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During the recent annual session of the Shanghai Municipal People’s Congress, representatives highlighted several areas needing improvement to bridge the gap between laboratory innovations and market-ready products. They emphasized the importance of implementing effective policies, securing funding, and fostering a robust research and industrial environment to accelerate this transition.
Wang Yanfeng, an elected delegate and executive dean of the artificial intelligence school at Shanghai Jiao Tong University, pointed out that a significant engineering gap persists, separating initial prototypes from commercially viable products. He explained that progress from prototypes to market-ready solutions remains hindered by inadequate coordination among industry players, academic institutions, research centers, and end-users, with collaboration still in its early stages.
He observed that the market currently lacks the specialized skills necessary to advance groundbreaking university research through detailed engineering processes. This results in many innovations remaining at the conceptual or prototype phase, unable to reach commercialization.
Using artificial intelligence as an example, Wang suggested establishing a dedicated program focused on “proof-of-concept” validation and pilot product development. This initiative would support emerging research institutions such as computing hubs and industrial technology laboratories with long-term, steady funding. The goal would be to facilitate systematic engineering development, reliability testing, and early-stage creation of products that have the potential for higher investment and commercialization.
Additionally, Wang recommended developing more adaptable, cross-institutional hiring and talent mobility systems. He called for refined intellectual property management frameworks and benefit-sharing models tailored to the fast-paced innovation cycles typical of AI. Emphasizing personnel incentives, he highlighted the need for improved evaluation mechanisms that motivate scientists and engineers to transform their research into marketable applications.
Liu Xuanyong, a deputy and dean of the College of Biological and Medical Engineering at Donghua University, suggested that local government agencies take a leading role in supporting collaborations between universities and industry. These partnerships could establish joint laboratories operated through shared investment, management, and recognition of achievements.
Liu also encouraged university research teams to leverage corporate incubators, pilot testing facilities, and production lines as extensions of their research efforts. This approach could help alleviate space and equipment constraints at universities while grounding research in real-world industrial environments.
He proposed reforming project-based teaching methods to incorporate actual technical challenges faced by companies. Students could work on practical problems, producing reports, research plans, and prototypes as part of their coursework—potentially replacing traditional thesis assessments with more application-oriented evaluations.
Han Wei, chairwoman of a leading Chinese science and technology incubator, stressed that top incubator practitioners should possess interdisciplinary skills—balancing technical expertise, business acumen, and the ability to connect industry, investment, and innovation ecosystems efficiently.
She recommended strengthening training programs for incubator staff by providing access to government-sponsored resources like Frontline Deployment Engineers and AI-focused startup programs. Clear career progression paths and growth opportunities for incubator professionals would be crucial to attracting and retaining talent.
Furthermore, Han advocated for elevating the social status of incubator professionals to draw elite talent into the science and tech services sector. She envisioned incubators evolving into “super connectors,” facilitating access to global high-end innovation resources.
According to the 2025 Shanghai Science and Technology Progress Report, compiled by the Shanghai Municipal Science and Technology Commission and released during the congress, the city’s R&D investment intensity last year was about 4.5 percent. Basic research accounted for roughly 12 percent of total R&D spending. The report also noted a 25 percent increase in technology licensing contracts, reaching CNY 649.7 billion ($90.2 billion). The city saw high-value invention patents as high as 65 per 10,000 residents, with Patent Cooperation Treaty applications rising by 12 percent to 7,446.
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