Chinese University-Industry Partnerships in Cleantech

Matthew Williams

Imitation of Western Higher Ed.

From Soviet-style model to comprehensive universities

Increased focus on research outcomes Technology transfer, spinoffs and startups University science parks Formal collaboration with corporations

1980's Policy Steps

1984 MOST initiatives—National Key Laboratories Development, Key Science Projects, research center development

National Natural Science Foundation—1986--encourage basic and applied research

1990's Policy Steps

211 Program—MOE 1995—institutional capacity building for research

985 Program—MOE 1998—make China's top universities “world class” in research

973 Program—MOST 1997—enhance basic research in agriculture, energy, information, resources, environment, population and health, and materials

2000's Policy Steps

2001—National Technology Transfer Centers created at 6 key universities (MOE)

2001—“University enterprise reform”--ownership and management reform of university affiliated enterprises

Obstacles to Commercialization

Corruption Poor patent protection Weak incentives for research/disclosure Geographic disparity Inconsistent licensing policies between and

within universities Lack of full-scope tech transfer offices

Unique Institutional Characteristics

University affiliated enterprises—Lenovo, Founder, Ziguang

Holdings companies to manage patents and spinoffs

Strong role for S&T offices

Role of S&T Offices

The primary institutional apparatus for licensing, sponsored research, and commercialization

Serves the function of a western TTO but lacks: Access to incubation programs Access to investors and VC Legal expertise in licensing Industry connections for matchmaking Personnel

Universities as Enablers of Industry: Shuangliu County

New Energy Industrial Cluster approved in 2010 by NDRC

PV development since 2004 PV, wind, nuclear, solar thermal 30bn output by end of 2012; 100bn by 2017 26 new energy projects; 63.5bn yuan

Shuangliu's Key Advantages

Transportation: adjacent to airport, Chengdu-Kunming railway, three highways

Central, provincial and county-level support for development of new energy cluster; 400m RMB in local investment

30 research institutions and 7 universities

Sichuan University Institute of CSP Technology

Started in 2005 to aid the Kangda company in CSP research

5 patents developed; 2 pending 10+ professors directly affiliated, 17-18 others

indirectly collaborate Focuses on development of CSP coatings and

collector tube technology

CSP Parabolic Trough

CSP Collector Tube

Connections to Industry

Chengdu Xi Guang Dianzi—vacuum tube company situated in Xindu

Glass tube coating Steel pipe coating

4 former partnerships—automatic control systems and PT design

Zhongguo Hangkong Keji Jituan 7111 factory in Wen Zhang biggest collaboration to date

P&L Sharing

Negotiated on a case-by-case basis according to project inputs, difficulty, and risks

Kangda almost wholly owns patent—university provided people, equipment, and tech support

SCU wholly owns patent for 7111 affiliated project; SCU invested more

1-2% of patents directly reinvested into the institute

Internal and External Obstacles

S&T Department as ineffective intermediary Lack of legal expertise Lack of resources due to geographic disparity Inability to apply for funds from national

foundations due to publication requirements Industrial barriers to commercialization

Dongfang Electric Corporation

One of China's largest producers of power generators

Based in Chengdu, Sichuan 28,000+ employees State-owned enterprise Last year $4.8bn sales

Overview of DEC-Uni Collaboration

Nearly 40 partnerships around China Usually partnerships for basic research; applied

research capacities in-house Cleantech-related collaborations include:

chemistry, computer and materials sciences; automatic control systems; energy storage systems; fuel cells; biomass; PV; CSP

How Collaboration Starts

Many DEC employees are graduates of SCU—providing informal links to professors, administration, and graduate students

DEC engineers issue calls for proposal Well-known scientists formally sought out for

contract research or employment Professors are not sought out “randomly”

because DEC is SOE, has stakeholders and excellent in-house abilities

Process of Creating Partnerships

Assess mutual interest, quality of communication, and ability to negotiate to assess partnership suitability

Inside and outside consultants evaluate professor based on standard criteria based on project size and ability of professor

Results of a standardized “vertical report” determine whether partnership goes forward

DEC abilities are low but interest is high

DEC Investment Criteria

Project is commercializable within 5 years; if not, DEC follows research to wait for opening

Once DEC chooses to invest, it will pay 10k-300k RMB for a single report

At SCU, all projects are based on a 5 year commercialization timeline; demos must be possible within 3 years

DEC P&L Guidelines

Negotiated either before or after the project New research allows greater flexibility

“Old” research: DEC will wholly own patent New projects: professor/uni will own shares of

new company but not the patent If prof/uni owns patent before partnership, DEC

will purchase in exchange for shares Or, the patent-owning professor is hired outright

Conclusion: Future UIR Drivers

High cost of international IP; complicated relationships with foreign companies

In-house limitations, especially in smaller enterprises

Increasingly streamlined S&T departments Well-known need for genuine technology

transfer offices