Overregulation Hinders Innovation: Why Research Institutions Should Loosen Control to Accelerate Medical Translation

Since 2012,Switzerland has ranked first in the Global Innovation Index for nine consecutive years., and when asked about Switzerland’s experience in innovation, a senior expert responded, “A country should not have a policy specifically designed to promote innovation, because few countries have had successful innovation policies,”Switzerland’s ability to achieve excellence in innovation stems precisely from its lack of an innovation policy.。”

This is certainly not to say that Switzerland does nothing; rather, it truly practices strategic selectivity in innovation—knowing what to pursue and what to forgo—namely,"Take action" in areas that can truly drive innovation, and "refrain from action" in areas beyond one's capabilities that may hinder innovation.。

This is actually quite reasonable. Because innovation and translation are essentially a relativeFlexible and DiversifiedThroughout the process, each innovation project is independent, and the elements involved in each project are diverse. Consequently, the pain points encountered and the resources required during the innovation and translation phases differ from one project to another. This distinction is particularly pronounced in the healthcare sector.

Therefore, as the first "guide" for scientists on the path of medical innovation and translation,Research institutions based on universities and medical centersMerely mandating participation in services and management in a narrow sense may inadvertently “do more harm than good with good intentions.”

So, what exactly should research institutions do?

In the past one to two years, driven by both policy and market forces, domestic research institutions and universities have been successively establishing technology transfer centers or innovation centers, with their core objective beingFacilitating the successful incubation of in-house scientists' innovative projects by providing resource technologies。

Its key areas of focus are primarily concentrated in the following aspects:

First, streamline the innovation chain by establishing a mature and efficient system for innovation translation within the hospital through policies or management measures.。

withShenzhen Institute of Advanced Technologyas an example. To accelerate the translation of in-house research projects, the Shenzhen Institute of Advanced Technology has explored“Upstairs-Downstairs Innovation and Entrepreneurship Complex”This innovative model for aligning technology with industry, anchored by the Shenzhen Engineering Biology Industry Innovation Center, supports researchers “upstairs” in conducting original innovation activities, while entrepreneurs “downstairs” carry out engineering development and pilot-scale translation of these innovations. By enabling scientists and entrepreneurs to interact within the same building, this approach effectively breaks down spatial barriers between research institutions and startups, overcomes the bottleneck of limited facilities and technical platforms faced by early-stage companies, and shortens the time cycle from original innovation to industrial commercialization.

Second, establish public experimental platforms to provide a carrier for scientists' innovation.

byTsinghua Industrial Research InstituteInitiated and EstablishedGlobal Health Industry Innovation Center(Taking GHIC as an example,) it has established a full-chain laboratory platform to support innovation by on-campus scientists, providing services across all aspects of experimental work. In addition, GHIC regularly “updates” its laboratory equipment to meet the evolving needs of scientific innovation.

Third, attract high-caliber talent, primarily by recruiting scientists who drive innovation and technology transfer managers who facilitate commercialization.

Let’s start with scientists. In recent years, to strengthen their scientific research capabilities, major domestic research institutions and universities have been recruiting top-tier scientific talent from around the world. Taking“Minshan Action”As an example, this initiative represents a key measure introduced by the Chengdu High-Tech Zone to attract and recruit leading talents and innovative teams. It was under this program that Professor Li Kang from West China Hospital returned to China from abroad, and he is currently conducting research in medical artificial intelligence with his team.

Having discussed scientists, we now turn to technology transfer professionals. Long-term research conducted by VCBeat’s Orange Fruit Bureau has revealed thatProfessional Technology Managers Are in Shorter Supply Than Top-Tier Scientific Research Talents in China, which is reflected not only in the absolute number but also in the quality of talent, specifically the professional competence of technology transfer managers, where there is a significant gap compared to developed countries in Europe and America.

It is precisely on this basis that domestic research institutions and universities are now consciously building their own teams of technology transfer professionals, recruiting from the broader society on one hand, and conducting training within their own systems on the other.

Fourth, market elements are introduced, with the core primarily reflected in capital linkages.

To accelerate the incubation of innovative projects, research institutes and universities are currentlyRaising Angel Funding, fundraising methods are generally divided into two types,One type is self-led., such as holding funds managed by research institutions and universities, as well as alumni funds established by alumni;The other is market-oriented., research institutions and universities select a group of high-quality investment firms to make targeted investments in innovative projects.

which completed a tens-of-millions-yuan angel financing round in the first quarter of this yearPuyi Biotechas an example, among its institutional investors areShuimu Venture Capital, a specialized investment institution for the industrialization of scientific and technological achievements under the Tsinghua University Industrial Technology Research Institute.

In medical innovation and translation, although we have only just begun, the pace of progress is remarkably rapid.

On one hand, in terms of the number of patents, according to data released by the World Intellectual Property Organization (WIPO), starting from 2019,China has topped the world in patent volume for three consecutive years.

On the other hand, in terms of market performance by startups, according to statistics from VBInsight, a total of in China’s healthcare sector occurred in the first quarter of 202256 Early-Stage Investment and Financing Events, total financing amountOver 3.5 billion yuan, both the number of financing deals and the total financing amount reached record highs.

However, the issues are equally apparent, particularly in terms of the critical conversion rate. According to statistical data,Currently, the conversion rate of scientific research achievements in China is less than 10%; when focusing specifically on the medical field, this rate drops to as low as 5%.

The reasons for this are, of course, varied, such asImprecise policy guidance, inherent limitations in scientists’ capabilities, a shortage of specialized talent, and an imperfect technology transfer system.

However, for research institutes and universities, their limitations are also evident.On the one hand, there is “insufficient regulation”, namely, research institutions and universities demonstrate weak participation in deep-transformation stages such as project evaluation and market linkage;On the other hand, it is "overstepping boundaries", that is, in the process of translation, research institutes and universities have participated in services and management in a narrow sense, but instead have become an "obstacle" to scientists' progress.

Specifically, this is reflected in three core dimensions:

1. The approval process is overly cumbersome and lacks transparency.. During the translation process, approval is necessary as it can to some extent safeguard the legitimacy and standardization of research projects. However, based on current circumstances, within the vast majority of domestic research institutions and universities, the approval processes are highly unreasonable, which is mainly reflected in two aspects,First is "cumbersome", namely, the approval process is relatively complex and has a long time cycle;Second, "opacity", i.e., the approval system is imperfect, with no designated institutions or responsible persons in certain stages.

A senior scientist once told VCBeat’s Orange Fruit Bureau in an interview, “After returning to China, I spent a great deal of time learning the regulatory system and then worked to advance the process step by step. However, much of the time was spent shuttling back and forth between various stages, which ultimately held no practical significance.”The absence of a robust intellectual property rights management framework has rendered the landscape ambiguous and uncertain.”

Second, scientists are mandatorily required to participate in activities that lack substantive value.Within the chain of translating medical innovations into practice, the core mission of research institutions and universities should be to empower scientists. A key aspect of this is facilitating scientists’ access to a broader range of resources through activities such as forums, project pitch sessions, seminars, and matchmaking events.

Although research institutions and universities have good intentions, these activities actually bring minimal benefits to scientists and, to some extent, delay their progress in the translation process. A university professor once told VCBeat’s Orange Fruit Bureau in an interview, “In my busiest week, I attended four events, most of which were recommended by the university. Two of them required business trips, so I was essentially shuttling between various events that week, with no time at all to advance my own research projects.”

Third, state-owned shares make it “difficult for scientists to move forward” in market promotion.Currently, scientific research projects in China are basically allState-Owned Asset Management ModelTherefore, scientists are required to follow formal procedures for any action they take. However, as previously mentioned, the approval processes at most research institutions and universities are currently plagued by cumbersome and opaque procedures, which inevitably constitute a significant obstacle on the path to commercialization.

Take the entry of investment institutions as an example. Many healthcare projects are indeed highly marketable, but the internal approval processes within hospitals are excessively lengthy, often taking six months or even longer to complete. By that time, the original investment proposal may require adjustments, or re-evaluation may be necessary due to changes in valuation, causing some investment firms to “shy away from the challenge.”

Even if investment institutions are willing to wait, they may miss the most opportune market window, causing the eventually developed technology to lose its competitive edge and struggle to gain a foothold in the market.

Just as scientists have responsibilities in the entrepreneurial process, they should focus solely on their areas of expertise, delegate tasks outside their competence to others, or continuously work to bridge those gaps through dedicated effort.

In fact, research institutions, as enablers of scientists, are no different.

First, excel at what you do best., broadly categorized into the following points:1. Foster a strong culture of innovation within the hospital, continuously tapping into the innovative potential of scientists;Second, establish a high-quality laboratory platform, providing support for scientists to conduct research;3. Establish an efficient operational and regulatory system, on the one hand, it serves as an "umbrella" protecting scientists on their path forward; on the other hand, it involves implementing reasonable controls, such as prohibiting scientists from arbitrarily abandoning or transferring patents.

Next is to strengthen the execution of one’s core responsibilities, which is primarily reflected in the assessment and linkage of market resources.First, assessment: research institutions can conduct precise evaluations of scientists’ projects and propose reasonable plans based on the evaluation results. Second, linkage: this primarily refers to investment firms expanding their proprietary “market resource pool” through two approaches—“in-house development” or “recruitment.”

Finally, let go of what you are not good at, which is mainly divided into two aspects:On the one hand, in terms of approval, refraining from excessive involvement in core processes that should be market-driven, such as capital inflows;On the other hand, it is the exit of state-owned shares, when scientists' projects are fully commercialized, research institutions should choose to "let go" in terms of equity.

Throughout the entire process of innovation and translation, the importance of research institutions is self-evident. However, everything has its “ceiling,” so it is essential to know when to stop.

From the perspective of research institutions, as the first “mentors” for scientists, their core focus should be more on tapping into innovative potential. In terms of how to unleash this potential, research institutions should adopt a targeted approach by appropriately delegating authority and enhancing scientists’ autonomy, which may yield the best results.