Original Title: Notice from the General Office of the People’s Government of Shandong Province on Issuing the “Several Measures for Accelerating the Commercialization of Scientific and Technological Achievements”

To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee, earnestly carry out General Secretary Xi Jinping’s important directives on scientific and technological innovation, deepen reforms in the mechanisms for the transformation of scientific and technological achievements, further stimulate the vitality of scientific and technological talent in innovation and entrepreneurship, vigorously develop new-quality productive forces, and accelerate the construction of a science and technology-strong province, the following measures are hereby formulated.

I. Implementing a Separate Management System for Scientific and Technological Achievements Generated in the Course of Employment

(1) Establish a separate management system for scientific and technological achievements generated in the course of employment. Promote universities and research institutes to establish a separate management system for such achievements that is distinct from general state-owned assets. Implement separate ledger management for these achievements and refine the separate management model covering asset valuation and filing, property rights registration, division and confirmation of ownership, use and disposal, and valuation-based investment to form equity.Once scientific and technological achievements generated in the course of employment are converted into state-owned assets through methods such as equity investment, their management shall differ from that of general state-owned assets and shall not be included in the scope of state-owned asset preservation and appreciation. Improve the separate management mechanism for equity formed through capitalized investment, establish disposal systems covering transfer, assignment, exit, and write-off of losses, shorten management chains, simplify approval processes, and implement risk prevention and control measures. (Responsibility lies with the Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Finance according to their respective duties)

(2) Improve the procedures for the transformation of scientific and technological achievements arising from official duties. Support universities and research institutes in determining the value of scientific and technological achievements based on actual conditions through methods such as “agreed pricing plus public notice,” listing on technology trading markets, and auctions, thereby establishing a market-oriented pricing mechanism.For scientific and technological achievements arising from official duties that are intended to be applied for intellectual property rights or are currently in the application stage, if the institution chooses to apply jointly with the achievement’s creator(s) (or team), it may specify the ownership ratio and complete the assignment of ownership rights simultaneously. Promote the optimization of approval processes for the commercialization of achievements arising from official duties in universities and research institutes, implement “one-stop” and “single-window” services for achievement commercialization, and comprehensively enhance the efficiency of achievement commercialization. (The Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Finance shall be responsible in accordance with their respective duties)

II. Deepening Reforms in the Granting of Rights to Scientific and Technological Achievements Arising from Employment

(3) Support the use of surplus funds from industry-sponsored research projects to finance technology transfer. Surplus funds from industry-sponsored research projects shall be treated as income from technology transfer. Support universities and research institutes in exploring technology transfer models that combine surplus funds from industry-sponsored research projects with the valuation and equity contribution of work-related scientific and technological achievements.With the consent of their employing institution, researchers may use methods such as “cash investment + technology investment” to invest in or establish technology-based enterprises that share commercialization proceeds with their employing institution and have clearly defined property rights; such actions shall be regarded as the commercialization of scientific and technological achievements arising from official duties. (The Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Finance shall be responsible in accordance with their respective duties.)

(4) Explore the “transfer of rights” commercialization model. Support universities and research institutes in exploring a model for in-service scientific and technological achievements that combines “granting of rights + transfer + agreed-upon returns,” whereby the retained ownership share is transferred to the achievement creators (teams) through technology transfer.After the achievement creators (teams) obtain full ownership, they shall conduct independent commercialization. Universities and research institutes shall share profits, bear risks, and pay for expenses related to the evaluation of scientific and technological achievements and the maintenance of intellectual property rights in accordance with mutual agreements with the achievement creators (teams). (The Provincial Department of Education and the Provincial Department of Science and Technology shall be responsible in accordance with their respective duties.)

(5) Implement a “use-first, pay-later” system. Encourage and guide universities and research institutes to license scientific and technological achievements to small, medium, and micro enterprises under a “use-first, pay-later” arrangement. Both parties may agree to pay licensing fees through methods such as “zero upfront fees + phased payments + revenue sharing” or “deferred payments,” and support guarantee and insurance institutions in providing relevant services in accordance with the principle of commercial sustainability.(Responsibility lies with the Provincial Party Committee’s Financial Affairs Office, the Provincial Department of Education, the Provincial Department of Science and Technology, the Provincial Department of Finance, and the Shandong Financial Regulatory Bureau, in accordance with their respective duties)

III. Building a High-Caliber Team of Technology Managers

(6) Deepen reforms in the professional title evaluation and incentive mechanisms for technology transfer personnel. Encourage universities and research institutions to allocate a certain proportion of their independently evaluated professional technical positions to establish roles dedicated to the transformation of scientific and technological achievements. Develop evaluation criteria that align with the professional characteristics and job requirements of technology transfer, conduct independent evaluation and appointment of professional titles, and streamline the career advancement pathways for technology transfer personnel.Strengthen management and service capabilities for the commercialization of scientific and technological achievements in universities and research institutions; increase the allocation of technology transfer personnel; and establish performance evaluation and internal remuneration systems that reflect the nature of the work and actual contributions. (Responsibility lies with the Organization Department of the Provincial Party Committee, the Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Human Resources and Social Security, in accordance with their respective duties)

(7) Improve mechanisms for leveraging the role of high-level technology managers. Regularly organize the “Technology Managers in Shandong” initiative. Establish a provincial talent pool for the transformation of scientific and technological achievements, categorized by field and type, and annually recruit a group of high-level technology managers from both within and outside the province to join the pool. Support them in establishing proof-of-concept centers, pilot production bases, and technology transfer service agencies in Shandong.Leveraging the Taishan Industrial Leading Talent Program, increase support for high-level technology managers. Include eligible high-level technology managers within the scope of services and benefits provided by the “Shandong Talent Benefits Card.” (Responsibility lies with the Organization Department of the Provincial Party Committee, the Provincial Department of Science and Technology, the Provincial Department of Industry and Information Technology, and the Provincial Department of Human Resources and Social Security, in accordance with their respective duties)

IV. Building Platforms for the Commercialization of Scientific and Technological Achievements

(8) Develop the Shandong Science and Technology Market to high standards. Accelerate the development of the Shandong Science and Technology Market, deepen the exploration of mechanisms for integrating the “four chains” (talent, education, industry, and innovation) and the design of service products, guide increased investment from social capital, support the establishment of nationally renowned technology transfer and venture capital institutions, and support technology managers in practicing through the Shandong Science and Technology Market and charging commissions at market rates.Leveraging the Shandong Science and Technology Market, establish a “Database of Transferable Achievements” for universities and research institutes and a “Database of Demand for Scientific and Technological Achievements” for enterprises to strengthen supply-demand matching and guide organized technology transfer. Support universities and research institutes in identifying patents developed with public funding that have not been implemented for over three years, and publish them on the Shandong Science and Technology Market through open licensing. (Responsibility lies with the Provincial Department of Science and Technology, the Provincial State-owned Assets Supervision and Administration Commission, the Provincial Market Regulation Bureau, and Jinan City, in accordance with their respective duties)

(9) Accelerate the construction of pilot production bases and proof-of-concept centers. In accordance with the requirement to develop new-quality productive forces tailored to local conditions, optimize the layout of a batch of pilot production bases and incorporate eligible pilot production resources into the management of the “Shandong Provincial Large-Scale Scientific Instrument and Equipment Collaborative Sharing Network.” Support qualified universities, research institutes, and enterprises in establishing proof-of-concept centers; for recognized provincial-level proof-of-concept centers, provide annual support based on performance evaluation results. (Responsibility: Provincial Department of Science and Technology)

V. Vigorously Support the Commercialization of Achievements by Science and Technology Talents

(10) Establish channels for talent exchange between universities, research institutes, and enterprises. Encourage universities and research institutes to strengthen cooperation with enterprises in talent recruitment and promote the “university-hired, enterprise-utilized” model for joint talent recruitment and sharing. Support scientific and technical personnel from enterprises and universities/research institutes in exploring two-way part-time exchanges. Through provincial-municipal coordination, recruit more than 1,000 high-level innovative talents from universities and research institutes for enterprises within five years to serve as “Vice Presidents of Science and Technology” or “Deputy Chief Scientists,” thereby driving these talents to engage deeply in enterprises for technological breakthroughs and the commercialization of research outcomes.(Responsibility lies with the Provincial Party Committee Organization Department, the Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Human Resources and Social Security, in accordance with their respective duties)

(11) Encourage scientific and technological talent to transfer and commercialize scientific and technological achievements. Each year, attract and cultivate a group of high-end innovation teams to establish operations in our province, providing support on a case-by-case basis. Optimize and enhance the “Entrepreneurship in Qilu · Win-Win Future” High-Level Talent Entrepreneurship Competition, expand and improve mechanisms for holding competitions outside the province and overseas, increase support for entrepreneurial projects, and attract domestic and international scientific and technological talent to commercialize and implement scientific and technological achievements.We will encourage scientific and technological talent from leading universities and research institutions both within and outside the province to establish or lead technology-based enterprises in our province with scientific and technological achievements featuring independent intellectual property rights. Such projects will be included in the scope of equity investment support for the commercialization of scientific and technological achievements in accordance with regulations, and will be provided with up to 5 million yuan in fiscal equity investment support. (Responsibility lies with the Organization Department of the Provincial Party Committee, the Provincial Department of Science and Technology, and the Provincial Department of Finance, in accordance with their respective duties)

VI. Promoting the Promotion and Application of Innovative Products

(12) Encourage the Priority Procurement of Innovative Products. Compile and publish a provincial catalog of recommended demonstration applications for innovative products. In accordance with government procurement policies, vigorously develop cooperative innovation procurement and other methods to encourage the priority procurement of scientific and technological achievements and innovative products. (Responsibility lies with the Provincial Department of Science and Technology, the Provincial Department of Industry and Information Technology, and the Provincial Department of Finance, in accordance with their respective duties)

(13) Strengthen the development of application scenarios for the transformation of scientific and technological achievements. Relying on platforms such as the Shandong Science and Technology Market, establish technology experience and promotion centers that are demonstrable, experiential, and scalable. Expand application scenarios for scientific and technological achievements, select more than 10 benchmark demonstration scenarios annually, and designate a group of scenario-application-friendly units each year to accelerate the transformation of scientific and technological achievements driven by application scenarios. (Responsibility: Provincial Department of Science and Technology)

VII. Enhancing the Role of Science and Technology Finance in Empowering the Commercialization of Achievements

(14) Guide social capital to increase investment in the transformation of scientific and technological achievements. Promote state-owned venture capital institutions to establish and improve systems for investment decision-making and performance evaluation, thereby better leveraging their key role in investing early, in small-scale enterprises, for the long term, and in hard technology. Launch pilot programs for “grant-investment-loan” linkage and “investment-first, equity-later” models to support a group of early-stage technology-based small and micro enterprises with innovative achievements.Support the Provincial New and Old Growth Drivers Transformation Fund in collaborating with frontline angel investment institutions, technology incubation platforms, and leading enterprises in industrial chains to establish sub-funds, thereby increasing support for the commercialization of scientific and technological achievements. Encourage universities and research institutes to independently establish venture capital funds to support the commercialization of scientific and technological achievements. (Responsibility lies with the Provincial Development and Reform Commission, Provincial Department of Education, Provincial Department of Science and Technology, Provincial Department of Finance, Provincial State-owned Assets Supervision and Administration Commission, and Provincial Market Regulation Bureau according to their respective duties)

(15) Optimize financial services for the commercialization of scientific and technological achievements. Support financial institutions in developing dedicated credit products for intellectual property pledge financing. Establish and improve a regularized roadshow mechanism for scientific and technological achievements, and strengthen full-chain integration of technology service sectors such as consulting, evaluation, and financing. Fully leverage the roles of the Provincial Science and Technology Finance Credit Enhancement Platform and initiatives such as “Lu Ke Dai” and “Lu Ke Dan” to alleviate the difficulties and high costs of financing for technology-based small and medium-sized enterprises in commercializing their achievements.(Responsibility lies with the Provincial Party Committee’s Financial Affairs Office, the Provincial Department of Science and Technology, the Provincial Market Regulation Bureau, the People’s Bank of China Shandong Branch, and the Shandong Financial Regulatory Bureau, in accordance with their respective duties)

VIII. Reforming the Evaluation and Incentive Mechanisms for the Commercialization of Scientific and Technological Achievements

(16) Strengthen performance evaluation of the commercialization of scientific and technological achievements. Establish a reporting system and performance evaluation framework for the commercialization of scientific and technological achievements in universities and research institutions. Integrate the commercialization of scientific and technological achievements throughout the entire process of science and technology project management; in applied science and technology projects, clearly define the commercialization tasks for project contractors and establish evaluation targets directly related to commercialization. (Responsibility lies with the Provincial Department of Education, the Provincial Department of Science and Technology, and the Provincial Department of Finance according to their respective duties)

These measures shall take effect from the date of issuance.