Wednesday, April 10, 2013

China – The Sleeper Awakens by Steve Blank

China – The Sleeper Awakens (Part 1 of 5) | Steve Blank: "Building China’s Science and Technology infrastructure

Steve Blank was in China for a week to promote the Mandarin language version of his Startup Owners Manual. But he's writing a fascinating series of blogposts on the trip, which also examines how Beijing has moved ahead so fast, to the point where it is rivalling Silicon Valley.

Science and startups have come a long way since the 1980’s when the Chinese government owned everything and controlled it through a central planning system.  But before startups could happen, China’s basic science, technology and finance infrastructure and ecosystem needed to be built.  Here’s how a national policy for science and technology emerged.
Beginning in the 1982, China started a series of science and technology programs in five areas: support of basic research, high technology R&D, technology innovation and commercialization, construction of scientific research infrastructure, and development of human resources in science and technology.
The majority of the science and technology programs are driven by MOST (Ministry of Science and Technology) and NSFC (National Natural Science Foundation). As we’ll see later, the MOF (Ministry of Finance) also has had a hand in funding new ventures.

The diagram below from OECD’s Report on China’s Innovation Policy puts the ministries involved in science in context. (Note that it does not show the military technology ministries.)



  • Basic researchNational Natural Science Foundation (equivalent to the U.S. National Science Foundation,) ~$1.75 billion budget. The 973 program (National Basic Research Program) part of the Ministry of Science and Technology.
  • High technology R&D863 Program (State High Technology R&D Program) headed by ex leaders of Chinese strategic weapons programs, and the National Key Technology R&D Program.
  • Technology innovation and commercializationNational New Product Programthe Spark program for rural innovation, and probably the most important one for startups in China , the Torch Program
  • Science research infrastructure:  National Key Laboratories Program, and the MOST program for the construction of research facilities, R&D databases, and a scientific research network
  • Development of human resources in science and technology: Programs for attracting returnees or overseas Chinese talent: from the Ministry of Education – the Seed Funds for Returned Overseas Scholars, Chunhui Program, and the Cheung Kong Scholar Program. From the Ministry of Personnel – the Hundred Talents Program. From the National Science Foundation – the National Distinguished Young Scholars Program.
I encourage you to read the article in full. I'm looking forward to this tales of the China’s Torch Program, the largest government-run entrepreneurial program in the world.


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