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Extra info for A Decade of Reform: Science & Technology Policy in China

Example text

The March 1985 Decision on the Reform of the Science and Technology Management System represented an effort to sum up and formalize many of the reform experiments of the early 1980s and to push the S&T-system reform to higher levels. Key concepts in reform thinking throughout the 1980s that were incorporated in the Decision were that market mechanisms should be substituted for administrative ones in the S&T system, where possible and appropriate, and that S&T reforms should be harmonized with the broader ongoing economic and enterprise-management reforms.

Other stakeholders and the financing functions of the Chinese NSI. Financing functions (policy instruments) Stakeholders R&D institutions Academies Government institutes (state, provincial, and municipal) Universities Government grants cover most of staff salaries A major source of R&D support Enterprises Government budgets Grants Loans Major recipients Important recipients Some get National institutes Possible under some government support; may get some; circumstances others are cut off others are less likely to SOEs TVEs Many need recurring subsidies Not eligible Spin-offs and NTEs Not eligible Joint ventures Not eligible Some may get subsidized loans Interest rates may be subsidized Can, in theory, Eligible to have compete; a few are interest paid by successful government if located in a hightech development zone Eligibility not clear Financing functions (policy instruments) Stakeholders R&D institutions Academies Government institutes (state, provincial, and municipal) Universities Enterprises SOEs TVEs Spin-offs and NTEs Joint ventures Contracts Tax incentives Self-financing schemes Important recipients May be eligible in Revenues from some some circumstances spin-off companies Important source of Not clear under what Some get into revenue; some conditions they are production activities depend entirely on eligible to receive to generate revenue contracts incentives for survival A second important Revenues from some source of R&D spin-off companies support Some award contracts for R&D New facilities in Profitable ones are designated zones are self-financing eligible Should become selffinancing Eligible for most- Should become selffavoured tax financing treatment in designated high-tech development zones Eligible for Have to be selfinvestment financing incentives Note: NSI, national system of innovation; NTE, new technology enterprise; R&D, research and development; SOE, state-owned enterprise; TVE, township and village enterprise.

Central-local relations in China have always been very complex, and they appear to be becoming more so. As a result of decentralization decisions that go back to the 1950s, local governments (provinces, cities) have substantial powers. Nominally, China is a unitary state (not a federation) in which powers of local government are delegated from the centre. The organization of local government thus in many ways resembles that of the centre, with local commissions and industrial bureaus having roles analogous to central commissions and ministries.

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