On December 25, 2008, the National Development and Reform Commission (NDRC), the State Intellectual Property Office (SIPO), and seven other central government agencies jointly issued Several Policies on Promoting the Industrialization of Independent Innovative Products, the Policies). The Policies are consistent with the State Council’s plan to implement the Outline of the National Long- and Medium-Term Program for Scientific and Technological Development (2006-2020) 2006-2020?). The Policies aim to promote the translation of scientific and technological advances into practical, productive forces.  

The Policies encourage the industrialization of independent innovative products and the attainment of patents in core areas, such as information, biology, aeronautics, new materials, new energy, modern agriculture, advanced manufacturing, energy saving, emission reduction, and ocean development.  

To encourage enterprises’ investment in independent innovations, the Policies call for preferential tax treatment on the industrialization of independent innovative products.  

The Policies provide that the expenditures for researching and developing new technologies, products and techniques may be calculated and deducted in the calculation of the taxable income amount in accordance with relevant tax laws and regulations. In addition, certain industrialized, independent innovative products may enjoy preferential import tax treatment.  

According to the Policies, entities that use public finance funding to conduct independent innovative projects must disclose to the public (on the Internet or through other means) the projects and the transfers of related IP rights and technology, unless such disclosures are prohibited by law. The Policies call for improvements to declassifications of scientific and technological developments related to national defense, and promote the utilization of these developments for civilian purposes.  

The Policies call for stronger financial support for the industrialization of independent innovations. Various levels of the government will invest more heavily on these projects, and the government will encourage non-governmental parties to invest venture capital in the industrialization of independent innovations. Furthermore, they urge commercial banks to more actively support projects involving the industrialization of independent innovations through loans.  

The Policies require that the intellectual property (IP) authorities work with other government agencies to improve the regulatory system for the transfer of IP rights and technology and the IP protection enforcement, and to establish an intermediary service system regarding the industrialization of independent innovative products. Through the implementation of the Policies, China encourages higher education institutions, scientific research institutes and enterprises to be the principal entities in activities related to independent innovations. Moreover, IP authorities, together with other government agencies, are called on to guide and support these entities in creating and industrializing independent innovative products through the transferring of rights and licensing.