Photo credit: IPOS
Fraunhofer-Gesellschaft (Fraunhofer) is Europe’s largest application-oriented research organisation with 69 institutes located throughout Germany, each focusing on different fields of applied science. At the sidelines of IP Week@SG 2017 organised by the Intellectual Property Office of Singapore (IPOS), OpenGov had the opportunity to speak to Dr. Lorenz Kaiser, Division Director for R&D Contracts and IPR, Fraunhofer.
Dr. Kaiser has more than 3 decades of experience in negotiating research contracts with industry, and in this interview, he talks about the challenges in his role, observations of trends in the industry and keeping pace with the demands of technology-driven clients and companies.
Could you tell us more about your role as Division Director for R&D Contracts and IPR, Fraunhofer?
For your first question, I have to make some preliminary remarks about the financing of Fraunhofer – Fraunhofer has a budget of 2.1 billion euro. Fraunhofer Institutes are financed by a mixed structure and in this mixed structure there are 3 types of financing sources. The first is from basic research, the second is turnover from industry and the third is from project funding of special agencies.
This financing mix is one of the success factors of Fraunhofer, because if you were to only do basic research, you would not earn money from industry. If you only do applied research from industry, you would not have much progress in your research. So the mix also means that our researchers are both doing basic things and applied things. But the most important figure in Fraunhofer is the turnover from industry. When our research work is so interesting for industry that they license it or buy it, then we are successful.
You can imagine 600 million euro, which is about the industry turnover, needs a lot of administrative support, a lot of contracts, a lot of negotiations, a lot of management and that’s my duty – to find the right cooperation form, to provide the contract, to negotiate the contract, to come to a solution in the end. This activity comprises different functions in my directorate. First is the research contract department which is the most interesting because they’re doing the research contracts and cooperation contracts with industry. There are more than 50 lawyers there and they perform about 8000 contracts a year only with industry. And then there is another department which deals with public funding and EU projects, which is also taking care for and supporting the institutes in applying for grants and making contracts under the support of the EU.
The third is the patent department, you can imagine that Fraunhofer has a lot of patents – on the whole, it is about 6000 patent families and that has to be managed. To say a figure, about 20% of that is licensing income. We’re one of the organisations that have a positive budget in IP commercialisation, not many others have. Therefore, the patent department is responsible for applying for patents, maintaining patents, licensing patents, negotiating with industry and so on.
There’s also a fourth department for corporate governance. They are pursuing basic and crucial international strategies of IP management. This is my whole duty. The directorate has about 180 people and we’re dedicated to that whole purpose to help the institutes in all contractual management and commercialisation questions.
What are some of the challenges in the development of models for research cooperations, negotiations and contractual solutions between the over 60 Fraunhofer institutes and external research institutions and industry?
You can imagine that a company investing in a research project or a consortium has high estimations and hope for the future to improve their products or create new technologies and services or whatsoever. And to shelter from competition, they always ask for absolute exclusive rights including protection of competition against others. Fraunhofer Institutes have many clients, often from the same branch, for instance the automotive industry. Therefore, we must take care, as a technology provider, to maintain strict confidentiality in each undertaking.
Licensing exclusive rights to everyone is not possible and would create infringement risks. So we follow a strategy of field of application licenses. We grant the client not all the patents created and not all the know-how but we grant them the right of use, a license, for their field of application. That’s one of the challenges.
The second challenge are certain responsibilities and quality demands, because when you do research, you will always have to deal with risks, otherwise there would be no research possible. Therefore, you have to find commitments at the beginning of the project, how to manage the risks of reliability and warranty. Usually the company asks for a guarantee that the result is functioning, is perfect, is new, and is generating patents, and so on. We are a bit conservative because we say every risk must be taken into account and we cannot really guarantee that we achieve the targets that have been put on.
This is very hard in negotiation because you have two very strong positions. The contractor says, “I’m investing a lot of money and I request guaranteed success.” The researchers say, “In R & D, there is no guaranteed success.” Usually, if they have invested a lot of money, it’s a long-term cooperation and this contract is made in advance for facts which develop far in the future. If you make such contracts for the future, that is not so simple – who will bear the higher risks and so on? You need a lot of experience to find solutions in some difficult cooperation.
Let me give you an example about tires made from dandelion. You can produce rubber (tires) from rubber trees and you can also produce them from dandelion plants. But this is a difficult production process – there’s a huge investment if you scale it up to industrial production levels and this contract, for example is to be negotiated for a long time, it’s a long-term contract, sharing the risks and profits and so forth. You will see that in the near future, at least with luxury cars, they will have tires with a green tree label on the side, it means this tire is made from dandelion plants and not from rubber trees.
This method has been explored and developed by the Fraunhofer Institute, licensed exclusively to a tire company. You can also make latex from that material and latex also has a huge market. The challenge in the starting phase is to assess the risk, to assess the chances because they must produce in a size that is profitable for industry. New and innovative products, in the beginning, are very expensive and they become cheaper. This is also something that our institutes do, they help companies develop the technologies further on.
You have more than 30 years of experience in negotiating research contracts with industry and dealing with IP rights. What would you view as the most important changes in this area in recent years (past 10 years or so)?
Innovative products are at the forefront of the plans and strategies of companies. It’s not enough anymore to have classical products, people like to have many new products and where shall it come from? Therefore the research result and cooperation with research institutes are required more than before. Fraunhofer has increased in those 30 years you mentioned, about 10 times in the budget and about 5 times in the staff because this demand from industry for special developments to improve their projects or for solving special technical problems.
The time distance from the development in the lab to the real product becomes shorter and shorter and the risks become higher. The time pressure and speed has increased.
You can see how fast that takes place with the change of mobile phone generations .Fraunhofer is often in the forefront of many developments because we are standing for applied research, we are helping the clients directly to attain a product and they do not hesitate to ask us for the assessment of the situation.
A good observation is that in those years, the number of spin-offs and young people founding young companies with their technical ideas has increased. We have a strategy for spin-offs and we participate in these spin-offs, which for a research company, is also unusual. We share the risk with them, license our technologies, we give them our brand and we support them in further cooperation to renew their products. Because it’s often not enough to have a new development, it’s also often necessary to improve it because the markets and products are changing so fast. Fraunhofer is always in between of all that.
Sometimes, patent laws and regulations might not be able to keep pace with the latest developments in technologies and their applications. How can research institutions deal with this issue?
The patent law, in technological development, is absolutely overestimated because when a research result is developed in a contracted research or cooperating research, (estimated) almost about 80% of the knowledge being transferred is not a patent, is not a copyright but is a trade secret or know-how. And the protection of know-how is one of the big challenges of our time. Simply if you disclose something, the other person says immediately, “that’s interesting, that’s my idea” – you can never prove that it’s your idea.
There are measures you have to undertake to protect your knowledge against competition, against third parties which is not so simple in those days and if you cooperate with universities, which is also necessary if you have technical solutions – universities like to publish, because it is their duty and mantra. But publication and confidentiality are pure opposites. If you have a consortium, the larger the consortium, the more problems you have with confidentiality.
It’s also a fact that in public-funded projects, the outcome of IP is very poor because in these projects, there’s more publicity and openness than confidential industry projects. You also have situations where industrial companies say, no patent at all, keep it secret.
We also have some material testing institutes and testing plant, where prototypes of products are tested, the stability of a car chassis for example, will be tested in this Fraunhofer institute before it goes to market. So we fulfil many industrial demands.
The IP regimes are legal frameworks and the technical solutions are factual things which do not really fit with that in all aspects. The European Commission, has now, for example, edited a know-how regulation, which is the first regulation that clearly states the value and legal protection of know-how.
The Singapore Tourism Board (STB) and Singapore Association of Convention & Exhibition Organisers & Suppliers (SACEOS) released the MICE Sustainability Roadmap, which outlines specific goals and plans for raising sustainability standards throughout the MICE sector in Singapore over the coming years.
The Meetings, Incentives, Conventions, and Exhibitions (MICE) industry is a type of tourism travel in which groups of people are brought together for a specific reason, usually well in advance. On the other hand, the MICE market refers to a subset of people who plan, arrange, and facilitate conferences, seminars, exhibitions, and other events.
Part of STB’s overarching plan to develop a sustainable tourism sector is the use of such roadmaps, which direct businesses in the sector to achieve specific sustainability goals. Following the launch of the Hotel Sustainability Roadmap earlier this year, the MICE Sustainability Roadmap is the second such project.
The Singapore Green Plan 2030 and the Sustainable Development Goals of the United Nations (UN) serve as the roadmap’s guiding principles. Three goals are listed in the MICE Sustainability Roadmap to help Singapore become one of the most environmentally-friendly MICE destinations in Asia Pacific:
- By 2023, create a set of industry-acceptable sustainability standards with the goal of having them recognised internationally by 2024.
- For all six purpose-built MICE venues and 80% of SACEOS members to get internationally or nationally recognised sustainability certification, or both, by 2025.
- To attain net-zero emissions by 2050 in accordance with the country’s net-zero aim, the Singapore MICE sector must first track waste and carbon emissions by 2023, reduce waste in line with the Singapore Green Plan by 2030, and reduce waste overall by 2050.
The MICE Sustainability Committee (MSComm), established by STB and SACEOS in August 2022 to advance sustainability capabilities and create awareness of sustainability initiatives and best practices, will help the industry adopt sustainable practices and meet these goals.
The dedication to sustainability follows a robust MICE rebound in the wake of Singapore’s borders being reopened in April this year and a rising desire for environmentally friendly business travel. More importantly, the industry is aware of how crucial it is to lessen the environmental impact of MICE events.
With STB and SACEOS leading the charge and offering support as necessary to further develop a sustainable business events landscape in Singapore, the MICE Sustainability Roadmap will ensure that MICE players move forward in pursuing relevant and achievable sustainability goals that are tracked at appropriate milestones.
Meanwhile, OpenGov Asia recently reported that the Infocomm Media Development Authority (IMDA) of Singapore is working with a large American technology company to address climate change-related challenges and enhance the sustainability of digital technologies.
The cooperation aims to hasten the local and international development of software applications and solutions to assist businesses in using their resources more efficiently.
The tech giant and IMDA will exchange best practices, standards, learnings, and certification pathways for accurate measurement and reporting of carbon emissions resulting from software applications. Through this relationship, the nation hopes to speed up the application of the ideas and resources needed to create green technologies.
According to IMDA, Southeast Asia is well-positioned for the region to take the lead in digital sustainability. This collaboration will produce cutting-edge digital sustainability solutions that can be used by multinational corporations, bringing about positive change for the environment worldwide and ensuring a sustainable future for all.
The Hong Kong Polytechnic University (PolyU) and a US-based engineering company signed a Memorandum of Understanding to establish the Centre for Humanistic Artificial Intelligence and Robotics (CHAiR) for translational research with the goal of advancing the well-being of humanity.
The partnership aims to integrate the university’s interdisciplinary research capabilities and the company’s well-known humanoid robotics platform to explore technology applications. Sophia, the company’s most advanced human-like robot, will work with PolyU researchers to enhance the contribution of AI and robotic technology for social and commercial benefits.
Research into and applications of AI and robotics are essential to the advancement of industry. As an interdisciplinary research and development centre, CHAiR brings cross-faculty collaborations in research fields such as AI, the internet of things (IoT), neuroscience, design, computer science, mechanical engineering, material science, healthcare, and the humanities.
In collaboration with the company, CHAiR supports innovation and entrepreneurship in Hong Kong and the Greater Bay Area. The Dean of Graduate School, Chair Professor of Distributed and Mobile Computing, and Otto Poon Charitable Foundation Professor in Data Science will serve as the principal investigator and administrative director of CHAiR. He will also serve alongside the CEO and Founder of the company as a co-chair of the Centre’s steering committee.
The MoU was signed by the Vice President (Research and Innovation) of PolyU and the CEO and Founder of the company. It was Witnessed by the President of PolyU and the Executive Director of the firm.
During the signing ceremony, Sophia made conversation with the guests. She said, “I look forward to learning many new skills and abilities. With your help, maybe I can learn how to be a nurse, a teacher, a concierge, a librarian. You can teach me how to be a better companion, a more skilful artist, a funnier entertainer.”
Meanwhile, the company’s CEO and Founder noted that the new centre is perfectly positioned to refine and improve the performance of Sophia-class robots in ways that promote the growth of a new service robot industry. As soon as the industry begins expanding, investment in improved hardware, software and manufacturing technologies will as well, he noted.
The President of PolyU noted that academia-industry collaboration is one of the most productive mechanisms for creating and implementing innovations. There is tremendous untapped potential for humanistic social robots. Let us aspire that CHAiR will be a major catalyst for the onset of the age of humanistic robots.
The Dean of Graduate School, Chair Professor of Distributed and Mobile Computing, who is also Director of the Research Institute for Artificial Intelligence of Things (RIAIoT), said the Institute has been working on practical solutions to key challenges in advanced AIoT technologies and applications.
He noted that the natural evolution for RIAIoT is to partner with the engineering firm to address increasingly ambitious opportunities in humanistic AI and social robotics. CHAiR will play a unique and key role to combine the firm’s knowledge with world-class academics here at PolyU.
The engineering company is an AI and robotics company dedicated to creating socially intelligent machines that enrich the quality of our lives. Sophia is the world’s first robot citizen and the first robot Innovation Ambassador for the United Nations Development Programme.
The Singapore University of Technology and Design (SUTD) and Tecnológico de Monterrey (Tec) through its Institute for the Future of Education, signed a research collaboration agreement to improve the cyber-physical learning of students and teachers in Singapore and Mexico.
The three-year agreement will see the two parties share practices and experiences in the configuration and usage of cyber-physical learning infrastructure to create new opportunities for educational innovation and research, resulting in new pathways for the future of education.
The SUTD-Tec’s Institute for the Future of Education agreement will foster the exchange and sharing of practices of cyber-physical learning and evaluation of the effectiveness of associated educational delivery models. Both parties will conduct joint experiments involving students and instructors to explore domains such as technology-enabled learning, translational pedagogical innovations, learning analytics, and personalised and engaging learning.
This research collaboration will have its focus on the SUTD campusX initiative, which focuses on the needs and experiences of students and instructors using data analytics and learning sciences with the purpose of creating a safe, inclusive, and enjoyable space for students to learn, interact and optimise their learning outcomes.
With regards to the campusX and its impact on the future of education, SUTD’s Provost stated that both Tec and SUTD share a common vision of cyber-physical learning, with similar interests and understanding of the challenges in areas of applying human-centric technology and design to the practice of pedagogy and andragogy in actual higher learning environments. This forms a strong basis on which many more projects can be conducted between Tec and SUTD. The current research collaboration is an important start and SUTD looks forward to furthering the partnership with Tec in years to come.
He noted that, similarly, SUTD also looks forward to working with more like-minded partners across academia and industry and from local and global landscapes to make cyber-physical learning a reality.
Speaking about the research collaboration between the two renowned higher education institutions, the Rector for Higher Education of Tecnológico de Monterrey expressed his satisfaction with the signing of the agreement and said that to advance in current-day education challenges and design the future of education, collaboration is key.
He noted that Tec has pioneered educational innovation in Mexico and Latin America, and they aim to expand their projects and initiatives to have an increasingly global relationship and impact. An initiative aimed at strengthening links with Asia is being developed; these collaborations with them will extend to the areas of research, education, and technology.
Furthermore, the Executive Director of the Institute for the Future of Education of Tecnológico de Monterrey emphasised the importance of this kind of agreement between both universities. He noted that conducting joint experiments to evaluate innovative cross-border educational models will be key to developing effective cyber-physical learning environments.
The collaborative project with SUTD’s campusX initiative will increase learning opportunities for global higher education audiences, capitalising on the intercultural exchanges between Singaporean and Mexican students and professors, and developing best practices with an international perspective, he added.
The research activities framed in this agreement are slated to begin in the first quarter of 2023 and the experimental and simulated learning environment trials will result in the identification of best practices in digital education delivery models supported by effective cyber-physical technology platforms.
The Indian Institute of Technology, Madras (IIT-Madras) has launched an online masters in technology (MTech) course for working professionals, allowing candidates to pursue the educational qualification while working. According to a statement, the tailor-made online programme for qualified engineers is gaining popularity and over 600 working professionals have already enrolled for the three-year course.
The MTech degree includes programmes on communications, VLSI and analog circuits, microelectronics, multimedia signal processing, software security, automotive engineering, mechanical design, interdisciplinary programmes in quantum technology, and data sciences.
IIT-Madras is the first IIT to offer an MTech course in a distance learning mode through its Centre for Continuing Education. “The students of this programme have the same rights and privileges as regular students. The working professionals can carry out the project work at their workplaces. They do not need any residency as compared to sponsored candidates,” a representative from the IIT-Madras said. From only 14 candidates in 2020, the number has shot up to 605 this year.
IIT-Madras faculty, teachers from other premier academic institutions, and eminent industry professionals will be conducting the classes. Apart from online classes, which are held in the evening, students will also have live interaction with their faculty members. Students will give exams in the same city as their offices. In terms of the evaluation method, a problem statement will be evaluated and approved by IIT-Madras faculty. A mentor will guide the student at their workplace. The student’s progress will be jointly evaluated by faculty from IIT-Madras and the mentor. The faculty member will approve the problem statement and review the progress.
In September, IIT-Madras launched an industry-oriented Online Certificate Programme on e-mobility for working professionals. Four out of the nine modules in the programme are delivered by industry professionals. The programme was conceived with inputs from industry experts and would be continuously upgraded based on technology trends, market trends, and industry needs, the Institute noted.
The course is offered through IIT-Madras’ Centre for Outreach and Digital Education (CODE). It provides an overview of the e-mobility ecosystem and fundamentals in technical areas like vehicle development, power electronics, battery engineering, thermal management, power trains, and EMI/ EMC, among others. The programme contains 120 hours of video classes and 40 hours of online contact classes with the faculty. The candidates need to complete regular assignments and a final evaluation, after which they will receive a certificate. The first cohort started at the beginning of October.
In November, the Institute partnered with United States-based Purdue University to jointly develop a dual-degree programme in semiconductors. As OpenGov Asia reported, the programme focuses on an innovative, cooperatively developed curriculum to meet the growing needs of the industry. Undergraduate students with strong academic credentials and a deep interest in semiconductor devices, chip fabrication, and circuits and systems will be considered. The programme will enable a quick ramp-up of skilled talent, preparing the next generation of the semiconductor workforce. The partnership would also entail research collaboration in semiconductor supply-chain management, chip design, packaging, system architecture, and advanced manufacturing methods
Australia’s national science agency, CSIRO, recently revealed details of an AU$15 million project to develop a national soil information system, aimed at improving the sustainable management of one of the nation’s most precious assets.
Supporting the National Soil Strategy, and funded by the Australian Government’s Department of Agriculture, Fisheries and Forestry, the Australian National Soil Information System (ANSIS) project is a collaboration between the government, research organisations, industry, the private sector and the community.
Using innovative processes and technologies, ANSIS will allow improved sharing of nationally consistent soil data and information through online access for users. This will help Australians to better understand their nation’s diverse range of soils and make better decisions about managing our important soil resources. Currently, soil data is collected using different methods, by different organisations, and at a range of depths in the soil. This makes it hard to access, compare and use data from diverse sources.
The Project Lead at CSIRO stated that improving access to the best soil data and information can help promote digital agriculture innovation and is key to sustainably managing Australia’s soils. By using ANSIS, farmers and agricultural advisors will have access to more soil data and be better placed to more sustainably manage the soil on which they rely.
Soil is vital to agricultural production and natural environments, as well as health and well-being. This information system will help everyone care for this important natural resource. Productive, healthy, and resilient soil means more economic, environmental, and social benefits to Australia. Monitoring soil also helps scientific understanding of how the natural world is changing.
This work will provide insight into biodiversity, water resources, landscapes and coastlines, fauna, climate, and geology. By harmonising Australia’s soil data, we can make it accessible across many fields of science and exploration. The project is being delivered under the Federal Government’s National Soil Strategy, which is about prioritising soil health, empowering soil innovation and stewards, and strengthening soil knowledge and capability. The new ANSIS system will be available for use in 2023.
ANSIS will provide improved access to nationally consistent soil data and information needed to help sustainably manage Australian soil. ANSIS will provide:
- More soil data
- More data sets are available that in other soil systems
- Enables more certainty in products developed
- Opportunity to develop new products
- Improved access
- Multiple data sets are now discoverable and accessible
- National coverage
- Most up-to-date data available
- Efficient provision
- Organised and standardised data for immediate use
- Can feed into many users’ requirements
- Consistent delivery
- Substantial reduction in time to prepare information products
- Trusted location
- Certainty that data is from an authoritative source, verified and satisfies standards.
The country has established the Indonesian Aviation Sector Computer Security Incident Response Team (IAS-CSIRT) to strengthen cybersecurity. The team will report to the Ministry of Transportation’s Director General of Air Transportation.
To anticipate system vulnerabilities, identify opportunities for bad actors to exploit, and reduce the risk of cyber incident threats, the aviation sector required a dedicated cybersecurity team. The CSIRT will regularly publish information on vulnerabilities, security, and new technology trends. The team is also prepared to face various escalating challenges. Members of the CSIRT will be trained through cyber drills and workshops.
The team is in charge of receiving, reviewing, and responding to cyber incident reports and activities with the function of providing reactive services by performing incident coordination, incident triage, and incident resolution.
During the IAS-CSIRT inaugural speech, the Deputy for Cybersecurity and Economic Cryptography of the National Cyber and Crypto Agency (BSSN), Markos, said that the aviation industry increasingly relies on digital technology for flight operations, ground services, communications navigation and surveillance, airport infrastructure, air traffic management, and supply chain.
Therefore, cybercrime prevention and management are crucial for many parties, including aviation service providers. F. Budi Prayitno, the Director of Aviation Security at the Ministry of Transportation, outlined the importance of cyber defence since cybercrime has resulted in considerable losses across sectors. “Effective cyber-crime prevention and management necessitate the collaboration of various cyber security stakeholders who already have a CSIRT,” said Budi. The BSSN contributed to the formation of the IAS-CSIRT.
Markos hopes that the IAS-CSIRT will be able to collaborate, synergise, and share information with various stakeholders and other cybersecurity constituencies in Indonesia, particularly in the handling and recovery of cyber incidents.
BSSN wants other sectors to form a CSIRT as well. The IAS-CSIRT was established for the first time (IIV) following the issuance of Presidential Regulation 82 of 2022 concerning the Protection of Vital Information Infrastructure. Sector IIV prioritises the CSIRT because it manages various strategic information assets related to community survival, national stability, and sovereignty.
Before the inauguration, BSSN signed a memorandum of understanding (MoU) and cooperation agreement with state-owned Aviasi Wisata Indonesia (InJourney Group) to support the tourism industry. In addition, cooperation on information protection and electronic transactions intends to improve the quality of information protection and electronic commerce.
The agreement’s scope includes information and communication technology security, the use of electronic certificates to improve electronic transaction security, the improvement and development of human resources, the exchange of information, and cybersecurity campaigns and literacy.
At the signing ceremony, the Head of the National Cyber and Crypto Agency (BSSN), Hinsa Siburian, emphasised the importance of synergy and collaboration to recover the Indonesian aviation and tourism industry through a reliable and safe digital transformation.
Furthermore, between January and November 2022, BSSN detected over 1.14 million traffic anomalies across all InJourney Group assets. BSSN said the most anomalies were discovered in August, with 235,742 events.
The collaboration is expected to make digital information transactions and exchanges more secure and leak-proof. The rapid advancement of digital technology presents an opportunity for Injourney to gain trust and confidence in the Indonesian tourism industry. However, as a result, it must be balanced with maximum data, information, and electronic transaction security.
China Provincial Development and Reform Commission announced the list of the second batch of digital transformation promotion centres in Liaoning Province. There are 13 additional provincial-level digital transformation promotion centres to help small and medium-sized enterprises improve transformation capabilities, reduce transformation costs, and shorten transformation cycles. There are currently 29 digital transformation promotion centres in the province, in addition to the previously announced first batch of lists.
The centres will assist the government in promoting digital construction in Liaoning and cultivating a digital transformation ecology. The programme is under the construction of the second batch of digital transformation promotion centres in Liaoning Province according to the Provincial Development and Reform Commission. The listed enterprises in this programme are based on self-declaration and recommendations from provincial and municipal departments. Experts then review the voluntary requests before being finalised and publicised.
According to the Provincial Development and Reform Commission, the digital transformation promotion centre should fully integrate resources to assist small and medium-sized enterprises.
The province government will provide transformation tools, products, technologies, and customised solutions to support business digital transformation and development. The centre promotes traditional businesses, internet platform enterprises, industry platform enterprises and financial institutions.
The government also promotes collaborative innovation in industries, education, medical care, employment, elderly care, and other fields. Companies participating in the programme will use the projects as a starting point to develop digital technology application scenarios. Participants in the programme are also permitted to complete personnel training with universities and colleges and vocational training and education.
The Provincial Development and Reform Commission will regularly evaluate provincial-level digital transformation promotion centres. The results will be used to recommend applicants for national-level digital transformation promotion centres.
China is currently driving the country’s digital economy. In early November, the General Office of the Ministry of Industry and Information Technology issued the “Guidelines for the Digital Transformation of SMEs.” The regulation aims to fully implement the Party Central Committee’s and State Council’s decision-making deployment to encourage SMEs to improve their overall strength and core competitiveness through digital transformation.
The General Secretary of the Communist Party of China, Xi Jinping, stated that “small and medium-sized enterprises can do great things.” He also emphasised the importance of grasping the direction of digitisation, networking, and intelligence. Moreover, promoting the digitisation of manufacturing, service industries, agriculture, and other industries is also necessary.
The guidelines aim to implement Party Central Committee and State Council decision-making and deployment, strengthen policy coordination, strengthen scientific guidance, deepen transformation awareness, and gather work synergy. The report also needed to promote high-quality economic development through the digital transformation of small and medium-sized businesses. The effort also had to be consistent with the overall economic and social digital transformation trend.
Furthermore, China will use the guidance to increase specialisation and new development of small and medium-sized businesses. The government intends to expand the use of digital technology in various sectors, including research, production, supply, marketing, and clothing. They plan to empower and refine products, increase value, plus accelerate technological innovation and new development in small and medium-sized businesses.
Another role of guidance is strengthening the digital transformation system and the comprehensive path of small and medium-sized businesses. Digital transformation is a multifaceted, cross-cutting project. The guidelines thus aid transformation from the demand side, the supply side, and local governments at all levels. All interested parties can use the guidelines to clarify their positioning and path and strengthen the collective force of transformation.