International researchers test an AI-powered product at a laboratory of Zhejiang University to advance the process of transformation. (PHOTO: VCG)

By CHEN Chunyou & JIANG Yun

Recently, the first local specification on trading scientific and technological achievements was released in east China's Zhejiang province. It was formulated by Zhejiang Science and Technology Department (ZSTD), Zhejiang Institute of Standardization, Zhejiang University of Technology and L&H Law Firm.

It clarifies basic principles, requirements and procedures for trading activity. Of note is that a cooperative pilot mechanism is introduced as a new market-based pricing trading mode, in addition to the traditional agreement pricing, listed transaction and auction.

Under this mechanism, research achievements from universities and research institutes can be piloted in enterprises, and enterprises can use these achievements for free after being authorized in a given time.

Draw on past experience

The specification is established based on the experience of China (Zhejiang) Online Technology Market, a platform launched in 2002, which pioneered the model of trading and promoted close cooperation between industry and research.

In 2012, the online market tried to auction research achievements for the first time. Over the last decade, this mechanism has gained practical experience.

During the transfer and commercialization process, small and medium-sized enterprises or enterprises based in mountainous and county-level regions could not afford the costs and risks in the past.

In order to lower the barriers of entry for piloted enterprises, in October 2021, Zhejiang explored the mechanism for advancing the transfer and commercialization. Universities and research institutes are motivated to pilot their research results at small and medium-sized enterprises from 26 counties in mountainous areas of the province.

For example, Zhejiang Chuangxin Auto Air-Conditioner Co., Ltd. in Longquan, Lishui city, cooperated with Wenzhou University and Zhejiang Normal University, and was allowed free use of the two universities' research achievements, worth more than three million RMB, for two consecutive years.

This can better protect the interests of both sides, and increase their willingness and confidence in cooperation, said Liao Xuqing, vice director at Lishui Science and Technology Department.

Introduce a digital app

Also in 2022, a digital trading application, co-developed by ZSTD, Zhejiang Provincial Department of Finance, and Hangzhou Dianzi University (HDU), was rolled out.

It covers many user-friendly functions, including online applications for commercialization, contract approval, contract registration and tax exemption registration, along with the registration of income distribution, which promote the technology flow and improve the transferring efficiency.

According to Li Hu, a head of the industry-university-research cooperation department at HDU, the specification offers a systematic guidance for this application and other related online transaction platforms.

By August 2022, more than 300 research achievements had been commercialized through this mechanism. They created new development conditions, facilitated enterprise development, and improved people's living standards, especially in impoverished regions.