Operating State-Owned Military Technology Research Institutes As Enterprises Problems And Measures To Take

The state-owned military technology research institutes (SMTRI) used to play an important role in China's defense industry and modernization. Recent years, with the transformation of China's central planed economy to market one, the inherent flaw with these institutes increasingly manifest itself. In one hand, a lot of research fruits end up wasted in archives. In the other hand, defense manufacturers are badly in need of new products and technologies. So, how to reform the existing operating model and find effective measures to tackle various problems arising from development is vital to SMTRIs.This paper analyses at first the internal situation of SMTRIs and external environment they are facing. In the author's opinion, the most prominent problems facing SMTRIs are old ideology, unclear property rights, inefficient management mechanisms, outdated accounting system and rigid HR system. Then, it explains the necessity of operating SMTRIs as enterprises. At last, citing the reform of S institute as an example, the paper probes into some key issues to which we must pay special attention in the process of reform and provides some suggestions.