During the past 20 years the Chinese government has implemented a series of policy measures in order to reform the science and technology (S&T) system. The first step was the issuance, in March 1985, of the Central Committee of Communist Party of China’s Decision on the Reform on Science and Technology System. The guiding principle is that building the economy should rely on science and technology, while science and technology should be oriented towards building the economy. The major measures aim to: reform the funding system by introducing competition;1 promote the commercialisation of technology by developing the technology market; introduce market mechanisms and adjust the organisational structure of science and technology; encourage co-operation among industries, universities and research institutes so as to strengthen firms’ capacity to develop and absorb technology; increase the self-determination of research institutes under the responsibility of the institute’s director; and reform the administrative system of scientific personnel.