Chapter I General Provisions

Article 1 This Law is enacted in accordance with the Constitution with a view to promoting the progress of science and technology, bringing into play the role of science and technology as the primary productive forces, and promoting the transformation of scientific and technologic advances into practical productive forces, in order that science and technology shall render service to economic and social development. Article 2 The State upholds the scientific outlook on development, implements the strategy of invigorating the country through science and education, and applies to scientific and technological work the guidelines of encouraging independent innovation, making giant strides in major fields, supporting development and taking the lead in future fields, in order to establish a national innovation system and build an innovation-oriented country. Article 3 The State guarantees the freedom of scientific research and technological development, encourages scientific exploration and technological innovation and protects the legitimate rights and interests of scientists and technicians.

The whole society shall respect labor, knowledge, talent and creation.

Schools and other institutions of education shall adhere to the principle of integration of theory with practice, pay attention to helping the educated develop the ability to think independently, to practice and innovate, and implant in them the scientific spirit of pursuing truth, advocating innovation and seeking truth from facts. Article 4 Economic and social development shall rely on science and technology, and scientific and technological progress shall serve economic and social development.

The State encourages scientific research and technological development, promotes the application of science and technology to transformation of traditional industries and development of high and new technology industries and social undertakings. Article 5 The State develops undertakings for popularization of science and technology, in order to disseminate scientific and technological knowledge and raise the scientific and cultural qualifications of all citizens.

The State encourages government departments, enterprises, institutions, public organizations and citizens to participate in and support activities for progress of science and technology. Article 6 The State encourages the combination of scientific research and technological development with higher education and industrial development, and encourages the crossed merging and mutual promotion of natural science with the humanities of social sciences.

The State strengthens the scientific and technological cooperation between different regions, trades and domains, and assists and supports the ethnic autonomous regions, and outlying or poverty-stricken areas in their efforts to make progress in science and technology.

The State strengthens the connection and coordination of military and civilian scientific and technological plans, promotes the mutual exchange and two-way transfer of military and civilian scientific and technological resources and of demands for technological development, in order to develop the technologies for use by both the military and civilian. Article 7 The State shall draw up and carry out the strategy for intellectual property rights, establish and improve the system of intellectual property rights, create the social environment in which intellectual property rights are respected, and protect intellectual property rights according to law, in order to stimulate independent innovation.

Enterprises, and institutions, and scientists and technicians shall enhance their awareness of the importance of intellectual property rights, increase their ability to innovate independently, and enlarge their capability to exercise, protect and manage intellectual property rights. Article 8 The State establishes and improves an appraisal system for science and technology conducive to independent innovation.

The appraisal system for science and technology shall be applied through classified appraisal on the basis of the characteristics of different scientific and technological activities and in adherence to the principles of fairness, impartiality and openness. Article 9 The State shall increase its input of government funds, and formulate, among other policies, industrial, taxation, financial and governmental procurement policies to encourage and give guidance to the input of social funds, and push forward sustained and stable increase of funds for scientific research and technological development by all sectors of society. Article 10 The State Council shall lead the nationwide work for progress of science and technology, formulate plans for scientific and technological development and determine the major scientific and technological projects of the country and other major projects closely related to science and technology, in order to guarantee balance between scientific and technological progress and economic and social development.

Local people’s governments at various levels shall adopt effective measures to promote progress of science and technology. Article 11 The administration department for science and technology under the State Council shall be responsible for the macro-management and overall coordination of the work for scientific and technological progress nationwide; and the relevant departments under the State Council shall, within the scope of their respective duties, be responsible for the work related to scientific and technological progress.

The administration departments for science and technology under the local people’s governments at or above the county level shall be responsible for the work for scientific and technological progress within their respective administrative areas; and the relevant departments under the said people’s governments shall, within the scope of their respective duties, be responsible for the work related to scientific and technological progress. Article 12 The State shall set up a coordinate mechanism for scientific and technological progress, which shall serve the study of major issues in the work for scientific and technological progress, coordinate the establishment of and mutual connection between the national scientific and technological fund and the planned national scientific and technological projects, and coordinate such important matters as the allocation of scientific and technological resources for military and civilian use, the integration of the scientific research and technological development institutions, as well as the combination of scientific research and technological development with higher education and industrial development. Article 13 The State shall improve the rules and procedures for policy-making with respect to science and technology, set up standardized consultation and policy-making mechanisms, in order that the policy-making process is more scientific and democratic.

In the process of formulating development plans and major policies for science and technology and determining major scientific and technological projects and major projects closely related to science and technology, the opinions expressed by scientists and technicians shall be heeded fully, in order to make scientific policy-decisions. Article 14 The Government of the People’s Republic of China shall promote scientific and technological cooperation and exchange with the governments of other countries and international organizations, and encourage scientific research and technological development institutions, institutions of higher educations scientists and technicians, scientific and technological public organizations as well as enterprises and institutions to carry out international scientific and technological cooperation and exchange according to law. Article 15 The State shall establish a system of rewards in the fields of science and technology. Rewards shall be provided to organizations and individuals that have made important contributions in promoting scientific and technological progress. The specific measures shall be formulated by the State Council.

The State shall encourage organizations and individuals inside or outside of China to establish rewards for scientific and technological projects and give such rewards for progress made in science and technology.

Chapter II Scientific Research, Technological Development and Application of Science and Technology

Article 16 The State shall establish a natural science fund to finance basic research and frontier science exploration and help people become scientists and technicians through training.

The State shall establish an innovation fund for the small and medium-sized science- and technology-oriented enterprises to finance small and medium-sized enterprises in technological innovation.

The State may, when necessary, establish other funds to finance activities for scientific and technological progress. Article 17 An entity that is engaged in the following activities shall enjoy preferential tax policies in accordance with the relevant regulations of the State:

(1) engaging in technological development and transfer, and providing technological advice and services;

(2) importing devices for scientific research or technological development, which cannot be produced at home or devices that can be produced at home but the properties of which fail to satisfy the requirements;

(3) importing key equipment, raw and semi-finished materials or components and parts, which cannot be produced at home, for the launching of the major special scientific and technological projects of the State or major projects covered by national scientific and technological plans; or

(4) engaging in other activities for scientific research and technological development, or application of scientific and technological advances as provided for in laws and relevant State regulations.

Article 18 The State shall encourage financial institutions to carry out the business of hypothecation of intellectual property rights, encourage and give guidance to such institutions in supporting the application of scientific and technological advances and the development of high and new technology industries by granting loans, etc., and encourage insurance agencies to introduce insurance products in light of the need for development of high and new technology industries.

Policy-oriented financial institutions shall, within the scope of their business, give priority to the application of scientific and technological advances and the development of high and new technology industries in offering financial services.

Article 19 The State shall abide by the principle of combining service rendered by scientific and technological activities to national goals with encouragement of free explorations, make far-sighted arrangements, and develop basic research, research of frontier technologies and technological research for public welfare and support sustained and stable development of the same.

Scientific research and technological development institutions, institutions of higher education, enterprises and other institutions as well as citizens shall, in accordance with law, have the right to independently select subjects for basic research, research of frontier technologies and technological research for public welfare.

Article 20 Patents of invention obtained in projects covered by the scientific and technological fund established with government funds or by scientific and technological plans, copyrights of computer software, patent rights of wiring design of integrated circuits and rights of new plant strains shall, except where national security and interests and vital public interests are involved, be granted to the authorized undertakers of projects according to law.

Project undertakers shall, according to law, exercise the intellectual property rights provided for in the preceding paragraph and, at the same time, take protective measures, and shall submit annual reports on such exercise and protection to project administration authorities; if they fail to exercise their rights within the reasonable time limit, the State may do it without compensation, or may permit another person to do it with or without compensation.

For the benefit of national security and interests or vital public interests, the intellectual property rights, provided for in the first paragraph of this Article, granted to project undertakers according to law may be exercised by the State without compensation, or the State may permit anther person to do it with or without compensation.

The benefits arising from the exercise of the intellectual property rights, provided for in the first paragraph of this Article, shall be distributed among the project undertakers in accordance with the provisions of relevant laws and administrative regulations; and where such provisions are lacking in laws, or administrative regulations, the benefits shall be distributed as agreed upon.

Article 21 The State shall encourage the exercise of the intellectual property rights obtained in projects covered by the scientific and technological fund established with government funds, or by scientific and technological plans, within the territory in the first place.

Where the intellectual property rights provided for in the preceding paragraph are to be transferred to overseas organizations or individuals, or to be permitted to be exclusively exercised by such organizations or individuals, the matter shall be subject to approval by the project administration authorities; and where there are other provisions on such authorities in laws or administrative regulations, the provisions there shall prevail.

Article 22 The State shall encourage the introduction of advanced technologies and equipment from other countries in accordance with the industrial and technological policies of the State.

Key technologies and equipment introduced with government funds or State-owned capital shall be digested, absorbed and recreated.

Article 23 The State shall encourage and support basic and application research of agricultural science and technology, disseminate and popularize knowledge of agricultural science and technology, speed up the transformation of scientific and technological achievements in agriculture and their application in production, and promote progress of agricultural science and technology.

People’s governments at or above the county level shall take measures to support agricultural scientific research and technological development institutions for public welfare and institutions for popularization of agricultural technology to conduct research, development and application of new agricultural strains and technologies.

Local people’s governments at various levels shall encourage and give guidance to rural scientific and technological organizations of a mass character in their effects to provide scientific and technological services for the development of crops growing, forestry, animal husbandry, fishery, etc. and to conduct training in science and technology among farmers.

Article 24 The State Council may, in light of need, grant approval for establishment of national high and new technology industrial development zones, and give guidance and assistance to construction and development of such zones so as to endow them with their special characteristics and advantages and give play to the effect of concentrated efforts.

Article 25 With respect to the products and services created independently by citizens, legal persons or other organizations within the territory, and the products and services that the State needs to offer special support and assistance, provided that they satisfy the requirements of government procurement in terms of their performance and technology indexes, the government shall purchase them for procurement; and where they are put on the market for the first time, the government shall take the lead in purchasing them.

Where a product that the government intends to procure is under research and development, the purchaser shall, through bid invitation, decide on the scientific research and technological development institution, the institution of high education or the enterprise for research and development, and shall place orders for the product.

Article 26 The State shall encourage the combination of scientific research and technological development with the establishment of product and service standards, and the combination of the said research and development with the design and manufacture of products; and the State shall give guidance to scientific research and technological development institutions, institutions of higher education and enterprises in their joint efforts to propel research of the manufacture of products with key national technological innovations and of the establishment of standards for service, and use them according to law.

Article 27 The State shall cultivate and develop a technology market, encourage people to establish intermediary agencies for such activities as technological assessment and brokerage, and shall give guidance to the establishment of a commercialized, specialized and networking service system for technological transactions, in order to promote the popularization and application of scientific and technological advances.

Technological transactions shall be conducted in adherence to the principles of voluntariness, equality, mutual benefit with compensation, honesty and credibility.

Article 28 The State shall apply a security system for science and technology, to protect scientific and technological secrets involving national security and interests.

The State shall apply a system governing the export of such scientific and technological resources as precious, rare, and endangered biological germplasm resources and hereditary resources.

Article 29 The State prohibits scientific research and technological development which undermine national security, harm public interests, endanger human health or violate moral principles and ethics.