The Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements was adopted at the 19th Meeting of the Standing Committee of the Eighth National People's Congress on May 15, 1996 and came into force on October 1, 1996. The current version was revised at the 16th Meeting of the Standing Committee of the Twelfth National People's Congress on August 29, 2015.

Chapter 1 General Provisions

Article 1

In order to promote the transformation of scientific and technological achievements into practical productivity, regulate the activities of scientific and technological achievement transformation, accelerate scientific and technological progress, promote economic construction and social development, this law is formulated.

Article 2

The transformation of scientific and technological achievements referred to in this law refers to the subsequent experimentation, development, application, promotion, and formation of new products, new processes, new materials, and the development of new industries of practical value generated by scientific research and technological development in order to improve the level of productivity.

Article 3

The transformation of scientific and technological achievements should be conducive to improving economic and social benefits, protecting the environment and resources, and promoting economic construction, social development, and national defense construction.

The transformation of scientific and technological achievements should follow the principles of voluntariness, mutual benefit, fairness, honesty and credibility, and enjoy benefits and bear risks in accordance with the law or contractual agreements. Intellectual property rights in the transformation of technological achievements are protected by law.

The transformation of scientific and technological achievements shall comply with the law, safeguard national interests, and shall not harm the public interest.

Article 4

The science and technology administrative departments, planning departments, comprehensive economic management departments, and other relevant administrative departments of the State Council shall manage, guide, and coordinate the transformation of scientific and technological achievements in accordance with the scope of responsibilities prescribed by the State Council.

Local governments at all levels are responsible for managing, guiding, and coordinating the transformation of scientific and technological achievements within their administrative regions.

Chapter 2 Organization and Implementation

Article 5

The State Council and local governments at all levels shall incorporate the transformation of scientific and technological achievements into the national economic and social development plan, and organize and coordinate the implementation of the transformation of relevant scientific and technological achievements.

Article 6

The relevant departments of the State Council and the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government regularly release catalogs of scientific and technological achievements and guidelines for key scientific and technological achievement transformation projects, prioritizing and supporting the implementation of the following projects:

（1） Significantly improving the level of industrial technology and economic benefits;

（2） Forming an industrial scale with international economic competitiveness;

（3） Reasonably developing and utilizing resources, conserving energy, reducing consumption, and preventing and controlling environmental pollution;

（4） Promoting high-yield, high-quality, and efficient agriculture and rural economic development;

（5） Accelerate the socio-economic development of ethnic minority areas and remote poverty-stricken areas.

Article 7

The state promotes and encourages the adoption of advanced technologies, processes, and equipment through the formulation of policy measures, and continuously improves, restricts, or eliminates outdated technologies, processes, and equipment.

Article 8

Key scientific and technological achievement transformation projects organized and implemented by people's governments at all levels can be implemented through open bidding by relevant departments. The relevant departments shall provide the winning bidder with the funding or other conditions determined during the bidding process.

Article 9

Holders of scientific and technological achievements can use the following methods to transform scientific and technological achievements:

（1） Self investment to implement transformation;

（2） Transfer the technological achievements to others;

（3） Authorize others to use the technological achievements;

（4） Using the technological achievement as a cooperative condition, jointly implementing the transformation with others;

（5） Value the technological achievements as investment, convert them into shares or contribution ratios.

Article 10

Enterprises may independently publish information or entrust technology trading intermediaries to collect the required scientific and technological achievements, or seek collaborators for the transformation of scientific and technological achievements, in order to adopt new technologies, processes, materials, and produce new products.

Article 11

Enterprises have the right to independently or jointly implement the transformation of scientific and technological achievements with domestic and foreign enterprises, institutions, and other collaborators in accordance with the law.

Enterprises can independently or jointly undertake government organized scientific and technological research and development and technology achievement transformation projects through fair competition.

Article 12

The state encourages research and development institutions, universities, and other public institutions to combine with production enterprises to jointly implement the transformation of scientific and technological achievements.

Research and development institutions, universities, and other public institutions may participate in bidding activities for the implementation of scientific and technological achievements transformation by relevant government departments or enterprises.

Article 13

The state encourages agricultural research institutions and agricultural experimental demonstration units to independently or cooperate with other units to implement the transformation of agricultural scientific and technological achievements.

Agricultural research institutions may, in order to promote the transformation of their scientific and technological achievements, operate their independently researched and developed or cooperate with other units to research and develop excellent varieties that have been approved in accordance with the law.

Article 14

If a research and development institution or higher education institution established by the state fails to timely implement the transformation of practical job-related scientific and technological achievements, the person who completed and participated in the scientific and technological achievements may, without changing the ownership of the job-related scientific and technological achievements, carry out the transformation of the scientific and technological achievements in accordance with the agreement with the unit and enjoy the rights and interests stipulated in the agreement. The unit shall provide support for the above-mentioned scientific and technological achievements transformation activities.

Individuals who have completed scientific and technological achievements or project leaders shall not obstruct the transformation of job-related scientific and technological achievements, nor shall they take possession of job-related scientific and technological achievements and their technical materials and data, thereby infringing upon the legitimate rights and interests of the unit.

Article 15

Units that complete scientific and technological achievements, implement the transformation of scientific and technological achievements, and invest in the transformation of scientific and technological achievements shall cooperate in the subsequent testing, development, application, and production and operation of scientific and technological achievements, and shall sign contracts to stipulate the rights and risks enjoyed by each party.

Article 16

In the process of transforming scientific and technological achievements, the testing and value evaluation of scientific and technological achievements must follow the principles of fairness and objectivity, and false testing results or evaluation certificates must not be provided.

Research and development institutions, higher education institutions, and state-owned enterprises established by the state must evaluate the value of scientific and technological achievements in accordance with relevant national regulations when collaborating with enterprises, other organizations, or individuals outside of China for the transformation of scientific and technological achievements.

Foreign cooperation in the transformation of scientific and technological achievements involving state secrets shall be approved in advance according to the prescribed procedures in accordance with the law.

Article 17

Places or institutions engaged in technology trading established in accordance with the law may engage in the following activities to promote the transformation of scientific and technological achievements:

（1） Introduce and recommend advanced, mature, and practical technological achievements;

（2） Provide economic information, technical information, environmental information, and other relevant information required for the transformation of scientific and technological achievements;

（3） Conduct technical trade activities;

（4） Provide other consulting services for the transformation of scientific and technological achievements.

Article 18

Intermediary agencies engaged in paid services such as agency or intermediary in technology trading must obtain a business license in accordance with relevant national regulations; Personnel engaged in brokerage business in this institution must obtain qualification certificates in accordance with relevant national regulations.

Article 19

The state encourages enterprises, institutions, and rural science and technology economic cooperation organizations to conduct intermediate experiments, industrial experiments, agricultural experimental demonstrations, and other technological innovation and service activities.

Intermediate experimental bases, industrial experimental bases, agricultural experimental demonstration bases, and other technological innovation and service institutions engaged in the transformation of scientific and technological achievements may engage in the following activities:

（1） Conduct intermediate and industrial tests on new products and processes;

（2） To carry out systematic and engineering development and technological innovation of regional or industry scientific and technological achievements for the society;

（3） Provide technology and technical services for small and medium-sized enterprises, township enterprises, and rural science and technology economic cooperation organizations;

（4） Provide comprehensive supporting services for the transformation of high-tech achievements and the establishment of related enterprises.

The basic construction of the bases and institutions listed in the preceding paragraph shall be approved by relevant departments of the State Council and the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, and shall be included in relevant national or local plans.

Article 20

Experimental products for the transformation of scientific and technological achievements may be tested and sold within the approved trial sales period, in accordance with relevant national regulations on trial sales products and with the approval of relevant departments. Trial production and sales of the above-mentioned products shall comply with relevant national standards for technology, quality, safety, hygiene, etc.

Chapter 3 Guarantee Measures

Article 21

A certain proportion of the funds allocated by the state finance for science and technology, fixed assets investment and technological transformation shall be used for the transformation of scientific and technological achievements. The national financial funds for the transformation of scientific and technological achievements are mainly used for guiding funds, loan interest subsidies, subsidy funds, venture capital, and other fund purposes to promote the transformation of scientific and technological achievements.

Article 22

The state implements tax incentives for the transformation of scientific and technological achievements. The specific measures shall be formulated by the State Council.

Article 23

National financial institutions should support the transformation of scientific and technological achievements in terms of credit, gradually increasing loans for the transformation of scientific and technological achievements.

Article 24

The state encourages the establishment of funds for the transformation of scientific and technological achievements or risk funds, with funding sources provided by the state, localities, enterprises, institutions, and other organizations or individuals, to support the transformation of high investment, high-risk, and high-yield scientific and technological achievements and accelerate the industrialization of major scientific and technological achievements.

The establishment and use of funds for the transformation of scientific and technological achievements and risk funds shall be carried out in accordance with relevant national regulations.

Article 25

The country promotes the construction and development of science and technology information networks, establishes a database of scientific and technological achievements information, and provides scientific and technological achievements information services nationwide.

Chapter 4: Technical Rights and Interests

Article 26

If the unit that completes the scientific and technological achievements cooperates with other units to transform the scientific and technological achievements, the ownership of the relevant rights and interests of the scientific and technological achievements shall be stipulated in the contract in accordance with the law. If there is no agreement in the contract, the following principles shall be followed:

（1） If there are no new inventions or creations in the cooperative transformation, the rights and interests of the scientific and technological achievements shall belong to the unit that completed the scientific and technological achievements;

（2） If a new invention or creation is generated during the transformation of cooperation, the rights and interests of the new invention or creation shall be jointly owned by all parties to the cooperation;

（3） All parties have the right to implement the technological achievements generated in the cooperation transformation, and the transfer of such technological achievements shall be subject to the consent of all parties involved in the cooperation.

Article 27

If the unit that completes scientific and technological achievements cooperates with other units to transform scientific and technological achievements, the parties to the cooperation shall reach an agreement on the confidentiality of technical secrets; The parties shall not violate the agreement or the requirement of the rights holder to keep technical secrets confidential, disclose or allow others to use the technology.

The technology trading venue or intermediary institution shall have a confidentiality obligation regarding the technical secrets of the parties involved that it becomes aware of in the course of engaging in agency or intermediary services.

Article 28

Enterprises and institutions shall establish and improve a system for protecting technical secrets to safeguard their own technical secrets. Employees shall comply with the technical secret protection system of their unit.

Enterprises and institutions may sign agreements with relevant personnel involved in the transformation of scientific and technological achievements to keep their technical secrets confidential during their employment or for a certain period of time after resignation, retirement, or retirement; Relevant personnel shall not violate the agreement by disclosing the technical secrets of their unit or engaging in the same scientific and technological achievement transformation activities as the original unit.

Employees are not allowed to transfer their job-related scientific and technological achievements without authorization or in a disguised form.

Article 29

If a unit that has completed scientific and technological achievements transfers its job-related scientific and technological achievements to others, the unit shall allocate no less than 20% of the net income obtained from the transfer of the job-related scientific and technological achievements to reward personnel who have made significant contributions to the completion and transformation of the scientific and technological achievements.

Article 30

After the successful transformation and production of scientific and technological achievements independently researched and developed by enterprises and institutions or jointly researched and developed with other units, the unit shall extract no less than 5% of the newly added retained profits from the implementation of the scientific and technological achievements for three to five consecutive years, and reward personnel who have made important contributions to the completion of the scientific and technological achievements and their transformation.

Enterprises that adopt the form of shares may convert the remuneration or rewards of relevant personnel who have made significant contributions in the research and development, implementation and transformation of scientific and technological achievements into shares or contribution ratios in accordance with relevant national regulations. The shareholder shares the profits based on their shareholding or contribution ratio.

Chapter 5 Legal Liability

Article 31

Those who violate the provisions of this law by engaging in fraudulent activities, using deceptive means to obtain rewards and honorary titles, defrauding money, or illegally profiting in the transformation of scientific and technological achievements shall be ordered to make corrections, the rewards and honorary titles shall be cancelled, the illegal gains shall be confiscated, and a fine shall be imposed. Those who cause economic losses to others shall bear civil liability for compensation in accordance with the law. Those who commit crimes shall be held criminally responsible in accordance with the law.

Article 32

Those who violate the provisions of this law by testing or evaluating the value of scientific and technological achievements, intentionally providing false testing results or evaluation certificates, shall be ordered to make corrections, given a warning, have their illegal gains confiscated, and be fined by the testing organizers and evaluation institutions; If the circumstances are serious, the business license and qualification certificate shall be revoked in accordance with the law. Those who cause economic losses to others shall bear civil liability for compensation in accordance with the law.

Article 33

Staff members of science and technology administrative departments and other relevant departments of the people's governments at all levels who neglect their duties, engage in favoritism and fraud in the transformation of scientific and technological achievements shall be given administrative sanctions; Those who commit crimes shall be held criminally responsible in accordance with the law.

Article 34

Those who violate the provisions of this law by instigating theft, inducing coercion, or other means to occupy the scientific and technological achievements of others, and infringe upon the legitimate rights and interests of others, shall bear civil compensation liability in accordance with the law and may be fined; Those who commit crimes shall be held criminally responsible in accordance with the law.

Article 35

If an employee violates the provisions of this law by leaking the technical secrets of the unit without the permission of the unit, or transferring or disguising the transfer of job-related scientific and technological achievements without authorization, or if the relevant personnel participating in the transformation of scientific and technological achievements violate the agreement with the unit and engage in the same scientific and technological achievement transformation activities as the original unit within the agreed period after resignation, retirement, or retirement, they shall bear legal responsibility in accordance with relevant regulations.

Article 36

If intermediary agencies or personnel engaged in brokerage services in technology trading deceive clients or collude with one party to deceive the other party, they shall be ordered to rectify and given a warning. In addition to bearing civil compensation liability in accordance with the law, illegal gains shall be confiscated and fines shall be imposed; If the circumstances are serious, the business license and qualification certificate shall be revoked in accordance with the law; Those who commit crimes shall be held criminally responsible in accordance with the law.

Chapter 6 Supplementary Provisions

Article 37

This law shall come into effect on October 1, 1996.