Tech Giants Embrace Scientific Innovation: Tencent Commits $14B Over a Decade to Fundamental Research

This article was co-authored by Shi Yi and Shen Yuting.

Tencent to Invest RMB 10 Billion in Basic Scientific Research"New Cornerstone Investigator Program"It has attracted widespread attention across the entire scientific research community. On one hand, there is the backing of Tencent, a major “IP”; on the other hand, there are elements that immediately capture attention.10 billion“Huge investment.”

It is reported that the “New Cornerstone Investigator Program” is a new type of basic research funding initiative focused on original innovation, encouraging free exploration, and operating as a public welfare endeavor. Under the guidance of the China Association for Science and Technology, the program is scientist-led, funded by Tencent, and operated independently. Tencent will invest RMB 10 billion over ten years to provide long-term, stable support for a cohort of outstanding scientists to devote themselves to basic research and achieve original innovations from “0 to 1.”

Starting in 2022, the “New Cornerstone Investigator Program” will focus onMathematics and Physical Sciences, Biology and Medicineprovides funding to 60 scientists across two major scientific fields. The specific funding categories are divided into two types,1. Experimental projects: no more than RMB 5 million per person per year; 2. Theoretical projects: no more than RMB 3 million per person per year, with continuous funding for five years。

In fact, this is not the first time Tencent has “stepped in” to the field of scientific and technological achievement transformation. As early as 2018, Tencent launched the “Scientist Exploration Award” to support basic scientific research. In the following years, Tencent has also been exploring specific models and access paths for participating in the transformation of scientific and technological achievements.

Of course, Tencent is not the only internet giant making significant efforts in the commercialization of scientific research achievements. In the past year or two, Alibaba, Baidu, ByteDance, and others have all been deeply involved in this industry transformation focused on original innovation, each in their own unique way.

So, why have major internet companies chosen to focus on the commercialization of scientific research achievements at this moment? How exactly are they participating in this process? What objectives do they aim to achieve behind these efforts? To answer these questions,VCBeat Orange BureauA deep analysis was conducted on this matter.

Major Chinese tech companies are always eager to engage in new trends, and the current push for “translation of scientific research achievements” fits this profile perfectly.

First, from a policy perspective, both national and local governments currently place high priority on the translation of scientific research achievements into practical applications, having introduced numerous relevant policies in recent years. Second, from the standpoint of innovation supply, academic and research institutions, driven by the immediate pressure of “performance evaluations,” are now more focused than ever on translating their research outcomes. Finally, from the perspective of implementation, industry players—represented by investment firms—have demonstrated a significantly heightened level of attention and execution strength toward early-stage scientific research achievements compared to the past.

So, why have major internet companies chosen to get involved? Beyond market hype, there are, of course, other reasons.

First, based onBrand PromotionThe commercialization of scientific and technological achievements not only enjoys high visibility at present but also represents a core area requiring substantial support. The participation of major internet companies can rapidly enhance their market influence while simultaneously garnering positive public sentiment, thereby yielding significant marketing dividends for these tech giants.

Next is based onCorporate Future Development NeedsOn the one hand, scientists are the key personnel in the translation of scientific research achievements. By engaging deeply with them through participation in scientific research, major internet companies will significantly facilitate the recruitment of a cohort of top-tier global scientific talent. On the other hand, research outcomes generated with the involvement of these tech giants will help upgrade and iterate their product pipelines, while also enhancing the overall technological sophistication of the enterprises. This will equip major internet companies with more differentiated core competencies for future market competition.

Finally, based on itsBreakthrough Needs in Emerging Industry Fields. Although major internet companies all “made their name” in the internet sector, they have continuously expanded into other frontier industries during their corporate development. The healthcare sector is one such area; currently, nearly all major internet companies are deeply involved and have established separate subsidiary brands for independent operations.

By engaging in scientific research and concentrating efforts in this field, the core competitiveness of its healthcare division will be enhanced, while also generating substantial market value for the entire group.

As previously mentioned, the translation of scientific research achievements in China is currently in its nascent stage, thus requiring participation and support from multiple stakeholders across the industry chain. So, what exactly can major internet companies contribute to this innovation and commercialization pipeline? Their common strengths lie in their large-scale platforms, abundant resources, and substantial capital.

First,Major Platforms, primarily referring to the technical platform that provides foundational support for scientists’ research and development. The successful commercialization of products inevitably relies on the underpinning of such platforms, while high-quality equipment and facilities greatly empower scientific research. Currently, Alibaba is vigorously advancing its AI healthcare initiatives. To this end, its DAMO Academy has assembled advanced research equipment and facilities to establish a series of Machine Intelligence laboratories, including the Speech Lab, Vision Lab, and Language Technology Lab.

Next isMulti-Resource. The commercialization of scientific and technological achievements is a deepening of research and development, as well as a process of resource linkage. From the laboratory to the marketplace, this transformation requires the involvement of various stakeholders.

First, the inclusion of scientific researchers.Scientists are the source of original innovation; it is only with “people” that technologies come into being. It is reported that in March 2022, Alibaba’s “Research Intern Program” attracted more than 1,000 students from over 200 universities worldwide, with doctoral candidates accounting for more than 70% of participants.

Second, the involvement of research institutes and universities.In the translation of scientific research, academic and research institutions serve as incubators for talent. Communication and collaboration among these institutions are essential to spur the emergence of more cutting-edge technologies. It is reported that Tencent has established “Tencent Innovation Clubs” at 21 universities across China, hosting over 200 activities annually.

Third, the involvement of industrial institutions.Major internet companies are themselves hubs of high industrial concentration, maintaining deep collaborations with numerous institutions, while the translation of scientific research achievements is a multidirectional and diversified process.

Finally,Funding SupportMany researchers have stated that the greatest fear in translating scientific research into practical applications is a lack of funding, which can lead to R&D being abruptly halted and companies struggling to operate. Of course, many researchers are also concerned about making ends meet. To address this, Tencent has added a medical science category to this year’s “Scientist Exploration Award,” providing researchers with 3 million yuan in funding.

In Tencent’s recently launched “New Cornerstone Investigator Program,” it is explicitly stated that RMB 10 billion will be invested over the next decade to provide long-term, stable support for a cohort of outstanding scientists to devote themselves to basic research, thereby achieving“From 0 to 1”of original innovation.

Although major internet companies are currently flocking to the field of translating scientific research achievements into practical applications, their respective areas of focus remain distinct.

· Tencent: Scientist-led

In its strategy for commercializing scientific research outcomes, Tencent places greater emphasis on the scientists themselves. Since launching the Rhino Bird Fund in 2021, Tencent has been providing R&D funding of RMB 150,000–200,000 to researchers and has established awards such as the “Creative Fund” and “Technical Standardization Research” to encourage basic research.

The most distinctive feature of the “New Cornerstone Investigator Program” launched this year is“Bet on the team, not the project”, which also demonstrates Tencent’s trust in and support for scientists, fully reflected in the funding amounts and duration.

Moreover, to better support scientists in their research and development efforts, Tencent has built the “Tencent Cloud Computing Power Resource Pool” for researchers. This resource offers management capabilities consistent with standard CVM (Cloud Virtual Machine) instances and can be used for scenarios such as deep learning training and inference, graphics and image processing, and scientific computing.

· Alibaba: Establishing an R&D Middle Platform

Alibaba’s core strength in its industrial operations lies in the development of its middle-platform infrastructure, and now the company is extending this advantage to the field of translating scientific research achievements into practical applications.

Specifically, a major role of the middle platform is to rapidly incubate new products and accelerate the development of innovative businesses. Data from various business middle platforms—such as patient services, chronic disease management, and marketing services—are fed into the AI middle platform, where analysis and R&D are conducted through processes including semantic analysis and rule engines.

· ByteDance: Interdisciplinary Collaboration

Unlike Tencent and Alibaba, ByteDance is more eager in the field of translating scientific research achievements into practical applicationsLeverage AI expertise to foster interdisciplinary collaboration with the pharmaceutical industry, thereby entering the process of innovation and translation of medical research achievements.

ByteDance only formally entered the healthcare sector in 2020. Despite its late start, the company made decisive strategic moves, investing nearly RMB 500 million by the end of 2020 to complete multiple investments and acquisitions of medical science popularization platforms as well as healthcare and pharmaceutical companies, thereby building a solid foundation for its upcoming launch of “Xiaohe Health.”

Within less than two years since its official launch, “Xiaohe Health” successfully secured 15 invention patents, which have significantly enhanced the processing capabilities and speed for colorectal medical images and data.

It is evident that ByteDance’s establishment of an efficient online diagnosis and treatment platform, coupled with its multi-party collaborations with offline medical institutions, represents an attempt to create a closed-loop healthcare ecosystem integrating online and offline services. This strategy lays the foundation for talent acquisition and resource allocation, thereby supporting its future focus on scientific research.

Not only that, but ByteDance also established a medical laboratory in 2021 to provide medical services such as testing and inspection, medical research, and experimental development. This sends a signal that ByteDance is eager to enter the hotly contested field of innovative drug R&D, and willAI Labas a focal point for comprehensive strategic deployment.

· Baidu: Focus on Early-Stage Investment

In 2021, Baidu Health made significant investments in its content ecosystem, including health science popularization. Not only were all physicians from public hospitals under Gushengtang Group integrated into the Baidu Health platform, but it also launched“Medical+ Initiative”, “Merchant Empowerment Program”...and other initiatives, continuously deepening its content ecosystem strategy. Last June, Baidu led the investment round in Youlai Doctor, a popular science-based health education platform, marking a significant milestone in Baidu’s construction of its healthcare and medical services ecosystem.

In addition to ramping up its efforts on health science popularization platforms, Baidu has in recent years focused its investment attention on the early-stage healthcare market. Typical targets of its early-stage healthcare investments include Suzhi Biotech, an AI-driven drug discovery company, and Molecule Mind, an AI protein design platform.

Unlike other tech giants, Baidu relies more on its investment capabilities in the translation of scientific research achievements, primarily by selecting and incubating early-stage startups. In choosing these early projects, it mainly targets frontier areas that currently present clinical pain points and offer substantial market potential.

The translation of scientific and technological achievements is a protracted process, as well as a collaborative endeavor requiring the participation of multiple stakeholders across the industrial chain. Therefore, the influx of major internet companies will undoubtedly bring greater possibilities to innovation and commercialization, which are still in their nascent stages.

However, this does not guarantee tangible benefits. Even if major internet companies possess numerous core competencies, improper engagement strategies can still lead to failure in the commercialization of scientific research achievements. Such cases are not uncommon worldwide.

Therefore, amid the current surge in the commercialization of scientific research achievements, major internet companies mustReturning to Rational Thinkinginto the market, one should not act impulsively in response to market fluctuations; instead, one should identify the industry’s genuine pain points through comprehensive research, and then leverage its own strengths to address these gaps or strengthen core competencies in these areas—planning carefully before taking action.