

Similar to other agricultural research program in China, plant biotechnology researchprimarily is built around the research institutes (Table 3). In the 29 institutes surveyed in thisstudy in 1999, there where 633 researchers employed at research institutes. Total staff inuniversities sum 166. Of total research staff in universities, 72 were researchers, 52managers, and 42 support staff. In contrast there were 1491 personnel in institutes, of which 3 Total staff includes professional and support staff. Professional staff includes researchers and management. Support staffincludes technical and other personnel.

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633 were researchers, 212 management and 646 were support staff. It is interesting to notethat the total personnel in universities represented 5 percent of the total universities’ researchstaff and about 4 percent of all the agricultural research system.

The ratio of managers per researchers in 1999 was significantly different between universitiesand institutes. This ratio was 0.72 managers per researchers in universities, whereas ininstitutes was 0.33. The ratio of support staff per researcher was also different. Inuniversities the ratio of support staff (technical and other) was 0.58 support staff perresearcher, whereas in institutes the ratio was 1.02. The ratio of total management andsupport staff per researcher was not different between both types of programs. The ratio oftotal management and support staff per researcher was 1.3 for universities and 1.35 forinstitutes.

A significant improvement occurred in human capacity in biotechnology research in China.In 1986 there were only 5 researchers holding a Ph.D. degree (Table 4). The number ofresearchers with a Ph.D. reached 141 in 1999 for 22 institutes and 203 for 29 institutes.Within professional staff, the share of researchers holding Ph.D. degrees increased from 2percent in 1986 to about 20 percent in 1999. The share of professional staff holding a Ph.D.degree is expected to keep rising in the future as the ability to conduct Ph.D. educationalprograms in biotechnology has been strengthened in several of the surveyed institutes. Thepercentage of professional researchers with Ph.D. degree in universities is much higher thanthat in research institutes. Among 124 professional staff in universities, 58 held Ph.D.degrees in 1999, accounting for 47 percent of the total. In research institutes, researcherswith Ph.D. degree represented 17 percent of total staff in 1999. The percent of Ph.D. degreeholding staff varied widely between institutes and universities. The large number ofbiotechnology research institutes and wide variation of human capacity within institutes willbe a challenge for China to consolidate its national biotechnology research programs for anygiven amount of research budget in the future.

While the share of researchers with a Ph.D. degree in biotechnology is still low incomparison to leading biotechnology countries, it is interesting to note that this share is muchhigher than that in the Chinese agricultural research system in general. In the nationalagricultural research system, researchers holding a Ph.D. degree accounted for only 1.1percent of the total professional staff in 1999 (Huang and Hu, 2001).

Another unique characteristic of biotechnology research in China is that the share of femaleresearchers relative to the total professional staff is higher than in the rest of the agriculturalresearch system. In plant biotechnology, the professional female researchers accounted forabout 33 percent of the total (Table 5). In contrast, the percent of female researchers in therest of the agricultural research system was about 30 percent of the total in 1999. Thedifferent working environment compared to non-biotechnology research may explain therelatively larger share of females in biotechnology research. Agricultural research in the restof the Chinese research system involves extensive field activities in which the femaleresearchers may have less comparative advantage than male researchers due to cultural andsocial constraints of Chinese society.

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III.3 Financial Resources

A significant growth in biotechnology research investment was observed in China during the1990s (Table 6). Biotechnology research investment was insignificant during the early 1980sin China (MOST, 1990). For 22 of the institutes surveyed in this study, total investment inplant biotechnology research reached 16 million RMB yuan4 in 1986 when China formallystarted its “863” Plan. By 1990, investments in biotechnology grew to 27.7 million RMByuan, representing an increase of 73 percent over 1986 or roughly a 20 percent annual growthrate. Strong growth during this period was mainly due to the increasing research projectbudgets and equipment expenses. Investments in biotechnology reached 92.8 million RMByuan in 1999 for 22 institutes surveyed. Total investments increase to 130.8 million RMByuan if information for all 29 institutes is included.

The growth rate of biotechnology research investment slowed down to 4 percent in 1990-95.The slow-down of investment growth was expected as large investments in biotechnologyequipment were nearly completed during the early 1990s. On the other hand, the growth inresearch project budgets was still remarkable. The annual growth rate of research projectbudgets remained as high as 10 percent in 1990-95. Several large biotechnology programs (orprogram with a biotechnology component) were initiated since the mid-1990s. These includethe “973” Plan, Special Foundation of Transgenic Plants, and Key Science EngineeringProgram, Bridge Plan, and others (Table 2). With the implementation of these programs,biotechnology research investment increased dramatically from 32.7 million RMB yuan in1995 to 92.8 million RMB yuan in 1999 for the 22 institutes studied. This increaserepresented an annual growth of about 30 percent. Based on our estimates, total investmentsin plant biotechnology research reached 140 million RMB yuan in 1999 for the 29 institutessurveyed.

The main source of investments in biotechnology research in China is the nationalgovernment. Donor agencies contributed between 1.5 percent in 1986 to 6.9 percent of thetotal plant biotechnology budget for 22 institutes studied in 1999 (Table 6). Funds fromcompetitive grants supporting research projects accounted for two thirds of the total budget.The increasing share of competitive grants reflects the change in priority from capacitybuilding to an increase in specific research projects.

Of the total investment in plant biotechnology research in the sampled institutes, 28 percent(or 36.7 million RMB yuan) was allocated to research in universities, whereas the remaining72 percent (94.1 million RMB yuan) to research institutes in 1999 (Table 6). Because theshare of researchers in universities represents about 10 percent of the total, this implies thatthe research expenditure per scientist is much higher in the universities than in the researchinstitutes. This pattern of investment is expected, as the share of the researchers with a Ph.D.degree is higher in the universities than in research institutes.

Among the total budget spent, payments for personnel accounted between 36 percent in 1986to 18 percent in 1999 (Table 7). If information for all 29 institutes is included the percentexpenditures on personnel reaches 21 percent. This share is much lower than in developedcountries where they normally reach half of the total budget (Hunag and Hu, 2001). The 4 Throughout this discussion paper all expenditures values are reported in constant 1999 RMB yuan. The exchange rate in1999 was RMB yuan 8.27 per US dollar.

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lower share of personnel costs may partially reflect a lower level of human resources but mayalso point to a relatively lower cost of conducting biotechnology research in China. As thelevel of private sector investments in agricultural R&D increases in China (Huang and Hu,2001), public biotechnology research programs may face the challenge of keeping its bestprofessional staff from moving to the private sector, particularly if the salary and incentivesystem for public agricultural research is not improved in the future.

Operating expenditures have increased from 3 million in 1986 to 44 million RMB yuan in1999. If all 29 institutes sampled in the survey are included this figure increases to 56.2million RMB yuan. The increase from 3 to 44 million RMB yuan represents an increasefrom 23 to 52 percent in 1986 and 1999 respectively. Conversely, capital expenditures haveincreased from 5.5 million RMB yuan in 1986 to 21.5 million RMB yuan in 1999. However,the increase in capital expenditures represents a decrease of the capital’s share of the totalbudget from 42 % in 1986 to 27% in 1999.

While both research investments and the number of researchers increased in the past 15years, the former has grown much faster than the latter, and thus research expenditures perresearcher increased rapidly. Expenditure per professional staff doubled from 46 thousandRMB yuan in 1986 (at constant 1999 price) to 115 thousand RMB yuan in 1999 (Table 8).Expenditure per staff member has tripled from 20.6 thousand RMB yuan in 1986 to 66.0 in1999. If information from 29 institutes is included the increase in expenditures changesslightly. Personal communications with scientists and leaders of the 29 biotechnologyinstitutes surveyed in 1999 reveal that, while most of them are satisfied with rising researchbudgets, many of them are still concerned with the low level of research expenditures perstaff member and the fragmentation of biotechnology research projects over many researchinstitutes.

IV. Agricultural Biotechnology Research Focus

IV.1 Priorities for Agricultural Biotechnology Research

In 1985, the Ministry of Science and Technology (MOST) developed a five-yearBiotechnology Development Outline (BDO). A BDO defines the goals and objectives ofbiotechnology research and development in agriculture, medicine, chemistry, environment,and food processing. A BDO also proposes policy measures and research priorities in eachresearch field. After a BDO is formulated, it is implemented through several programs inbiotechnology or biotechnology related fields such as the “863” Plan, “973” Plan, SFTP,KSEP, NSFC, and others. Based on the BDO, each biotechnology program develops its ownguideline that specifies research priorities within its program for both the whole 5 year periodand for each individual year. In each biotechnology program there is a committee of expertswith members from CAAS, CAS, leading universities and other government organizationsthat contribute to formulate each program’s guideline. Therefore scientists play a veryimportant role in priority setting while designing policies regarding biotechnology research.

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Table 9 summarizes research priorities of plant biotechnology identified in variousBiotechnology Development Outlines for the past 15 years in China. In the selection ofmajor crops to be included in the biotechnology programs, cotton, rice, wheat, maize,soybean, potato, and rapeseed have been consistently listed as priority crops for researchfunding from the national biotechnology programs since the mid-1980s. Total area sown tocrops listed as priorities was over 100 million hectares, accounting for more than two-third ofthe total crop area sown in China in the 1990s (SSB, 2000).

Cotton has been consistently selected as a top priority crop not only because of its importancedue to area sown and its contributions to the textile industry and trade, but also because of theserious problems with the associated rapid increase in pesticide applications to control insects(i.e., bollworm and aphids). Per hectare pesticide expenditures in cotton productions inChina increased considerably in the past decades, reaching RMB yuan 834 (approximatelyUS $ 100) in 1995. This amount is much higher than comparable expenditure in grain cropsproduction but lower than in horticultural production (Huang, et al, 2001). Cotton productionalone consumed about US$ 500 million annually in pesticides in recent years.

Rice, wheat and maize are the three most important crops in China. Each accounts for about20 percent of the total area planted. Production and market stability of these three crops areprimary concern of the Chinese government as they are central to China’s food security.National food security, particularly related to grains, has been a central goal of China’sagricultural and food policy and has been incorporated into biotechnology research prioritysetting. Grain crops have been prioritized not only for biotechnology and non-biotechnologyresearch programs (Huang and Hu, 2001), but also for irrigation investment and othergovernment support programs in agriculture (Huang and Ma, 2001).

Genetic traits viewed as priorities may be transferred into target crops. Priority traits includethose related to insect and disease resistance, stress tolerance, and quality improvement(Table 9). Pest resistance traits have top priority over all traits. A recent study by Huang, etal (2001) indicate that various kinds of pesticides have been used at a large scale since the1950s to protect crops from damage caused by insects and diseases. Pesticide usage hasbecome even more intensive especially after the 1980s. The authors estimated that currentlyChinese farmers might spend as much as 36 billion RMB yuan (US$ 4.3 billion) annually onchemical pesticides alone.

Although input decreasing or output enhancing have been the main priority of Chineseagricultural biotechnology research, quality improvement traits have recently been includedas priority traits in response to increased market demand for quality foods. Qualityimprovements have been targeted particularly to rice and wheat, as consumer income rises inChina. Having quality improvement traits as a priority is associated with recent governmentstructural change policies in agriculture that emphasizes the production of better quality food.In addition, stress tolerance traits — particularly resistance to drought — are gainingattention particularly with the growing concern over water shortages in northern China.Northern China is a major wheat and soybean production region with significant implicationsto China’s future food security and trade.

Tables 10 through 14 provide lists of all the plant biotechnology products approved for fieldtrial, environmental releases, and commercialization. Interviews with the scientists involved

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in biotechnology research programs indicate that most cases approved for various stages ofbio-safety assessment presented in tables 10 through 14 are in general consistent with thebiotechnology development China’s priority setting framework as presented in Table 9. It isworth noting that among the cases from domestically generated biotechnology that wereapproved for environmental release from 1997 to July 1999, approximately 85 percent werefrom the 29 institutes in which we conducted our survey for this study. In addition, of the 26cases approved for commercialization so far, twenty-three cases came from the institutessampled in our study and 3 were from Monsanto (Bt cotton).

Table 10 presents the available plant events in China up to 1999. A plant event is the specificcombination of a genetic transformation construct and a plant host. This list also includes thestage in which each plant event is in the biosafety approval process. There are 18 crops withevents that have entered the biosafety approval process. There are 39 events, of which 9 arefor insect resistance, 20 for disease resistance, 2 for herbicide resistance, 5 for agronomic orquality modification, and 3 for stacked insect or disease resistance and quality modification.

In 1997 there were 57 applications for field trial, environmental release, andcommercialization (Table 11)5. Of these China approved 46 requests for agriculturalbiotechnology products. The total number of approved cases for field trials, environmentalrelease or commercialization reached 251 in 1999. Of the 251 approved cases, 92 whereapproved for field trials, 74 for environmental release and 33 for commercialization.

Up to July 1999, 44 cases have been approved for field trials in China (Table 12). Of the 44cases approved for field trials 21 are for resistance to insects, 15 resistant to disease, 7 withan altered agronomic characteristic, and 1 with a stacked herbicide resistance and alteredagronomic response. Rice has the most approved cases with 21, followed by cotton with 10,tomato with 3, maize and tobacco with 2. Table 13 presents the cases approved forenvironmental release in China. 51 cases have been approved, of which are for resistance toinsects, 17 for resistance to disease, 6 are for a modified agronomic characteristic orresponse, and 3 are for herbicide resistance. Cotton has the highest number of approved casesfor environmental disease with 14, followed by rice with 10, potato with 8, tomato andtobacco with 10, and maize with 4, and sweet pepper and poplar with 2.

Among the approved releases for commercialization (Table 14) sixteen approvals weregranted to Bt cotton (varieties developed by CAAS and by Monsanto), 5 to tomatoes withresistance to insects or improved shelf-life, a petunia with altered flower color, and sweetpepper resistant to diseases.

IV.2 Plant Biotechnology Products in the Research Continuum

There are over 120 different genes and more than 50 different plant varieties that have beenused in plant genetic engineering in China since the middle 1980s (Author’s survey). Plantbiotechnology research has emphasized the development of new varieties for major cropsseemed as high priority by the Chinese government such as cotton, rice, wheat, maize,soybean, potato and rapeseed. Traits introduced into these crops include insect resistance,

5 Applications were made after the creation of the Office of Genetic Engineering Safety Administration (OGESA) which wasestablished in the MOA in 1996.

13

disease resistance, herbicide resistance, stress tolerance and quality improvements (Wang,Xue and Huang, 2000, Table 2). The main achievement include:

Newer research focuses on the isolation and cloning of new disease- and insect-resistancegenes, including the genes conferring resistance to cotton bollworm (Bt, CpTI), rice stemborer (Bt), rice bacterial blight (Xa22 and Xa24), rice plant hopper, wheat powdery mildew(Pm20), wheat yellow mosaic virus, and potato bacterial wilt (cecropin B) (MOA, 1999;NCBED, 2000). These genes have been applied in plant genetic engineering since the late1990s. Significant progress has also been made in the functional genomics of Arabidopsisand in plant bioreactors, especially in utilizing transgenic plant to produce oral vaccines(BRI, 2000).

IV.2.1 Transgenic plants resistant to insects

• Cotton: Insect-resistant Bt cotton was developed by the Biotechnology Research Institute(BRI) of the Chinese Academy of Agricultural Sciences (CAAS), a leading institute oncrop biotechnology in China. The Bt gene’s modification and plant vector constructiontechnique was granted a patent in China in 1998. The Bt gene was introduced into majorcotton varieties using the Chinese-developed pollen tube pathway (Guo and Cui, 1998and 2000). Five transgenic, open-pollinated varieties and one transgenic hybrid Bt cottonvariety have been registered with the new plant variety registration authorities. Bt cottonhas been approved for commercialization in 9 provinces since 1997 (BRI, 2000). The areaplanted to Bt cotton reached around 700,000 hectares, nearly equally shared by Chineseand Monsanto Bt varieties (Huang, Qiao, Rozelle and Pray, 2001).

• Rice: Several research institutes and universities have been working on transgenic riceresistant to insects since the early 1990s. Transgenic hybrid and conventional Bt ricevarieties, resistant to rice stem borer and leaf roller were approved for environmentalrelease in 1997 and 1998 (Zhang, 1999). An additional transgenic rice variety thatexpressed resistance to rice plant hopper has been tested in field trials. Through antherculture, the CpTi gene and the Bar gene were successfully introduced into rice, whichexpressed resistance to rice stem borer and herbicide (NCBED, 2000; Zhu, 2000).

• Maize: A transgenic Bt maize resistant to maize stem borer was developed by the ChinaAgricultural University, which was approved for environmental release in 1997 (OGESA,1999).

• Soybean: The Jinlin Academy of Agricultural Sciences recently developed a transgenicBt soybean that expresses resistance to the soybean moth. The transgenic lines Jilin 27and Heilong 35 have already been approved for field trials and environmental release in1997 (NCBED, 2000).

• Others: Transgenic tobacco, papaya, poplar tree, and a few others now are either in thestages of field trials or environmental releases (OGESA, 1999; Wu, Sun, and Yao, 2000).Research in transgenic wheat resistant to insect (i.e., aphids) is in the research pipeline.

14

IV.2.2 Transgenic plant resistant to disease

• Cotton: BRI of CAAS recently made a breakthrough in plant disease resistance bydeveloping cotton resistant to fungal diseases. Glucanase, glucoxidase and chitnase geneswere introduced into major cotton varieties. Transgenic cotton lines with enhancedresistance to Verticillium and Fusarium were approved for environmental release in 1999(BRI, 2000).

• Rice: Transgenic rice with Xa21, Xa7 and CpTi genes resistant to bacteria blight or riceblast where developed by the Institute of Genetics of CAS, BRI, and China CentralAgricultural University. These transgenic rice plants have been approved forenvironmental release since 1997 (Zai and Zhu, 1999; NCBED, 2000).

• Potato: Synthesized cecropin polypeptide genes and transgenic potato lines resistant tobacterial wilt were developed by BRI in the mid-1990s. These genetically modifiedpotato lines resistant to bacterial wilt were approved for environmental release in Beijingand Sichuan province in 1997 (Jia and Tang, 1998).

IV.2.3 Other plant biotechnologies

Significant progress has been made with transgenic plants expressing drought and salinitytolerance in rice and wheat. Transgenic rice expressing drought and salinity tolerance hasbeen in field trials since 1998. Genetically modified nitrogen fixing bacteria for rice andmaize, as well as phytase for feed additives, were approved for commercialization in 2000.In addition to plant genetic engineering, tissue culture techniques have also have been oftenapplied in horticulture, to produce virus free potatoes and strawberries. Several adopted riceand sugar beet varieties were developed by anther culture (Authors’ survey, 2000). Progresshas also been made in molecular marker assisted selection of plant varieties. For example, anew soybean line with high yield and resistance to cyst nematode disease was produced in1998. In microbial research, several valuable insecticidal genes were isolated and cloned.

V. Concluding Remarks

China considers agricultural biotechnology a strategically significant tool to improve itsnational food security, raise agricultural productivity, and create a competitive position ininternational agricultural markets. China also intends to position itself as a world leader inbiotechnology research. This objective also addresses the perception that policy makers haveof the risk associated with the dependence of national food security on imported technologies.Despite the growing debate worldwide on GM crops, China has developed agriculturalbiotechnology decisively since the mid-1980s. China was the first country to commercializea GM crop and was the fourth country in terms of GM crop area in 2000. China has about 20genetically modified plants that are in the pipeline for commercialization.

15

The institutional framework for supporting agricultural biotechnology research program iscomplex both at national and local levels. However, our review of the current institutionalarrangements also show that the coordination among institutions and consolidation ofagricultural biotechnology programs will be essential for China to create a stronger and moreeffective biotechnology research program in the future.

This paper shows that China’s efforts in promoting biotechnology research have increasedover time. Most efforts have been made to improve research capacity, increase the stock ofknowledge and technology, and promote commercialization of the biotechnology that aresignificantly needed by farmers (i.e., Bt cotton). Research capacity in terms of both quantityand quality has improved significantly. The share of professional staff holding a Ph.D.degree in biotechnology research is the highest in China’s agricultural research system. Onthe other hand, human capacity may need further improvement if China intends to establishan internationally competitive biotechnology research program and to achieve the overallgoal of promoting agricultural biotechnology in China.

A remarkable event has been the growth of government investments in agriculturalbiotechnology research. In contract to stagnating expenditures on agricultural research ingeneral, investments in agricultural biotechnology have increased significantly since the early1980s. In spite that the number of researchers increased rapidly over the past 15 years,investment measured as expenditure per scientist more than doubled.

Examination of the research focuses of agricultural biotechnology research reveals that thefood security objective and the current farmers’ demands for specific traits and crops havebeen incorporated into priority setting. Moreover, the current priority setting of investmentsin agricultural biotechnology research has led to the investment in favor of the commoditiesin which China does not have relative comparative advantage in the international market suchas grain, cotton and oil crops, which implies that China is targeting its GMO products at thedomestic market. However, the impact of the current priority setting on poverty is not clear.

Other challenges that China will face in developing a strong national biotechnology programin the future includes the low salaries and a poor incentive system that may not prevent itstalent staff from moving to the private sector and to institutions governing GM plantsmanagement, in particular safety management. There are other important questions thatrequire attention. Should China continue to investment only its own resource inbiotechnology? Or can China rely more on imported technology? Can China define theappropriate mix and trade-offs between domestic and imported technologies? What are theimplications of the current biotechnology development on the income and welfare of thepoor? How can China incorporate the objective of poverty alleviation into the priority settingof biotechnology research? Does China need to continue expanding its biotechnology at sub-national level? Or, what are the costs and benefits of biotechnology research at the provinciallevel? How can biotechnology programs at different levels (and within the same level) becoordinated to maximize the efficiency of the research investment? All these issues inaddition to the impacts of GM plants on the economy, environment, and human health (bothin the short run and long run) need to be carefully explored.

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TABLESTable 1. Major Policy Measures Related to Biotechnology in China Since the Early 1980s

Key Breakthrough S&TProjects

Started in 1982 by SDPC. Updated every five years. One of major componentsof these projects is biotechnology R&D.

Patent system Patent law promulgated 1985. A total of 1599 applications on geneticengineering for invention patents were filed between 1985 and 1999.

National BiotechnologyDevelopment PolicyOutline

Prepared by scientists and officials led by MOST, SDPC, and others in 1985.Formally issued by the State Council in 1988. The Outline defined the researchpriorities, development plan and measures to achieve targets.

National KeyLaboratories (NKLs) onBiotechnology

Started in 1985 under MOST. Thirty National Key Laboratories in biotechnology(15 on agriculture or agriculture related) have been established. NKLs are openlaboratories, inviting both domestic and international visiting fellows.

The Climbing Program A National Program for Key Basic Research Projects, including biotechnologyprogram, initiated in the early 1980s.

High Technology Plan(863)

Established in 1986 with 10 billion RMB for 15 years to promote hightechnology R&D in China. Biotechnology is one of 7 supporting areas with atotal budget of 0.7 billion RMB.

Natural ScienceFoundation of China

Established in 1986 to support basic science research. Life science andAgronomy are two support areas related to the agro-biotechnology.

Biosafety regulations MOST issued the Biosafety Regulations on Genetic Engineering in July of 1993,which include the biosafety grading and safety assessment, application andapproval procedure, safety control measures, and legal regulations.

Agricultural biosafetyregulations

MOA issued the Safety Administration, Implementation, and Regulations onAgricultural Biological Genetic Engineering in July 1996.

“973 “Plan Initiated in March 1997 to support the basic science and technology research.Life science is one of the key supporting areas.

Safety Committee Biotech Safety Committee was set up in MOA in 1997. The committee is incharge of the implementation of agricultural bio-safety regulations

Special Foundation forTransgenic Plants

A 5-year-program launched in 1999 by MOST to promote the research anddevelopment of transgenic plants in China. The total budget of this program inthe first 5 years is 500 million RMB.

Key Science EngineeringProgram

Started in the late 1990s under MOST and SDPC to promote basic research,including biotechnology program. The first project on biotech (crop germplasmand quality improvement) was funded in 2000 with 120 million RMB.

Special Foundation forHigh-techIndustrialization

A program supported by the SDPC to promote the application andcommercialization of technologies, started from 1998

Bridge Plan In 1999 MOA initiated the Bridge Plan. This plan focused on the diffusion ofnew technology that is almost ready for producers.

Seed Regulation and Law Regulation on the Protection of New Varieties of Plants was issued in 1999. Thefirst Seed Law was issued in 2000.

An Updated AgriculturalBiosafety Regulation

1996 MOA’s biosafety regulation was amended and issued by the State Councilin May 2001.

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Table 2. National Key Laboratories in Biotechnology

AffiliationLaboratory Research Institute University

Applied Plant Biotechnology1. National Key Lab of Agricultural

BiotechnologyChina AgricultureUniversity

2. National Key Lab of Crop GeneticImprovement

Central ChinaAgricultural University

3. National Key Lab of Plant Diseaseand Pest Biology

Institute of PlantProtection, CAAS

4. National Key Lab of Tropical CropBiotechnology

Institute of TropicalCrops, CATA

Applied Animal Biotechnology1. National Key Lab of Veterinary

BiotechnologyHaerbin VeterinaryInstitute, CAAS

2. National Key Lab of Freshwater FishGermplasm and Biotechnology

Changjiang AquaticProduct Institute, CAFi

Other Applied Biotechnology

1. National Key Lab of MembraneBiology & Engineering

Institute of Zoology, CAS Peking UniversityQinhua University

2. National Key Lab of BiochemistryEngineering

Institute of Chemistry andmetallurgy, CAS

3. National Key Lab of EnzymeEngineering

Jilin University

Basic Biotechnology (Plant, Animal, Microorganism, and others)

1. National Key Lab of Protein & PlantGenetic Engineering

Peking University

2. National Key Lab of GeneticEngineering

Fudan University

3. National Key Lab of Plant MolecularGenetics

Institute of PlantPhysiology, CAS

4. National Key Lab of Plant Cell andChromosome Engineering

Institute of Genetics,CAS

5. National Key Lab of Fresh WaterEcology and Biotechnology

Institute of AquaticBiology, CAS

6. National Key Lab of MolecularBiology

Institute of Biochemistry,CAS

18

7. National Key Lab of PreliminaryDevelopment of MicroorganismResources

Institute of Microbiology,CAS

8. National Key Lab of BiologicalControl

Zhongshan University

9. National Key Lab of Drought Agro-ecology

Lanzhou University

10. National Key Lab of Bioreactor Huadong Science &Technology University

11. National Key Lab of MicrobialBiotechnology

Shandong University

Medical Biotechnology1. National Key Lab of Pharmaceutical

BiotechnologyNanjing University

2. National Key Lab of Virus GeneticEngineering

Institute of Virus,Chinese Academy ofPreventive MedicalSciences

3. National Key Lab of Natural andBionic Pharmaceuticals

Beijing MedicalUniversity

4. National Key Lab of Cancel Geneand Related Gene

Shanghai CarcinomaInstitute

5. National Key Lab of MolecularTumorology

Tumor Institute, ChineseAcademy of MedicalSciences

6. National Key Lab of ExperimentalBlood

Blood Research Institute,Chinese Academy ofMedical Sciences

7. National Key Lab of MedicalGenetics

Hunan MedicalUniversity

8. National Key Lab of MedicalMolecular Biology

Institute of Basic MedicalSciences, ChineseAcademy of MedicalSciences

9. National Key Lab of Medical Neuro-biology

Shanghai MedicalUniversity

10. National Key Lab of NucleicMedical Sciences

Jiangsu Medical Instituteof Atomic Energy

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Table 3. Numbers and Composition of Plant Biotechnology Research Staff in Sampled Institutes,1986-99.

Year Professional staff Support staff

Mgt ResearchSub-total

Technical OtherSub-total

Totalstaff

Staff number1986 82 203 285 80 276 356 6411990 114 295 409 98 301 399 8081995 164 371 535 111 322 433 9681999 207 484 691 133 381 514 12051999a 264 705 969 233 455 688 1657

Composition (%)1986 13 32 44 12 43 56 1001990 14 37 51 12 37 49 1001995 17 38 55 11 33 45 1001999 17 40 57 11 32 43 1001999a 16 43 58 14 27 42 100

Staff number by institute and university in 1999aUniversity 52 72 124 15 27 42 166Research institute 212 633 845 218 428 646 1491Note: All data are from 22 biotechnology research institutes except for those with 1999a that includes29 institutes in 1999. These 29 institutes account for about 80% of research staff, about 85% ofresearch expenditure, and more than 90% of research output in China’s plant biotechnology.Source: Authors’ survey.

20

Table 4. Plant Biotechnology Professional Research and Management Staff by Education inSampled Institutes, 1986-99.

Professional staff by educationYear

Ph.D. MS BS OthersTotal

Staff number1986 5 39 172 69 2851990 31 90 197 91 4091995 72 112 238 113 5351999 141 159 269 122 6911999a 203 279 343 144 969

Composition (%)1986 2 14 60 24 1001990 8 22 48 22 1001995 13 21 44 21 1001999 20 23 39 18 1001999a 21 29 35 15 100

Staff number by institute and university in 1999aUniversity 58 35 27 4 124Research institute 145 244 316 140 845Note: All data are from 22 biotechnology research institutes except for those with 1999a thatincludes 29 institutes in 1999.Source: Authors’ survey.

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Table 5. Professional Research and Management Staff in Full-Time Equivalent and by Gender inSampled Institutes, 1986-99.

Staff number Gender share (%)

Year Female Male Female Male

Full-timeEquivalent

1986 94 191 33 67 2361990 139 270 34 66 3441995 182 353 34 66 4571999 228 463 33 67 6081999a 349 620 36 64 874

Note: All data are from 22 biotechnology research institutes except for those inthe last low that includes 29 institutes.Source: Authors’ survey.

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Table. 6. Plant Biotechnology Research Budget by Source in the Sampled Institutes, 1986-99

By sourceYear

Core Project Equipment Commerce Consultant Contract Donors OthersTotal

Million RMB yuan in 1999 price

1986 4.2 5.4 4.9 0.0 0.0 0.0 1.5 0.0 16.0

1990 4.1 13.3 8.1 0.0 0.0 0.0 2.1 0.0 27.71995 4.8 20.3 3.3 0.1 0.0 0.0 2.6 1.5 32.7

1999 14.4 60.0 8.1 0.3 1.0 0.1 6.9 2.0 92.81999a 19.4 86.9 10.9 0.3 1.3 1.1 7.6 3.3 130.8

Composition (%)1986 26 34 31 0 0 0 9 0 1001990 15 48 29 0 0 0 8 0 1001995 15 62 10 0.3 0 0 8 5 1001999 16 65 9 0.3 1.1 0.1 7 2 1001999a 15 66 8 0.3 1.0 0.8 6 3 100

Research budget by institute and university in 1999aUniversity 2.4 29.4 2.6 0.2 0.0 0.0 0.8 1.3 36.7

Researchinstitute

17.0 57.5 8.2 0.2 1.2 1.1 6.9 2.0 94.1

Note: All data are from 22 biotechnology research institutes except for those with 1999a that includes 29institutes in 1999.

Source: Authors’ survey.

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Table 7. Plant Biotechnology Research Expenditures by Category in the Sampled Institutes, 1986-99

Year Personnel Operating Capital Total

Million RMB yuan in 1999 price1986 4.7 3.0 5.5 13.21990 5.1 10.3 8.8 24.11995 7.8 15.6 6.0 29.51999 14.0 44.0 21.5 79.51999a 22.8 56.2 29.3 108.2

Composition (%)1986 36 23 42 1001990 21 43 37 1001995 26 53 20 1001999 18 55 27 1001999a 21 52 27 100

Note: All data are from 22 biotechnology research institutes except for those in the last low that includes29 institutes.Source: Authors’ survey.

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Table 8. Plant Biotechnology Research Expenditure per Staff in the Sampled Institutes, 1986-99

Thousand RMB yuan in current prices Thousand RMB yuan in 1999 pricesYear

Professional Total staff Professional Total staff1986 17.5 7.8 46.4 20.61990 34.0 17.2 59.0 29.81995 54.5 30.1 55.1 30.51999 115.0 66.0 115.0 66.01999a 116.6 65.3 116.6 65.3

Note: All data are from 22 biotechnology research institutes except for those in the last low thatincludes 29 institutes.Source: Authors’ survey.

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Table 9. Research Focus of Plant Biotechnology Programs in China

Crops/traits Prioritized areas

Crops Cotton, rice, wheat, maize, soybean, potato, rapeseed,Cabbage, tomato

TraitsInsect resistance Cotton bollworm and aphids

Rice stem borerMaize stem borerSoybean mothPotato beetle

Disease resistance Rice bacteria blight and blastWheat yellow dwarf and rustSoybean cyst nematodePotato bacteria wiltRapeseed sclerosis

Stress tolerance Drought, salinity, coldQuality improvement Cotton fiber quality

Rice cooking qualityWheat qualityMaize quality

Herbicide resistance Rice, soybeanFunctional genomics Rice, rapeseed and Arabidopsis

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Table 10. Available GM Plant Events in China by 1999

Crop Introduced traitFieldTrial

Environmentalrelease

Commer-cialized

Insect resistance Bollworm (Bt) Yes Yes Yes Bollworm (Bt+CpTI) Yes Yes Yes Bollworm (CpTI) Yes Yes No Bollworm (API) Yes No NoDisease resistance Verticillium & Fusarium (Chi) Yes Yes No Verticillium & Fusarium (Glu) Yes Yes No

1.Cotton

Verticillium & Fusarium (Glu+Chi) Yes Yes NoInsect resistance Stem borer (Bt) Yes Yes No Stem borer (CpTI) Yes Yes No Rice planthopper Yes Yes NoDisease resistance Bacteria blight (Xa21) Yes Yes No Fungal disease Yes Yes No Rice dwarf virus Yes Yes NoHerbicide resistance Yes Yes NoSalt tolerance (BADH) Yes No No

2.Rice

Ac/Ds (rice mutant) Yes No No3.Wheat BYDV resistance & quality

improvement.Yes No No

4.Maize Insect resistance. (Bt) & qualityimprovement.

Yes Yes No

5.Soybean Herbicide resistance Yes Yes No

Disease resistance Bacteria wilt Yes Yes No PVY resistance Yes Yes No Viroid resistance Yes Yes No

6.Potato

Disease resis. & quality improv. Yes Yes No7.Oil rape Disease resistance Yes Yes No

Insect resistance ( Bt or CpTI) Yes Yes Yes->No*8.Tobacco

TMV resistance Yes Yes No

9.Peanut Stripe virus resistance Yes No No

27

Table 10 (Continued…)Available GM plant events in China by 1999.

Crop Introduced traitFieldTrial

EnvironmentalRelease

Commer-cialized

10.Chinese cabbage Turnip mosaic virus resistance Yes No No

CMV resistance Yes Yes YesTMV & CMV resistance Yes No No -Time-altered shelf life Yes Yes Yes

11.Tomato

Cold tolerance (afp) Yes Yes No12.Melon CMV resistance Yes No No

13.sweet pepper CMV resistance Yes Yes Yes

14.Chilli CMV/TMV resistance Yes Yes No

15.Papaya PRSV resistance Yes Yes No

16.Poplar tree Insect resistance Yes Yes No

17.Pertunia Flower-color altered Yes Yes Yes

18. Pogostemun Bacteria wilt resistance Yes No No

*: Commercialized in 1992 but stopped in the middle 1990s due to trade issues.

28

Table 11. Number of Cases Submitted and Approved for Field Trials, Environmental Release, andCommercialization in China from 1997 to 1999

1997 1998 1999 TotalPlant Field trial -- Submitted 7 21 14 42 -- Approved 5 20 20(11+9)* 45 Environmental release -- Submitted 35 16 53 104 -- Approved 29 8 28 65 Commercialization -- Submitted 6 9 30 45 -- Approved 4 2 24 30

Microorganisms Field trial -- Submitted 5 20 14 39 -- Approved 5 20 13 38 Environmental release -- Submitted 2 2 10 14 -- Approved 1 2 6 9 Commercialization -- Submitted 0 0 4 4 -- Approved 0 0 3 4

Animal Field trial -- Submitted 2 0 0 2 -- Approved 2 0 0 2 Environmental release -- Submitted 0 0 0 0 -- Approved 0 0 0 0 Commercialization -- Submitted 0 0 1 1 -- Approved 0 0 0 0

Total -- Submitted 57 68 126 251 -- Approved 46 52 94 192Source: MOA. By July 2000, total number of cases submitted reached 353with 251 cases approved for field trials, environmental releases, andcommercialization.*: Among 20 cases approved for field trials in 1999, nine cases were thoseapplied for environmental release, but approved for additional field trailsonly.

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Table 12: Number of Cases of Approved for Field Trials in China

1997 1998 1999(July) TotalRice Resistant to insects 1 3 9 13 Resistant to diseases 1 3 4 Resistant to salt 0 2 0 2 Others 0 1 1 2

Wheat Resistant to herbicide and

quality improvement1 0 0 1

Maize Resistant to insects 1 1 0 2

Cotton Resistant to insects 0 1 4 5 Resistant to diseases 0 3 1 4 Others 0 0 1 1

Tomato Resistant to diseases 0 0 1 1 Cold-tolerance 0 2 0 2

Tobacco Resistant to insects 0 1 0 1 Resistant to diseases 0 1 0 1

Papaya Resistant to diseases 1 0 0 1

Peanut Resistant to diseases 0 1 0 1

Melon Resistant to diseases 0 1 0 1

Cabbage Resistant to diseases 0 1 0 1

Pogostemun Resistant to disease 1 0 0 1

Total 5 19 20 44

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Table 13. Number of cases approved for environmental release in China, 1997-July 1999

1997 1998 1999 (July) TotalRice Resistant to insects 0 1 1 2 Resistant to diseases 4 1 1 6 Resistant to herbicide 1 1 0 2

Maize Resistant to insects 1 0 3 4

Soybean Resistant to herbicide 1 0 0 1

Cotton Resistant to insects 6 2 6 14

Potato Resistant to diseases 4 1 1 6 Quality Improvement 2 0 0 2

Tomato Resistant to diseases 1 0 0 1 Ripe-delayed (long shelf) 2 1 3 Cold-tolerance 0 0 1 1

Tobacco Resistant to insects 2 1 0 3 Resistant to diseases 2 0 0 2

Sweet pepper Resistant to diseases 2 0 0 2

Poplar tree Resistant to insects 1 0 1 2

Total29 8 14 51

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Table 14. Number of Cases Approved for Commercialization in China, 1997-July 1999.

1997 1998 1999(July) Total

Cotton Resistant to insects 2 0 14 16

Tomato Resistant to diseases 0 1 3 4 Ripe-delayed (long shelf) 1 0 0 1

Sweet pepper Resistant to diseases 0 1 3 4

Petunia Flower-color-altered 1 0 0 1

Total 4 2 20 26

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Figure 2. Flow Chart of Agricultural Biotechnology R&D Funds

Company HTIP

KSEP

NSFCCommittee

MOF

NKLs

973 Plan

CAS 863 Plan

SFTP

CASEFCommittee

Key Project

PBoF

NSFP

PSTF

Request for R&D funding and return flow of fundsFlow of funds

CASEFHTIPKSEP

NSFC:

NSFP:PAAS:PBoF:SFTPKey Project: Stopped in 1998

MOST

Provincial Academy of Agricultural Sciences

Special Foundation of Transgenic Plants

CAASCATACAFi

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Commission

SDPC

China Agricultural Sciences and Education Foundation

Key Scientific Engineering Program

MOA

Provincial Bureanu of Financial

Sciences and Technology Foundation of Province

High-tech Industrilization Program

Natural Science Fundation of China

34

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37

ANNEXESAnnex 1. List and Research Focus of Agricultural Biotechnology Programs Surveyed inChina

I. Programs in Chinese Academy of ScienceI1 Institute of Genetics, Chinese Academy of Sciences(IG, CAS)Biotechnology Program Started in: 1975Address: 3 Datun Road, Chaoyang District, BeijingPost code: 100101Contact Person: Fan ShutianTelephone: 0086-10�64889776Fax : 0086-10�64889382E�mail: Kjc@igt.ac.cn

-New gene isolation and cloning for soybean,rice and cotton-Gene isolation of wheat disease resistance-Genetic engineering of salinity tolerance forrice and wheat-Cell engineering of wheat-Molecular marker assisted selection

I2 Shanghai Institute of Plant Physiology (SIPP), CASBiotechnology Program Started in 1953Address:300 fenglin Road, ShanghaiPost code: 200032Contact Person: Ni JundiTelephone: 0086-21�64042090�6441Fax : 0086-21�64042385E�mail: Hyan@iris.sipp.ac.cn

-Rice functional genomics-Microorganism research-Genetic engineering of plant, soybean, cotton,rice, tobacco, oil rape etc.

I3 Shanghai Bio-engineering Research Center(SBRC), CASBiotechnology Program Started in 1986Address:500 Caobao Road.Xuhui District, ShanghaiPost code: 200233Contact Person: Xu MaotaiTelephone: 0086-21�64700892�2456Fax : 0086-21�64700244E�mail: Mtxu@srcb.ac.cn

-Genetic engineering of microorganisms-Genetic engineering of plant-Monoclonal antibody

I4 Microorganism Research Institute (MRI), CASBiotechnology Program Started in 1985Address: 13 Zhongguancun Beiyitiao,Haidian District,Beijing Post code: 100080Contact Person: Peng XuexianTelephone: 0086-10�62522107Fax : 0086-10�62520912E�mail: Pengxx@sun.im.ac.cn

-New gene cloning and isolation-Plant genetic engineering-Plant bioreactor

I5 Institute of Development Biology (IDB), CASBiotechnology Program Started in 1984Address: 3 Zhongguancun Nanyitiao, Haidian District,BeijingPost code: 100080Contact Person: Qi MingjieTelephone: 0086-10�62555397Fax: 0086-10�62551951

-Functional genomics-Genetic engineering of disease and insectresistance of wheat-Cold tolerance-Transgenic pig development.

38

II. Programs in the Chinese Academy of Agricultural Sciences (CAAS)II1 Biotechnology Research Institute, ChineseAcademy of Agricultural Sciences (BRI, CAAS)Biotechnology Program Started in 1986Address:12 Zhongguancun Nandajie BeijingPost code: 100081Contact Person: Wang QinfangTelephone: 0086-10�68975402Fax : 0086-10�68975402E�mail: Caasbrco@public3.bta.net.cn

-New gene cloning and isolation-Basic research for biotechnology-Functional genomics-Crop genetic engineering of insect resistance-Crop genetic engineering of disease resistance-Genetic engineering of stress tolerance crop

II2 China National Rice Research Institute, CNRRIBiotechnology Program Started in 1981Address: 359 TiyuchangRoad, Hangzhou,ZhejiangProvincePost code: 310006Contact Person: Liao XiyuanTelephone: 0086-571�3371711�2221Fax : 0086-571�3371574

-Rice functional genetics.-Tissue culture of rice, Anther culture,Protoplast culture-Molecular marker assisted selection for ricebreeding.-Genetic engineering of rice

II3 Institute of Plant Protection (IPP), CAASBiotechnology Program Started in 1986Address: 2 West Yuanmingyuan Road. Haidian District,BeijingPost code: 100094Contact Person: Zhang DongshengTelephone: 0086-10�62815909Fax : 0086-10�62896114E�mail: Ippcaas@public.east.cn.net

-Genetic engineering of wheat and cottondisease resistance-Molecular marker assisted selection-Genetic engineering and diagnostic techniqueof potato-Molecular mechanism study of bollwormresistance

II4 Institute of Crop Germplasm Resources (ICGR),CAASBiotechnology Program Started in 1990Address: 12 Zhongguancun Nandajie, Haidian District,Beijing Post code: 100081Contact Person: Gao WeidongTelephone:0086-10�62186639Fax : 0086-10�62186629E�mail: Rmdicgr@ihw.wm.cn

-Crop germplasm identification-Crop biodiversity-Genetic engineering of crop.-Molecular marker assisted selection

II5 Crop Cultivation and Breeding Research Institute(CCBRI), CAASBiotechnology Program Started in 1978Address: 12 Zhongguancun Nandajie ,BeijingPost code: 100081Contact Person: Liang YehongTelephone: 0086-10�68918578Fax :0086-10�68975212

-Genetic engineering of maize, rice and cotton-Tissue culture of rice and wheat-Molecular marker assisted selection

39

II6 Institute of Vegetable and Flower (IVF), CAASBiotechnology Program Started in 1972Address: 12 ZhongguancunNandajie Haidian District,BeijingPost code: 100081Contact Person: Zhu L�Telephone: 0086-10�68919531Fax : 0086-10�62174123E�mail: Ivfcaas@public3.bta.net.cn

-Tissue culture of vegetable and flower plant-Genetic engineering of vegetables-Molecular marker

II7 Institute for Application of Atomic Energy(IAAE), CAASBiotechnology Program Started in 1985Address: 2 West Yuanmingyuan Road, Haidian District,BeijingPost code: 100094Contact Person: Lin MinTelephone: 0086-10�62815874Fax : 0086-10�62891463E�mail: Linmmr@public.east.cn.net

-Agriculture-organism

II8 Oil Crops Research Institute (OCRI), CAASBiotechnology Program Started in 1972Address: 2 Xudong Road,Wuchang District, Wuhan , HubeiProvince.Post code: 430062Contact Person: Liao XingTelephone: 0086-27�86814009Fax : 0086-27�86814009E�mail:W721117@public.wh.hb.cn

-Tissue culture, anther and protoplast culture-Embryo rescue-Molecular marker assisted selection-Genetic engineering of oil crops

II9 Tea Research Institute, Chinese Academy ofAgricultural Sciences (TRI CAAS)Biotechnology Program Started in 1985Address: 1 Yunqi Road,Hangzhou Zhejiang ProvincePost code: 310008Contact Person: Xiong XingpingTelephone:0086-571�6590187Fax : 0086-571�6590056E�mail: Tricaas@mail.hz.zj.cn

-Tissue culture-Molecular marker-Microorganism technology

II10 Silkworm and Silk Industry Research Institute(SSIRI), CAASBiotechnology Program Started in 1986Address: Sibaidu, Zhengjiang, Jiangsu ProvincePost code: 212018Contact Person: Ma XiucuiTelephone:0086-511�5616595Fax : 0086-511�5628183E�mail: Maxiucui@sina.com

-Genetic engineering of silkworm-Molecular marker assisted selection-Microorganism

40

II11 Institute of Bast Fiber Crops (IBF), CAASBiotechnology Program Started in 1971Address: 66 Yinpeng NanLu, Changsha, Hunan ProvincePost code: 413100Contact Person: Zang GongguTelephone: 0086-731�8859586Fax : 0086-731�8884256E�mail: Ibfcbt@public.cs.hn.cn

-Microorganism-Tissue culture-Molecular marker

II12 Fruit Research Institute (FRI), CAASBiotechnology Program Started in 1978Address: AnxuZhuang, Zhenzhou Henan ProvincePost code: 450004Contact Person: Qiao XianshengTelephone:0086-371�6815754Fax : 0086-371�6815771E�mail: Qiao-xsh@371.net

-Agro-bacteria-Virus free fruit propagation-Virus resistance breeding of melon

II13 Sugar Beet Research Institute (SRI, CAAS)Biotechnology Program Started in 1972Address: 345 Dongzhi Road, Hulan County, HeilongjiangProvincePost code: 150501Contact Person: Xu QunTelephone:0086-451�7312095Fax : 0086-451�7312548E�mail: Beet@public.hr.hl.cn

-Tissue culture of sugar beet-Protoplast culture

II14 Cotton Research Institute (CRI), CAASBiotechnology Program Started in 1970Address: 1 Dengta Road, Anyang, Henan ProvincePost code: 455112Contact Person: Yang XiaodongTelephone: 0086-372�2943207Fax : 0086-372�2633452E�mail: Yxdcri@public.hn.cn

-Tissue Culture and Genetic Engineering onCotton-PCR. Diagnostic techniques

II15 Feed Research Institute (FRI), CAASBiotechnology Program Started in 1996Address: 12 Zhongguancun, Nandajie Haidian District,BeijingPost code: 100081Contact Person: Ding QiangTelephone: 0086-10�68975845Fax : 0086-10�68975127E�mail: Fristm@163bj.com

-Genetic engineering of vegetables-Molecular marker assisted selection for maizeand vegetable breeding

41

III. Programs in UniversitiesIII1 Life College, Peking UniversityBiotechnology Program Started in 1990Address: Haidian District, Beijing Post code: 100871Contact Person: Gu HongyaTelephone: 0086-10�62751847

-Arapodopsis functional genomics-Plant genetic engineering of qualityimprovement, virus resistance-Potato quality improvement

III2 Biotechnology Research Institute, ZhejiangUniversity.Biotechnology Program Started in 1986Address: 268 Kaixuan Road, Hangzhou, Zhejiang ProvincePost code: 310029Contact Person: Cheng WeiliangTelephone: 0086-571�6971184Fax : 0086-571�6961525E�mail: Cwl@mail.hz.zj.cn

-Gene cloning and isolation of diseaseresistance-Plant genetic engineering-Molecular marker-Micro-propagation of orchid

III3 National Key Lab of Agricultural BiotechnologyChina Agricultural University (CAU)Biotechnology Program Started in 1987Address: 2 West Yuanmingyuan Road, Haidian District,BeijingPost code: 100094Contact Person:Zhang FanTelephone:0086-10�62893055Fax : 0086-10�62893055

-Genetic engineering of maize and wheat-genetic engineering of pig and chicken

III4 National Key Lab. of Crop Genetic ImprovementCentral China Agricultural University (CCAU)Biotechnology Program Started in 1992Address:Honghu District, WuhanHubei ProvincePost code: 430070Contact Person: Cao CouguiTelephone: 0086-27-87282104Fax : 0086-27-87280016E�mail: Croplab@public.wh.hb.cn

-Rice functional genomics-Cotton cell engineering-Plant tissue culture-Gene isolation and cloning from major crops-Molecular marker

III5 Plant Pathology InstituteNorthwestern S&T University of Agriculture andForestryBiotechnology Program Started in 1988Address: 2 Xinong Road, yangling Shanxi ProvincePost code: 712100Contact Person: Wu YunfengTelephone: 0086-29�7093193Fax : 0086-29�7092559E�mail: Wuyf@public.xa.sx.cn

-Tissue Culture on Garlic, Lily, Apple-Genetic Engineering on Tobacco, SweetPepper-PCR, Diagnostic techniques

42

IV. Programs in Provincial Agricultural AcademiesIV1 Institute of Agricultural Genetics and PhysiologyJiangsu Academy of Agriculture Sciences (IAGP, JCAS)Biotechnology Program Started in 1978Address: 5 Zhonglinjie, Xuanwu District Nanjing, JiangsuProvincePost code: 210014Contact Person: Wang ZhixiaTelephone: 0086-25�4390297Fax : 0086-25�4390297E�mail: Iagp@mail.jans.ac.cn

-Cotton transformation-Plant tissue culture

IV2 Jilin Agricultural Biotechnology Laboratory(JABL) Jilin Academy of Agricultural SciencesBiotechnology Program Started in 1996Address: 6 Xixinghuajie, Gongzhuling, Jilin ProvincePost code: 136100Contact Person: Zhuang BingchangTelephone: 0086-434�6237387Fax : 0086-434�6237387E�mail: Zbchang@hotmail.com

-Soybean molecular marker-Tissue culture-Genetic engineering of soybean and maize-Diagnostic technique

IV3 Biotechnology Research Institute, YunnanAcademy of Agricultural SciencesBiotechnology Program Started in 1992Address: East Jiaochang Road, Kunming,Yunnan ProvincePost code: 650223Contact Person: Li ChengyunTelephone: 0086-871�5174680Fax : 0086-871�5160084E�mail: Chengyun@public.km.yn.cn

-Biotechnology breeding of potato and oil rape-Genetic engineering of disease resistance forrice and maize-Cloning and isolation of virus resistant gene-Potato virus monitoring-Plant bioreactor-Molecular marker assisted selection for cropbreeding-Genetic engineered vaccine for veternary

IV4 Agricultural Biotechnology Research CenterBeijing Academy of Agricultural and Forestry SciencesBiotechnology Program Started in 1998Address: Banjing Road, Haidian District, BeijingPost code: 100081Contact Person: Lei MingTelephone: 0086-10�88441980Fax : 0086-10�88441980E�mail: Leiming57@263.net

-Genetic engineering of vegetables-Molecular marker assisted selection for maizeand vegetable breeding

43

Annex 2. Human and Financial Resources in Agricultural Biotechnology Research

Table 1. Staff numbers of plant biotechnology research in the sampled institutes, 1986-99

Year Professional staff Support staff

Management Research Total Technical Other Total

Totalstaff

1986 82 203 285 80 276 356 641

1987 81 218 299 80 260 340 639

1988 101 257 358 87 273 360 718

1989 109 278 387 91 296 387 774

1990 114 295 409 98 301 399 808

1991 110 298 408 106 310 416 824

1992 127 314 441 102 303 405 846

1993 146 380 526 99 297 396 922

1994 154 370 524 103 304 407 931

1995 164 371 535 111 322 433 968

1996 181 425 606 114 313 427 1033

1997 188 451 639 129 339 468 1107

1998 192 451 643 130 359 487 1130

1999 207 484 691 133 381 514 1205

1999a 264 705 969 233 455 688 1657

Note: All data are from 22 biotechnology research institutes except for those in the last low thatincludes 29 institutes.Source: Authors’ survey.

44

Table 2. Professional research and management staff of plant biotechnology by educationand gender in the sampled institutes, 1986-99

Professional Staff by Education Gender Share(%)Year

Ph.D. MS BS Others TotalFull-time

Equivalent Female Male

1986 5 39 172 69 285 236 33 67

1987 5 47 174 73 299 248 33 671988 13 68 198 79 358 302 33 67

1989 16 79 206 86 387 323 32 681990 31 90 197 91 409 344 34 661991 37 98 184 89 408 346 35 651992 42 105 198 96 441 374 34 661993 58 122 226 120 526 453 32 681994 64 116 239 105 524 445 32 681995 72 112 238 113 535 457 34 661996 92 126 251 137 606 531 37 631997 112 139 260 128 639 561 35 651998 116 145 265 117 643 565 33 671999 141 159 269 122 691 608 33 67

1999a 203 279 343 144 969 874 36 64

Note: All data are from 22 biotechnology research institutes except for those in the last low thatincludes 29 institutes.Source: Authors’ survey.

45

Table 3. Plant biotechnology research budget (million RMB yuan at current value) in thesampled institutes, 1986-99

By sourceYear

Core Project Equipment Commerce Consultant Contract Donors Others Total

1986 1.6 2.0 1.9 0.0 0.0 0.0 0.6 0.0 6.1

1987 1.7 3.3 1.7 0.0 0.1 0.0 0.5 0.0 7.31988 1.9 4.9 1.5 0.0 0.1 0.0 1.0 0.0 9.4

1989 2.0 7.2 1.6 0.0 0.2 0.0 1.1 0.0 12.11990 2.4 7.7 4.7 0.0 0.0 0.0 1.2 0.0 16.01991 2.5 9.0 6.5 0.0 0.0 0.0 2.0 0.0 20.21992 2.8 10.7 2.2 0.0 0.0 0.0 2.5 0.4 18.61993 3.7 13.2 1.6 0.0 0.0 0.0 2.7 0.3 21.61994 4.4 15.9 4.8 0.0 0.0 0.0 3.1 0.4 28.61995 4.8 20.1 3.3 0.1 0.0 0.0 2.6 1.5 32.31996 6.5 26.3 10.6 0.1 0.3 0.2 4.2 1.5 49.71997 7.5 33.2 3.7 0.1 0.0 0.0 5.7 1.7 52.01998 11.1 47.0 7.1 0.2 0.3 0.0 6.3 1.8 73.61999 14.4 60.0 8.1 0.3 1.0 0.1 6.9 2.0 92.8

1999a 19.4 86.9 10.9 0.3 1.3 1.1 7.6 3.3 130.8

Note: All data are from 22 biotechnology research institutes except for those in the last low thatincludes 29 institutes.Source: Authors’ survey.

46

Table 4. Plant biotechnology research budget (million RMB yuan in 1999 price) in thesampled institutes, 1986-99

By sourceYear

Core Project Equipment Commerce Consultant Contract Donors Others Total

1986 4.2 5.4 4.9 0.0 0.0 0.0 1.5 0.0 16.0

1987 4.3 8.1 4.3 0.0 0.1 0.0 1.2 0.0 17.91988 3.9 10.1 3.1 0.0 0.3 0.0 2.1 0.1 19.6

1989 3.5 12.7 2.8 0.0 0.3 0.0 2.0 0.0 21.41990 4.1 13.3 8.1 0.0 0.0 0.0 2.1 0.0 27.71991 4.2 15.2 11.0 0.0 0.0 0.1 3.4 0.0 34.01992 4.4 17.1 3.6 0.0 0.0 0.0 4.0 0.6 29.81993 5.3 18.6 2.3 0.0 0.0 0.0 3.8 0.4 30.41994 5.1 18.4 5.5 0.0 0.0 0.0 3.6 0.5 33.11995 4.8 20.3 3.3 0.1 0.0 0.0 2.6 1.5 32.71996 6.2 25.1 10.0 0.1 0.3 0.2 4.0 1.4 47.31997 7.1 31.3 3.5 0.1 0.0 0.0 5.4 1.6 49.11998 10.7 45.6 6.9 0.2 0.2 0.0 6.1 1.8 71.41999 14.4 60.0 8.1 0.3 1.0 0.1 6.9 2.0 92.8

1999a 19.4 86.9 10.9 0.3 1.3 1.1 7.6 3.3 130.8

Note: All data are from 22 biotechnology research institutes except for those in the last low thatincludes 29 institutes.Source: Authors’ survey.

47

Table 5. Plant biotechnology research expenditures (million RMB yuan in 1999price) by category in the sampled institutes, 1986-99Year Personnel Operating Capital Total

1986 4.7 3.0 5.5 13.2

1987 4.3 4.5 5.0 13.8

1988 4.3 7.9 3.9 16.0

1989 4.0 9.8 3.4 17.1

1990 5.1 10.3 8.8 24.1

1991 5.3 10.4 6.3 22.0

1992 5.6 12.7 6.7 25.0

1993 6.9 14.3 5.8 27.0

1994 8.0 17.6 4.6 30.1

1995 7.8 15.6 6.0 29.5

1996 9.2 19.9 7.1 36.2

1997 10.2 23.0 6.4 39.5

1998 12.4 34.1 11.2 57.7

1999 14.0 44.0 21.5 79.5

1999a 22.8 56.2 29.3 108.2

Note: All data are from 22 biotechnology research institutes except for those in the last lowthat includes 29 institutes.Source: Authors’ survey.

48

Table 6. Plant biotechnology research expenditure per staff in the sampled institutes,1986-99

Thousand RMB yuan at current price Thousand RMB yuan in 1999 priceYear

Professional Total staff Professional Total staff

1986 17.5 7.8 46.4 20.6

1987 18.7 8.8 46.2 21.6

1988 21.5 10.7 44.8 22.3

1989 25.0 12.5 44.3 22.1

1990 34.0 17.2 59.0 29.8

1991 32.0 15.8 53.8 26.7

1992 35.5 18.5 56.8 29.6

1993 36.3 20.7 51.2 29.2

1994 49.6 27.9 57.5 32.4

1995 54.5 30.1 55.1 30.5

1996 62.7 36.8 59.7 35.0

1997 65.5 37.8 61.9 35.7

1998 92.5 52.6 89.7 51.0

1999 115.0 66.0 115.0 66.0

1999a 116.6 65.3 116.6 65.3

Note: All data are from 22 biotechnology research institutes except for those in the last lowthat includes 29 institutes.Source: Authors’ survey.