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Sergio C. Trindade SE 2 T International, Ltd strindade@alum.mit

STI Global Forum Building Science, Technology, and Innovation Capacity for Sustainable Growth and Poverty Reduction Managing Technological Change and Transfer in China: The Case of the ERCs. Sergio C. Trindade SE 2 T International, Ltd strindade@alum.mit.edu

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Sergio C. Trindade SE 2 T International, Ltd strindade@alum.mit

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  1. STI Global ForumBuilding Science, Technology, and Innovation Capacity for Sustainable Growth and Poverty ReductionManaging Technological Change and Transfer in China:The Case of the ERCs Sergio C. Trindade SE2T International, Ltd strindade@alum.mit.edu The World Bank, CIDA, DFID, GRA, IADB, SIG, UNCTAD, and UNESCO Washington, DC 14 February 2007

  2. The S&T Loops Research to Add universal knowledge Level of universal knowledge New universal knowledge Level of the economy Research to add economic value Innovation

  3. ERC is a misnomer • China: 5,000 research institutes, 10 million people • Reward system based on scientific recognition awards • Not financial return • Too many scientific awards, too little innovation • Agricultural reform: income shift to rural areas sprouting the TVEs: rural industrialization, ToT, negative environmental impacts • TVEs became manufacturing platforms for the world • Policy reforms: corporate law, equity ownership, people’s mobility, IPR, standards and norms,conversion of military industries to civilian markets • Less tha 100% state funding of state research institutes • Role of Mme. Ma Dexiu at the State Planning Commission (now State Development and Planning Commission) • Role of the World Bank (W. Vergara and L. Hale)

  4. ERC Objectives • Support government technology policy and institutional reform • Promotion of development/adaptation/ adoption of clean, productivity enhancement technologies • Acceleration of diffusion/adaptation of technology in China and abroad • Enabling research institutes to become more market oriented technology companies, especially environmentally benign technologies • Strengtheningpublic services, nrms and standards, information dissemination, and enforcement of technical regulations

  5. Basic Concept of ERC: Technology Transfer Corporation Innovation in the domestic and foreign markets Knowledge input Knowledge packaging University ERC New products & services via industry Research Institute Industry: domestic And foreign • ERC incorporated separately from sponsor, as a shareholding LLC. • ERC employees can be shareholders • ERC can go bust

  6. ERC: World Bank Program • Some 50 ERCs funded at $ 400 million • World Bank loan for $ 200 million • All fields and markets • Inception in 1992 • ICR – Implementation Completion Report in 2003

  7. Staged Process • Conceptualization • Loan agreement • Training • Physical implementation • Business training • Business implementation

  8. ERC Issues • Reform turmoil • Paradigm shift: from sci loop to technology loop • Pressure to earn revenue to pay out loans (minifactories) • Attachment to own technology • Best scientist, not necessarily the best administrator • Seen by some as a device to expand sponsoring organizations

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