Billion-Dollar Bet: Why China's CEOs Are Rushing to Build New-Model Research Universities

March: Xi’an Jiaotong University’s “Treasure President”Wang ShuguoAnnounced his resignation. Just one week after retiring from this century-old prestigious university, he joinedFuyao University of Science and Technology(Provisional Title) Assumes the Position of President. It was [Entity Name] that Extended an Olive Branch to Him,Cao Dewang, Chairman of the Board of Fuyao University of Science and Technology and China’s “Glass King.”

In 2022, the Horen Charitable Foundation, initiated by Cao Dewang, donated an initial RMB 10 billion to establish Fuyao University of Science and Technology, positioned as a new-type research university. Beyond him, many other successful entrepreneurs have also invested in education and scientific research.

In 2018,Wu Yajun, Wang Donghui, Wang Jianlinand other entrepreneurs jointly donated to the Hangzhou West Lake Education Foundation, establishingWestlake University; 2020,Yu RenrongEstablished the Ningbo Yu Renrong Education Foundation, with an investment of RMB 10 billion.Ningbo Eastern Institute of Technology(Provisional Title).

"In recent years, CEOs seem to have flocked to establish new research-oriented universities."

To explore the origins of new-type research universities, one must begin with research universities.

In 1876, American banker Johns Hopkins established the world’s first research university.Johns Hopkins University, this university innovatively proposed focusing on expanding knowledge, graduate education, and encouraging research. In the wake of this initiative, a global trend emerged to establish research-oriented universities, includingHarvard, Yale, Columbia, PrincetonA number of long-established prestigious universities have also been affected and have begun to implement reforms.

In China, universities started relatively late and advocated for "building world-class universities" for a long period. It was not until 2006 that the concept of research-oriented universities, an imported idea, was formally introduced domestically. In the following decade, with the acceleration of globalization and rapid technological advancement, traditional research universities could no longer fully meet societal demands. Thus, aIt retains the foundational genes of a research university while editing and recombining certain defective genes that are ill-suited to modern challenges.a new type of research-oriented university has emerged.

In 2010, Shenzhen established China’s first new-type research university by drawing on the educational model of the Hong Kong University of Science and Technology.Southern University of Science and Technology, two years later, the Shanghai Municipal Government and the Chinese Academy of Sciences jointly establishedShanghaiTech University. However, after the establishment of these two universities, China’s new type of research-oriented universities fell into a period of stagnation.

Years later,Shi Yigong, Chen Shiyi, Pan Jianwei, Rao Yi, Qian Yingyi, Zhang Hui, Wang JianSeven leading academics jointly submitted the “Proposal on Piloting the Establishment of New Private Research-Oriented Universities,” which gained support, bringing new research-oriented universities back into the public spotlight. Following this,Westlake UniversityAfterward,Eastern Institute of Technology, NingbowithFuyao University of Science and TechnologyNews of its establishment has also been announced successively.

New-type research universities, on the one hand, inherit the advantages of traditional research universities and place greater emphasis on“Small but specialized” and interdisciplinary research directionsandApplication Prospectsand other aspects of development.

Unlike traditional universities,New research-oriented universities generally strive for breakthroughs at the frontier of a specific research direction.For instance, Westlake University offers programs in only three disciplinary categories: science, medicine, and engineering; Eastern Institute of Technology also focuses primarily on engineering as its main research direction; even Southern University of Science and Technology, the longest-established among these new institutions, offers only 37 undergraduate majors, whereas traditional universities typically offer more than 70 majors on average.

Although new-type research-oriented universities offer a limited variety of majors, their teaching content is not monolithic.Professional courses are all designed with the aim of cultivating "interdisciplinary talents."

Taking the School of Life Science and Technology at ShanghaiTech University as an example, the school primarily offers five majors: Protein Science and Biotechnology, Systems Biology and Translational Medicine, Stem Cell Biology and Regenerative Medicine, Quantitative Biology and Molecular Imaging, and Chemical Biology and Innovative Drugs. As evident from their titles, these majors are highly interdisciplinary and emphasize practical application.

At the level of talent development, such universities will moreRequirements for Students' Experimental (Practical) and Innovative AbilitiesTo this end, such universities adopt a more rigorous and selective approach to admissions. Southern University of Science and Technology (SUSTech) is the largest among China’s new-type research-oriented universities, yet its total student enrollment remains under 10,000, with nearly half being master’s and doctoral candidates. Since 2012, SUSTech has implemented the “6-3-1” comprehensive evaluation model for undergraduate admissions, wherein the National College Entrance Examination (Gaokao) score accounts for 60%, the university-administered aptitude test score accounts for 30%, and high school academic performance accounts for 10%. This approach aims to identify candidates with stronger overall competencies.

Meanwhile, the university has also provided ample space for students’ practical innovation through its hardware facilities. Established institutions such as Southern University of Science and Technology (SUSTech) and ShanghaiTech University boast numerous technological platforms, including State Key Laboratories. Even the newly established Fuyao University of Science and Technology has announced an additional investment of RMB 10 billion to equip itself with high-level research conditions.

All the “new” initiatives are designed to make the school a “Amplifier and Accelerator of "Innovative Human Capital Appreciation", ultimately resolving the technological bottlenecks.

Establishing a university is no easy feat. Beyond the substantial capital investment required, constraints on resources and policy make it even more challenging to build a high-caliber institution. Yet in reality, these university founders remain highly motivated.

From a macro perspective, new-type research universities are like a source of “living water,” carving out a “new path” for the development of scientific research and education in China.

In fact, every era has its own new type of higher education institution, much like the University of Oxford and the University of Cambridge in the United Kingdom during the First Industrial Revolution, Humboldt University of Berlin in Germany during the Second Industrial Revolution, and Stanford University in the United States during the Third Industrial Revolution. All of these institutions attempted to achieve breakthroughs in scientific research in new fields as “pioneers,” ultimately seizing the opportunities of their times and leading successive industrial revolutions.

Meanwhile, China's new type of research-oriented universities also shoulder this responsibility.We must not only overcome the constraints of “chokehold” technologies but also explore new research directions to seize the initiative in the new wave of technological revolution.

According to statistics, by the end of November 2023, Westlake University had published 16 high-impact papers in prestigious journals such as Nature, Science, and Cell. These studies span multiple fields, including life sciences and energy, and have achieved numerous world-first breakthroughs. For instance, in June 2023, Wu Jianping’s laboratory announced the first cryo-electron microscopy structure of the microtubule doublet complex in mouse and human sperm flagella, identified several sperm-specific microtubule-binding proteins, and thereby discovered a novel subtype of asthenozoospermia. In the same year, “Xigu I,” a new generation of biomimetic submersible prototype with genuine deep-sea operational capabilities and the greatest diving depth among its peers, successfully completed its inaugural dive to a depth of 2,000 meters. These pioneering scientific achievements have significantly elevated Westlake University’s reputation in the research community and exemplify the progress of China’s scientific research.

In addition to exploring research directions,New-type research universities are also pilot sites for new models of higher education development.Ten years ago, the credit system was nearly the preferred educational model in Chinese universities, while Southern University of Science and Technology (SUSTech) had already begun experimenting with the residential college and tutorial systems. Practice has proven that this educational model not only enables individualized instruction to maximize talent development but also facilitates targeted cultivation of personnel for cutting-edge research. Today, many established prestigious universities, such as Southeast University and Beihang University, have also adopted this new educational framework.

From the perspective of university founders, particularly these entrepreneurs, establishing new-type research universities also aligns with their strategic intentions.

First, universities with corporate sponsorship backgrounds,Certain considerations are taken into account when formulating research directions.. As Cao Dewang, Chairman of the Board of Fuyao University of Science and Technology, once stated: “Our approach to education emulates the European model, particularly that of Germany, by adopting a differentiated strategy that targets current gaps in the training of manufacturing talent, with the aim of cultivating industry-oriented, craftsman-style leadership professionals.”

As the world’s largest specialized supplier of automotive glass, Fuyao Group’s demand for innovative manufacturing technologies is self-evident. Therefore, the establishment of Fuyao University of Science and Technology not only offers an opportunity to overcome technical bottlenecks in China’s manufacturing sector and enhance overall quality, but also serves as a source of new technologies for Fuyao Group.

Of course,Establishing universities can further enhance corporate visibility.Just as the Stanfords, the “railroad tycoons,” donated to establish Stanford University and propelled their company’s name to global prominence, Fuyao University of Science and Technology, positioned as China’s counterpart to Stanford, may similarly elevate the global recognition of the Fuyao Group in the future.

Finally,The establishment of universities also reflects the personal sentiments of entrepreneurs.. Nearly all universities established with corporate support have been located in the cities where their sponsoring enterprises are headquartered. This trend reflects, on one hand, entrepreneurs’ commitment to contributing to education in their hometowns, and on the other, it strengthens collaboration and exchange between enterprises and universities.

Universities supported by non-governmental entities,The organizational structure naturally forms a closed loop of “industry-academia-research,” creating fertile ground for the commercialization of research findings.。

In June 2020, Westlake University’s first independently developed technological achievement was successfully commercialized through the establishment of Westlake Biopharmaceutical Co., Ltd., which officially announced the completion of its Pre-A financing round, raising nearly RMB 100 million. In addition, several other incubated and established enterprises, including Westlake Yanshan, Westlake Xinchen, Westlake Sichuang, Westlake Lingxi, and Westlake Intelligent Vision, have demonstrated “star quality” and attracted significant interest from investors. The success of Westlake University in technology transfer is no accident; indeed, it highlights the advantages that new-type research-oriented universities possess in the realm of commercialization.

The advantages in cultivating application-oriented talents need no elaboration. Such universities emphasize applicability and comprehensiveness in talent development, enabling researchers to naturally consider practical implementation during project initiation, thereby significantly improving the success rate of technology transfer. Furthermore, their specialized research is sufficiently focused, allowing for collaborative efforts to tackle specific challenges, which proves more efficient than the isolated endeavors of other teams.

andFlexible Conversion Mechanism, andInherent Market Advantagesis the “trump card” of new-type research-oriented universities.

Compared with traditional universities, new research-oriented universities with participation from social forces are more “enterprise-like” in their technology transfer activities. For example, Westlake University rapidly established a Technology Transfer Office within one year of its founding. The office does not offer guaranteed lifetime employment (“iron rice bowl”) and operates on an enterprise model of self-sustainability, where performance-based compensation better motivates the staff involved in technology transfer.

In addition, Westlake University (Hangzhou) Equity Investment Co., Ltd. was established in 2020, enabling the entity to raise various forms of capital from external sources under its corporate name, set up venture capital or private equity funds, and conduct direct VC/PE investments. This structure also allows for flexible funding of incubated projects, minimizing constraints imposed by cumbersome administrative procedures.

The market advantages of new research-oriented universities are even more pronounced. Universities co-founded by enterprises are more grounded and maintain closer ties with the market compared to traditional universities that remain isolated in their ivory towers. On this basis, while supporting established collaborations between enterprises and universities, cooperation between other enterprises and local governments also proceeds more smoothly.

In 2018, Westlake University signed a collaboration agreement with Bozhi Lin Robotics Company and established the “Westlake University–Bozhi Lin Robotics Joint Research Institute.” In 2023, Ningbo Eastern Institute of Technology announced a partnership with Zhenhai District to jointly establish the Ningbo Eastern Institute of Technology Industrial Technology Research Institute. Even Fuyao University of Science and Technology, which has not yet begun student recruitment, signed a cooperation agreement with Siemens in 2024 to jointly cultivate talent for “Industry 4.0.”

On the one hand, universities can provide intellectual support and talent services to enterprises and regions; on the other hand, enterprises and local governments can feed market demands back to universities, thereby facilitating targeted translation of scientific research achievements.This approach not only enhances the competitiveness of both parties but also jointly promotes the efficiency of scientific and technological transfer.

In the process of building new research-oriented universities, almost all of them have benchmarked against prestigious overseas private institutions. For instance, Fuyao University of Science and Technology has modeled itself after Stanford University in the United States, adopting not only a board of trustees system but also emphasizing the integration of industry and education.

Despite numerous similarities,"Domestic new-type research universities cannot be equated with overseas prestigious private institutions."

The primary funding sources for new research-oriented universities are government appropriations, research project grants, and social donations; although they also enjoy support from prominent business leaders,Operationally, it is still subject to greater government regulation and constraints.. However, they also enjoy greater policy support and resource guarantees.

For instance, the establishment of Westlake University relied on the Westlake Education Foundation, which was funded by donations from various sectors of society; nevertheless, it still required approval from the Ministry of Education to be formally established. In parallel, the government proposed and implemented initiatives such as the “315” Scientific and Technological Innovation System Construction Project and the “Dual Peaks, Dual Leaders + X” program, thereby providing Westlake University with broader opportunities for scientific research and development.

In contrast, overseas private universities operate more like enterprises, enjoying greater autonomy in their operations. They can flexibly adjust academic programs and teaching methods in response to market demands. However, excessive autonomy may lead some private institutions to prioritize their own interests, favoring personalized education in program design with a focus on meeting societal needs.

Admittedly, in the course of their development, new research-oriented universities often need to draw upon and absorb high-quality resources from international higher education, and engage in international cooperation and exchanges to enhance their level of internationalization. Nevertheless, it is undeniable thatThey also integrate local culture and social needs, forming educational models and development pathways suited to local contexts.

Overall, new-type research universities can not only take the lead in exploring frontier scientific research directions but also serve as pilot sites for innovative talent development models. In terms of technology transfer, they can leverage their inherent advantages to align with market demands and facilitate the commercialization of scientific achievements.

However, these do not constitute the full interpretation of “new.” The “newness” of new-type research universities is a relative and dynamic concept. As times progress, technology advances, and educational philosophies evolve, such institutions are continuously endowed with new connotations and emergent content. The key to maintaining their “newness” lies in continuous reform and innovation.

Benchmarking against world-renowned universities, the new type of research-oriented university should not simply replicate existing models but instead explore a talent development framework better suited to local contexts. This presents both a challenge and an opportunity.