A technology exchange refers to a place that provides listing, trading, publicity and related derivative services for technology-based intellectual property rights and related rights and interests. At present, there are technology trading venues in various places in China, which can be divided into two categories according to the form of establishment: one is to trade patent technology independently in high-tech industries and areas where technology is concentrated (e.g. China Technology Exchange); the other is to trade patent technology as a subcategory of property rights trading, and to trade patent technology, trademark rights and copyrights through a trading platform for intellectual property rights (e.g. Shanghai United Property Rights Exchange). .

I. Current status of technology exchange development in the country

Far-reaching impact on technology transfer transformation

After years of development, the Technology Exchange has made positive contributions to technology transfer and transformation services: first, it has played the role of a technology transfer demonstration leader. By drawing on the experience of international technology transfer institutions, the exchanges have focused on the effective technology needs of enterprises, established close ties with enterprises, universities and research institutes, and guided the supply and demand sides to cooperate and connect, playing a positive role in promoting the construction of China's science and technology innovation system; secondly, they have played a leading role in expanding technology transfer networks. The exchanges have established technology transfer networks that are mainly local, cover the surrounding areas and link up with various countries. These networks include innovation stations, technology transfer bases, international technology transfer partners, etc. Thirdly, they play a role in improving the capacity of transfer services. The exchanges are collecting and collating information on technology projects, holding meetings to promote project matching, and providing technology transfer and technology trading services for enterprises by means of technology intermediation, technology retention and sale, technology consultation and technology evaluation.

Multiple factors contribute to trading gridlock

Although the trading platform for patent technology stock has reached a certain scale in China, the operation of most of them is not satisfactory, which is reflected in such phenomena as inactive trading, relying on policy to survive, and intensifying competition in the industry. The main reasons for the above phenomena are as follows: 1) System incentives. As an important supplier of technology, university teachers pay more attention to the subject funds and academic research than to the economic benefits of technology transfer, resulting in low enthusiasm for technology transfer. 2. The non-standard nature of patent technology determines the negotiation between the two parties and the valuation of the subject matter of the transaction need to consume more time, resulting in low transaction flow. 3. Lack of intermediary service system support. Although technology transfer has been developed in China for many years, the quality of institutions engaged in patent intermediary services is uneven, and the number of institutions involved in key services (such as technology valuation, patent operation, equity participation and M&A consultation, etc.) is relatively small, making it difficult for the exchange to provide a full chain of services.

The case for the development of technology exchanges

Against the above background, the China Technology Exchange (hereinafter referred to as "CTEC") and the technology exchange represented by the Shanghai United Assets and Equity Exchange (hereinafter referred to as "SEHK") have conducted a series of meaningful business model exploration for the It has made positive contributions to technology transfer and technology market cultivation, and is expected to achieve further development in the future with favorable policies.

A brief analysis of the business model of UNICRI

The business of the China Technology Exchange involves technology transactions, financing services and supporting services. In terms of technology trading, Sinotech took the lead in launching patent auction, capacity trading and other services; in terms of technology financing, Sinotech, the Beijing Equity Exchange and the Beijing Financial Assets Exchange jointly set up the "Information Disclosure and Financing Trading Platform for Chinese SMEs"; in terms of public services, Sinotech has become the first enterprise selected by the Ministry of Science and Technology to provide information disclosure and financing services. "National Technology Transfer Demonstration Agency", "National Patent Technology (Beijing) Exhibition and Trading Center" selected by the State Intellectual Property Office, "Pilot Work of Technology Entry and Trading of Military and Civil Integration" selected by the Ministry of Industry and Information Technology of China. "Zhongguancun Trademark Service Center", jointly recognized by the pilot unit, the Municipal Administration of Industry and Commerce and the Zhongguancun Administrative Committee. Its business model has the following features: 1. One of its main business sources is military-to-civilian technology. Relying on the cooperative relationship with the Department of Military-Civilian Integration of the Ministry of Industry and Information Technology, Sinotech has acquired a large amount of high-quality military-to-civilian technology, which has contributed to its considerable business profits. 2. Universities and research institutes provide a large amount of technical and professional resources. 3. 3. online platform to accelerate the transaction process. Sinotech has an online platform "QiE Net", which provides listing information, technical intermediary information and exhibition platform for both supply and demand sides through convenient and friendly interface.

The Stock Exchange's business model in a nutshell

The business of Shanghai United Property Rights Exchange involves property rights trading, investment and financing services and enterprise restructuring and listing consulting. Its main business scope includes property rights and equity transactions for enterprises of all types and all types of ownership; the transfer and trading of intellectual property rights and scientific and technological achievements (projects); transaction services for the National "863" Project (Shanghai) Promotion Centre; strategic adjustments, such as the entry and exit of State-owned assets; designated venues for the transfer and trading of State-owned property rights for central enterprises; M&A transaction services for foreign investors; and corporate restructuring and M&A services. Supporting services for enterprise restructuring and listing; financing services for small and medium-sized enterprises; project financing services; entry and exit services for venture capital investment; equity trusteeship and transfer services for non-listed limited companies; and other businesses authorized by the state and local governments. Its business model has the following characteristics: 1. State-owned assets drive technology property rights transactions. 2. The Stock Exchange is owned by the State-owned Assets Supervision and Administration Commission of the People's Republic of China (SASAC), which stipulates that transactions of state-owned assets in Shanghai and surrounding areas must be conducted through the Stock Exchange. 2. Financial resources drive the development of equity trading. The Stock Exchange, located in Shanghai, has a large number of high-quality financial institutions, which provide strong support for the Stock Exchange to carry out equity transfer, mergers and acquisitions, trusteeship and project financing.

Comparison of the business models of Sinotech and the Stock Exchange

The business differences between Sinotech and SEHK are determined by their operating systems, shareholder resources and geographical characteristics: 1. Sinotech specializes in technology transactions, with special technologies (especially military-to-civilian technologies) being the focus of transactions, while SEHK deals in all types of state-owned assets, with special technologies being only a part of the transaction targets; 2. Sinotech's shareholders include resources of CAS, and most of the transaction targets and intermediary resources are the same as those of The Stock Exchange, whose shareholder is the SASAC, is more likely to provide M&A, equity transfer and corporate restructuring advisory services for technology transactions. 3. Sinotech, located in Beijing and rich in resources from universities and ministries, is more likely to provide R&D and policy support for technology transactions, while the Stock Exchange, located in Shanghai and active in financial business, is more likely to provide M&A, equity transfer and corporate restructuring advisory services for technology transactions.

The future of technology trading is set for big growth amid policy headwinds

The trilogy (the revised Law on the Promotion of the Transformation of Scientific and Technological Achievements, the Provisions on the Implementation of the Law on the Promotion of the Transformation of Scientific and Technological Achievements, and the Action Plan for the Promotion of the Transformation of Scientific and Technological Achievements) provides systematic incentives for technology trading platforms. Firstly, the revised Law on the Promotion of the Transformation of Scientific and Technological Achievements encourages the listing and auction of technologies in the public trading market, and the creation of technology intermediary service agencies (providing trading venues, information platforms and services such as information retrieval, processing and analysis, evaluation and brokerage). Second, the Implementation of Certain Provisions of the Law on the Promotion of the Transformation of Scientific and Technological Achievements supplemented the mechanism for exempting unit leaders from liability. Unit leaders in the performance of due diligence obligations, no illegal profits, on the premise of exempting them from the pricing of scientific and technological achievements due to subsequent changes in the value of scientific and technological achievements into decision-making responsibilities. Again, the Action Plan to Promote the Transfer and Transformation of Scientific and Technological Achievements proposes to connect technology transfer service providers, investment and financing institutions, universities, research institutes and enterprises through an Internet platform, and to rely on professional institutions to provide professional services such as information dissemination, financing and mergers and acquisitions, public listing, bidding auctions, consulting and counseling, and to guide the listing, trading and publicity of scientific and technological achievements of universities, research institutes and state-owned enterprises. Relying on policy dividends and institutional preferences, the future technology exchange will achieve leapfrog development in such areas as the entry of technology transactions, concentration of intermediaries, pricing and decision-making on achievements, integration of online resources and development of professional services.

II. Recommendations for the development of technology exchanges

Improving institutional mechanisms to encourage inbound trading

For the entry of universities, research institutes and enterprises, firstly, policies are needed to deepen the guidance for teachers to engage in technology transfer, reverse the concept of teachers' emphasis on teaching and research funds, and increase the rewards and subsidies for technology licensing and technology share performance; secondly, the exchange needs to learn from the experience of the New Third Board, enhance its brand image, focus on the regularity of both sides of the transaction and provide post-evaluation certification to ensure the confidence of the counterparties in the entry; thirdly The government could become a principal of the exchange, entrusting the exchange with public services (such as technology valuation, patent operations, M&A and equity advisory), thus reducing the burden on the government while satisfying the need to catch up on technology transactions.

Product stratification for socially responsible and profitable purposes

For exchanges, there is a need to assume social responsibility to promote the transformation of scientific and technological achievements, while at the same time meeting their own operational and profit-making objectives (for exchanges that operate as businesses).

Thus, product layering can appropriately meet the dual needs of the exchange: on the one hand, individual technology transactions can be treated as basic services, not for profit, but for the public social responsibility of technology transformation; on the other hand, businesses such as technology equity and technology M&A can be set up as derivative services, aiming to achieve the exchange's profitability goals by providing associated value-added services such as human, financial, legal, valuation and consulting. and long-term development needs.

Focusing on top design and balancing innovation and non-compliance

In order to enhance trading liquidity, exchanges have a need for product innovation, such as transition to financial products, while the current government frequently introduces corresponding policies aimed at preventing systemic financial risks, resulting in a conflict between product innovation and policy boundaries. Therefore, exchanges should, firstly, clarify the red line of policy and explore business and mechanism innovation under the condition of legal compliance; secondly, the top-level design should clarify the dialectical relationship between innovation and violation of rules and regulations.

Fostering a support system for technology transfer services

For exchanges operating as enterprises, they not only need policy support from the local government, but also need to explore differentiated business routes and characteristics to achieve long-term development. Specialized and specialized technology intermediaries will be the core market competitiveness of exchanges in the future. Exchanges wishing to provide value-added services such as targeted research and development, technology shareholding, M&A transactions, patent operation, valuation services, appraisal services, etc. need to introduce high-quality technology intermediaries as service support. Firstly, the government should formulate a special training program for technology intermediaries and entrust corresponding training institutions to cultivate talents and institutions specializing in technology valuation, patent operation, technology shareholding, technology M&A, etc. Secondly, the government should support a professional technology transfer platform to gather corresponding intermediaries to provide a full chain and multi-level service for technology licensing, technology shareholding, technology M&A (attracting intermediaries to the platform, and providing a wide range of services for intermediaries). For the platform, it can achieve scale effect to enrich business sources; for the platform, it can achieve the purpose of acquiring professional service support system and differentiated operation); thirdly, the exchange (for market-oriented stock exchanges) needs to introduce strategic shareholders (such as technology enterprises, property rights exchanges and technology parks) to acquire relevant service resources from shareholders and realize win-win cooperation.

Eastern Monitor, second half of 2016.

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