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Improve operating mechanism of industrial technology alliance (No 133, 2014, Total 4632)


By Tian Jietang, Department of Techno-Economic Research's "Policy Research on Improving Basic Industrial Capacity" Group, Development Research Center of the State Council (DRC)

Report No 133, 2014 (Total 4632)


An industrial technology alliance is one of the most common organizational forms in some market economy countries to work for a technological breakthrough. But, industrial technology alliances are still in the infant stage in China. They can be broken into three categories: an independent legal person alliance with strong government support, a non-corporate alliance with governmental department support, and a spontaneous technology breakthrough alliance.

There are some problems with alliance organization management and operations. For instance, there is no clear boundary or distinction between an alliance and an association. The purpose of the alliance is to get government backed projects, and research funds seldom come from alliance members. And, the alliance is congested, with quite a few members, making it difficult to organize research effectively, and a spontaneously organized alliance lacks support.

The country should improve the alliance organization and operations through greater coordination and by making a clear distinction in functions between the association and alliance, by changing the way it supports the alliance, and by encouraging spontaneously organized alliances.