The Ministry of Finance has formulated an array of favorable policies to encourage private sector investment in R&D and innovation via partnerships with educational institutions (Box 1), and the Ministry of Education has provided incentives to universities to turn their research into practical products. In addition, the MOST published Guidelines for Promoting Strategic Consortium for Industrial S&T Innovation whose purpose is to steer the direction of the partnerships, and enable their effectiveness. Many Chinese provinces have also set up demonstration bases for such consortiums.