Chinese regulators are experimenting with industrial policies.
What do we mean?
The key steward of industrial policy, MIIT, recently issued a list of AI technologies that it wants to see developed. The list spanned 17 different areas, including:
intelligent connected vehicles medical imaging diagnosis systems neural network chips intelligent sensors intelligent cyber infrastructureFor each technology, there are development goals to be reached by 2020.
That’s all standard stuff.
But then MIIT did something new. They are employing a new method to pick who gets government support:MIIT issued an official request for tender, asking qualified companies and research institutes to apply for the opportunity to pursue each development goalThe government will then organize a group of experts to select no more than five entities for each technology.Those who win the contracts will have two years (until 2020) to develop the technology and prove to the government that they have met the goals.The government will then go all in – offering support to up to three companies that hit the targets for each technology.
Get smart: The key change here is that the central government is withholding support until they see some initial results.
The bottom line: China wants industrial policy to be more efficient.