Huai'an China News
Huai'an City Advances Scientific and Technological Achievements "Use First, Pay Later" Reform
time:2025-07-16

To expedite the transition of scientific and technological achievements into practical productivity, Huai'an City recently hosted a "use first, pay later" science and technology achievements promotion event. This initiative has established a precise connection channel among universities, research institutions, and enterprises, stimulating enterprise innovation while supporting the high-quality development of the local economy.

"Use first, pay later" refers to the practice of universities, colleges, and research institutions within and beyond the province licensing scientific and technological outcomes to enterprises for use. The licensing parties explicitly agree on payment methods such as "zero upfront fees + phased payments + revenue sharing" or "deferred payment." Payment is to occur at least one year after the license contract comes into effect or after the licensee generates revenue through products or services derived from the licensed scientific and technological achievements.

In recent years, Huai'an City has taken reforms in its science and technology systems and mechanisms as an entry point to systematically promote innovations in the "use first, pay later" model for scientific and technological achievements. In September 2024, efforts were made to support the Huaiyin Institute of Technology in pioneering trial implementations. By October, the institute issued a provisional implementation plan under the "use first, pay later" model for scientific and technological outcomes. Building on the pilot project, Huai'an City aims to expand external resources. The city relies on introduced scientific research institutions, such as the Southeast University National Technology Transfer Center (Huai'an Branch), to guide universities and colleges to license Huai'an-based enterprises under the "use first, pay later" model. By doing so, it aims to promote the implementation of high-quality results in the city and beyond and reduce corporate costs.

Currently, significant progress has been made in the reform of the "use first, pay later" model for scientific and technological achievements. Huaiyin Institute of Technology has initiated collaboration with over ten companies, including Suyan Jingshen, while numerous achievements from universities outside of Huai'an are being adopted in Huai'an via this innovative approach.