Institutional structure and incentives of technology transfer : Some new evidence from Chinese universities

Purpose – The purpose of this paper is to understand different institutional mechanisms for promoting effective innovation diffusion and maximizing spillovers from fruitfulness of university‐industry linkages. Design/methodology/approach – The approach involved the content analysis of university documents and in‐depth interviews with university personnel. The paper investigated the types of changes which had been instituted by selected universities in regards to the management of invention disclosure and patent licensing procedures, policies for new business startups by faculty and graduates. The paper then studies how university incentive structures have been reshaped to encourage and facilitate engagement with industry. Findings – The types of changes have been instituted by select universities enhance research commercialization capacity in regards to the management of invention disclosure and patent licensing, policies for new business startups by faculty and graduates, and provision of seed capital, training and incubator facilities, especially the relationship between technology transfer offices and university administration, as well as faculty; how university incentive structure has been reshaped to encourage and facilitate engagement with industry; how gross royalties and/or net royalty income are distributed between university and faculty. Originality/value – This paper describes the important role of institutional underpinnings for building commercial linkages. It also explores what university policies and institutions shape the nature and fruitfulness of innovation diffusion in China.