Joint Circular No. 892-TT/LB provides guidance on financial matters and rewards stipulated in the Regulation on Rationalization of Production and Technical Inventions and Patents issued together with Decree No. 31-CP dated January 23, 1981 by the Council of Ministers.

MINISTRY OF FINANCE-NATIONAL SCIENCE AND TECHNOLOGY COUNCIL ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
NUMBER: 892-TT/LB	HANOI, AUGUST 4, 1982

 

JOINT CIRCULAR

OF THE MINISTRY OF FINANCE - STATE COMMITTEE FOR SCIENCE AND TECHNOLOGY NUMBER 892-TT/LB AUGUST 4, 1982 GUIDING THE IMPLEMENTATION OF ISSUES ON FINANCIAL MATTERS AND REWARDS PROVIDED IN THE REGULATIONS ON TECHNICAL INNOVATIONS AND RATIONALIZATION OF PRODUCTION AND PATENTS ISSUED TOGETHER WITH DECREE NO. 31-CP JANUARY 23, 1981 OF THE COUNCIL OF MINISTERS

BASED ON Article 56 and 57 of the Regulations on technical innovations and rationalization of production and patents issued together with Decree No. 31-CP dated January 23, 1981 of the Council of Ministers (hereinafter referred to as the Regulations), the Ministry of Finance - State Committee for Science and Technology stipulates and guides the preparation of budgets, accounting, and settlement of expenditures for organizing trials and applying technical innovations and patents, rewarding authors, supporters of authors, and first-time organizers of application of technical innovations and patents, and implementing measures to promote activities related to technical innovations and patents as follows. I. REGARDING THE ORGANIZATION OF TRIALS AND APPLICATIONS OF TECHNICAL INNOVATIONS AND PATENTS

1. CONTENT OF EXPENDITURES

Expenditures for organizing trials and applying technical innovations and patents (hereinafter referred to as trials) include:

:

a) Wages and allowances or contractual fees for those directly involved in trials and other allowances according to regulations such as overtime pay, travel expenses:

b) Expenditures for raw materials, fuels, materials, and energy;

c) Expenditures for purchasing machinery, equipment, or tools; depreciation of fixed assets;

d) Expenditures for renovation or construction of small projects (if any);

e) Expenditures for technical preparation, design, and technology work.

The sources of funds to cover the costs of organizing trials and applying technical innovations and patents mentioned above are:

2. Sources of funding

:

a) For production and business units, they can be drawn from the development incentive fund (point 1, section II, Circular No. 3-TC/CNXD dated March 28, 1978 of the Ministry of Finance).

In addition to the aforementioned capital, production and business units may also receive additional funding from the research science fund and progressive technology application fund of the superior management agency or from credit funds for technological improvement and production rationalization according to the credit rules of the State Bank.

b) For administrative and service units, they can be taken from the unit's research science fund. Additionally, the unit may also receive additional support from the research science fund and progressive technology application fund of the superior management agency.

3. PREPARATION OF BUDGETS

The preparation of trial organization expenditure and revenue budgets (if any) is carried out according to the annual financial plan and current regulations regarding the use of various sources of capital and the issuance of capital for scientific research and progressive technology application work.

:

4. ACCOUNTING AND SETTLEMENT

All expenditures arising during the trial process, regardless of the source of funds, must be fully and accurately recorded, clearly distinguishing each expenditure according to its respective source of funds as the basis for settlement until the completion of the work.

:

For results obtained (assets, materials - capital) during the trial process, enterprises must record increases in assets and capital according to current regulations:

a) If it is fixed assets such as newly manufactured equipment, newly constructed facilities, or the remaining value of purchased tools and equipment, then record increases in fixed assets and capital.

b) If it is experimental products, raw materials, or materials resold internally or to another unit, then record increases in current assets and working capital.

At the end of the trial, units must prepare a comprehensive settlement of all revenues and expenditures related to the trial and actual expenditures after deducting recovered amounts according to the current settlement regulations applicable to each source of funds.

II. REGARDING THE APPLICATION OF TECHNICAL INNOVATIONS AND PATENTS

Expenditures for applying technical innovations and patents to production and related work include:

Expenditures for organizing trials and applying technical innovations and patents (hereinafter referred to as trials) include:

: a) Investment expenditures for basic construction serving the direct application of technical innovations and patents, such as investment in renovation or construction of facilities; improvement or new manufacturing of equipment and machinery, initial procurement of equipment, etc...

b) Production costs directly related to those directly involved in applying technical innovations and patents.

- Costs for raw materials, materials, and energy.

- Depreciation of fixed assets.

- Management costs.

The costs related to the application of technical innovations and patents mentioned above are covered by the following sources of funds:

2. Sources of funding

: a) For production and business units:

- Expenditures aimed at increasing the quantity or value of fixed assets are covered by the development incentive fund or the unit's basic construction investment fund or bank credit funds.

- Expenditures aimed at reducing repair costs for equipment and machinery or improving their usage value, which are defined as major repairs, are covered by the unit's major repair fund.

- Expenditures classified as working capital such as raw materials, materials, energy, wages, etc., are covered by the unit's working capital.

b) For administrative and service units:

- Expenditures aimed at increasing the quantity or value of fixed assets are covered by the unit's basic construction investment fund.

- Other expenditures directly related to the application of technical innovations and patents are covered by the unit's administrative or service funds.

The application of technical innovations and patents in units must comply with the provisions in Section I, Chapter III of Circular No. 361-SCPM dated March 31, 1981 of the State Committee for Science and Technology and be planned according to the current system for planning the application of progressive technology.

The preparation of trial organization expenditure and revenue budgets (if any) is carried out according to the annual financial plan and current regulations regarding the use of various sources of capital and the issuance of capital for scientific research and progressive technology application work.

:

Based on determining the content, key economic and technical indicators, scope, scale, and conditions for applying technical innovations and patents, units must prepare comprehensive budgets for all costs and results obtained from applying technical innovations and patents, as well as sources of funds ensuring related costs according to the provisions in point 2.

4. ACCOUNTING AND SETTLEMENT:

4. Accounting and settlement:

Expenditures for implementing inventions and innovations shall be accounted for and settled separately according to each source of funds as prescribed under current regulations (construction investment capital, major repair capital, credit capital, and circulating capital).

a) Expenditures funded by circulating capital shall be recorded as production costs or circulation fees.

b) Expenditures that increase the quantity and value of fixed assets shall be recorded as an increase in fixed capital and gradually depreciated into production costs or circulation fees. The depreciation amount shall be used for implementing inventions and innovations (if applicable) or submitted to the state budget according to the prescribed regulations (depending on the source of funds forming the fixed assets).

c) Profit and loss accounting for implementing inventions and innovations shall still be conducted according to current regulations.

III. ON THE MATTER OF AWARDS FOR INVENTIONS AND INNOVATIONS

A. GENERAL ISSUES

1. Recipients of awards

:

a) Authors of innovations who have been granted innovation certificates and authors of inventions who have been granted invention certificates, as well as those who support the authors and those who participate in organizing the first implementation of innovations and inventions as stipulated in Chapter IV, Section c, Article 48, Points 1, 2, and 3 of the Charter shall be awarded when the innovation or invention is implemented.

b) Authors of inventions whose benefits can be quantified in monetary terms shall receive awards within the first two years of implementation, while authors of inventions whose benefits cannot be quantified in monetary terms shall only receive awards in the first year of implementation.

Awards for the above recipients shall be deducted from the profits generated from the implementation of innovations or inventions.

2. Responsibility for calculating benefits, determining award levels, and making payments.

a) The first implementing entity and the entity directly benefiting from the implementation of innovations or inventions shall be responsible for calculating benefits, determining award levels, and paying awards to the aforementioned recipients.

b) In cases where the implementation of innovations or inventions does not directly benefit the first implementing entity, the first implementing entity shall be responsible for calculating benefits, determining award levels, and immediately transferring the relevant files to the benefiting entity for timely payment of awards to the authors as stipulated in Article 44, Point 2 of the Charter.

c) In cases where the benefits obtained belong to society or cannot be identified as benefiting entities (for example, consumers...), the first implementing entity shall be responsible for calculating benefits, determining award levels, and making payments.

3. General principles for calculating benefits and determining award levels.

a) Direct benefits obtained from the implementation of innovations or inventions serve as the basis for determining award levels. Direct benefits obtained and awards shall be calculated in Vietnamese dong.

If direct benefits are obtained in foreign currency, they shall be converted into Vietnamese dong based on the internal settlement rate prescribed by the State.

If direct benefits cannot be quantified in monetary terms, other award levels shall be immediately calculated in Vietnamese dong based on the assessment of effectiveness and other values of the innovation or invention.

b) Benefits shall be calculated based on comparing economic and technical conditions (indicators, standards...) after the implementation of innovations or inventions with those before their implementation.

- For innovations or inventions without pre-existing economic and technical conditions at the first implementing entity, comparisons shall be made with similar general conditions at other entities or with average economic and technical conditions abroad for comparable products.

If an innovation or invention has been tested under production or operational conditions before formal implementation, the basis for comparison shall be the indicators and standards of the period before testing.

- For inventions, when calculating benefits in the second year of application, the basis for comparison remains the indicators and standards of the period before applying the invention.

c) In technical tasks involving multiple innovations or inventions where it is impossible to separately determine the benefits of each innovation or invention, the impact of each innovation or invention on the technical task shall be evaluated based on the percentage of total benefits, and this shall be used to determine the award level for each innovation or invention.

d) When calculating overall benefits to determine award levels, deductions must be made from the final accounts of the entity for additional costs or losses due to reduced economic-technical indicators achieved as a result of implementing innovations or inventions, such as saving one item but increasing costs for another, saving in one department but increasing costs in another.

e) When calculating benefits, in addition to accounting for costs in the cost price and circulation fees during the period of applying innovations or inventions to production, deductions must also be made for costs related to equipment, materials, initial procurement of raw materials, fuel, and materials for implementing innovations or inventions. If the initial costs are investments in fixed assets, they shall be deducted according to annual depreciation rates.

Costs incurred during the trial phase of innovations or inventions mentioned in Point 1, Chapter I above shall not be deducted from benefits.

B. AWARDING AUTHORS AT THE FIRST IMPLEMENTING ENTITY

1. Method for calculating benefits and determining award levels for innovations and inventions with quantifiable benefits.

a) Scope of application:

- Innovations and inventions that reduce labor costs, raw material costs, fuel costs, material costs, energy costs, machinery and equipment costs, capital costs... or costs as planned;

- Innovations and inventions that utilize waste materials, substandard materials... or improve the utilization efficiency of existing fixed assets;

- Innovations and inventions that enhance the usability or quality of products that are subsequently priced higher.

b) Method for calculating benefits:

- The benefits obtained (in this case, profit) may be expressed in one or more forms of benefits. In cases where an innovation or invention yields multiple forms of benefits, the total benefit is the sum of all forms of benefits.

d.1. Amount of taxable income in Vietnam:₁ = T_l1 + T_l2 + ... + T_ln

- General formula for calculating each form of benefit.

Profit from implementing an innovation or invention (T_lnThe value of benefits shall be calculated as follows: multiply the benefit value of a unit of work, labor, or product (t) by the total number of units of products (P) applied in a year within departments in the organization.

d.1. Amount of taxable income in Vietnam:_ln = t' x P

The benefit value of a unit of product (t) is the difference between the cost standard (main and auxiliary) or the price difference before and after applying the innovation invention, converted into monetary terms according to the state-guided price at that time.

The method for calculating the benefit value of new products produced domestically for the first time without a state-guided price is as follows:

If the utility and quality of the new domestic product are equivalent to imported products, then the benefit value is the difference between the wholesale price of imported goods and the wholesale industrial price of the new product.

The wholesale price of imported goods is determined based on the principle of adding the import cost (in domestic currency) plus the foreign trade surplus.

The wholesale industrial price is determined based on the average production cost per unit in the first year of applying the innovation or invention.

If the utility and quality of the new product are inferior to imported products, the benefit value must be reduced by an appropriate percentage. The total number of units of products (P) applied in departments within the organization is the total number of units of products calculated during the actual application period of the innovation or invention.

The actual application period of the innovation or invention to determine the total number of units of products is defined as follows:

For the actual application of the innovation or invention to calculate the total number of units of products, it is defined as follows:

For innovations or inventions applied continuously, the first application year is 12 months from the official application date. The second application year for an invention is the 12 months following the first application year.

For innovations or inventions applied seasonally, the application year is determined by the season.

When the time to produce a unit of product exceeds 12 months, the completion time of the unit product is considered the first application year.

For inventions, the completion time of the second unit product is considered the second application year.

For innovations or inventions applied in limited quantities (small batches) or applied once (single production or repair), if the application period is less than 12 months, only the actual application period is counted (for inventions, only one reward is given). If the application period is less than 24 months, the first application year is 12 months, and the actual application period beyond the first 12 months is counted as the second application year.

c) Method for determining the reward level:

The calculated profit amount will be compared with Appendices 1 and 2A (Article 41, Point 2 of the Regulations) to determine the reward level for the author, for example:

- Determining the reward for the author of an innovation:

The profit generated from applying the innovation in the first application year is 3946 dong, the author is rewarded according to Level 5 of Appendix 2, thus the reward amount for the author is:

10

3496 dong x + 81 dong = 430.60 dong

100

- Determining the reward for the author of an invention:

The profit generated from applying the invention in the first application year is 78253 dong. The author is rewarded according to Level 7 of Appendix 2A, thus the reward amount for the author in the first year is:

3

78253 dong x + 2100 dong = 4447.59 dong

100

The profit generated from applying the invention in the second application year is 103170 dong, the author is rewarded according to Level 8 of Appendix 2A. Thus, the reward amount for the author in the second year is:

2

103170 dong x + 31000 dong = 5163.40 dong

100

2. Method for determining benefits and reward levels for innovations and inventions whose benefits cannot be quantified in monetary terms.

a) Scope of application:

- Innovations and inventions directly related to health, improving working conditions, workplace safety, environmental protection, traffic safety...

- Innovations and inventions concerning national security, strengthening defense, protecting social property.

b) Method for determining benefits:

Non-monetary benefits are evaluated based on the following criteria:

- Remediation effectiveness or technical effectiveness:

Remediation effectiveness reflects the benefits obtained in forms such as health protection, improved working conditions, workplace safety, environmental protection, traffic safety... according to the degree of limitation or elimination of harm or dangers to human health and life due to the application of the innovation or invention.

Technical effectiveness reflects non-monetary benefits not covered by the above forms and is demonstrated by the technical level achieved when applying the innovation or invention, such as improving key technical indicators; creating new key technical indicators of a product or a technological process that creates a new product or technological process with more advanced key technical indicators compared to similar products or technological processes.

Remediation effectiveness or technical effectiveness is represented by factor H1 in Appendix 1 attached.

- Quantity and scope of application of the innovation or invention:

For benefits in the form of remediation effectiveness, the quantity and scope of application of the innovation or invention are the number of people affected by the innovation or invention within the first applying organization and the potential for expansion to other organizations within two years for innovations and five years for inventions (referred to as the near term).

For benefits in the form of technical effectiveness, the quantity and scope of application of the innovation or invention are the production scale in the first applying organization and the potential for expansion to other organizations within the near term.

The quantity and scope of application are represented by factor H2 in Appendix 2 attached.

- Complexity of the technical task.

The complexity of the technical task solved by the innovation or invention is classified from low to high, such as from designing, manufacturing individual parts, assemblies, tools, complex machines, or from developing complex technological processes, or from changing individual components of a formula to establishing a complex formula.

The level of complexity is represented by coefficient H3 in Appendix 3 attached hereto.

- Scientific and technical value:

For scientific and technical initiatives, the scientific and technical value shall not be considered.

For scientific and technical inventions, the scientific and technical value is reflected at the level of novelty and evaluated by the ratio between known basic features and the total number of basic features in the invention formula.

The scientific and technical value is represented by coefficient H4 in Appendix 4 attached hereto.

c) Method for determining bonuses:

Determining bonuses is carried out according to the method of evaluating four aspects of benefits expressed by four coefficients and calculated according to the following formula:

Bonus for an initiative (Tsk):

Tsk = 30.H₁.H₂.H₃ (VND)

Bonus for an invention (Tsc):

Tsc = 60.H₁.H₂.H₃.H₄ (VND).

3. Increase bonus levels for initiatives and inventions where the profit does not fully reflect the value of the initiative or invention.

a) Initiatives and inventions eligible for increased bonus levels as provided for in Article 43 of the Charter include those that address key tasks of the agency, unit, industry, or the entire country such as: - Initiatives and inventions related to saving or substituting rare raw materials and materials requiring import;

- Initiatives and inventions creating new valuable products with the potential to expand domestic production and replace imported goods or increase exports.

- Initiatives and inventions with significant economic and technical significance but limited scope of application such as restoring valuable machinery and equipment, producing experimental machines, etc.

b) Increase bonus levels:

Within the limit of bonuses allocated, depending on the economic and technical significance of the initiative or invention, heads at all levels may increase the determined bonus level up to 1.5, 2, 2.5, or 3 times, but the highest bonus shall not exceed the maximum bonus level prescribed in Article 40 of the Charter.

4. Special provisions regarding payment of rewards to authors of inventions.

a) For registered invention solutions without a decision granting authorship of the invention but already applied within the agency or unit, the author has the right to receive rewards according to the regulations on rewarding initiatives. When there is a decision granting authorship of the invention, the author will receive rewards according to the regulations on rewarding inventions. The period for calculating benefits is the time from when the solution was officially applied before being granted authorship. The reward for the author of the invention must deduct the amount paid according to the regulations on rewarding initiatives.

b) Authors of public service inventions are entitled to receive initial encouragement bonuses as stipulated in Point 1, Article 20 of the Charter after being granted authorship of the invention. This bonus is paid by the agency or unit holding the public service invention.

c) When selling the right to use an invention that has been granted authorship to foreign entities, the author of the invention is entitled to receive a maximum bonus equal to 3% of the proceeds from selling the right to use the invention.

- In the case of a public service invention, the agency or unit holding the invention as the owner, signing the contract to sell and collect money, is responsible for paying the reward to the author.

- In the case of a non-public service invention, an authorized agency (authorized by the State Science and Technology Committee) signing the contract to sell and collect money is responsible for paying the reward to the author.

d) Payment of rewards to the author of the invention will be postponed if the invention falls into a situation requiring examination of its validity.

e) Supplementary authors of the invention are rewarded according to the regulations on rewarding inventions like other authors of inventions.

- During the first two years of applying the basic invention, if a supplementary invention is also applied, the benefits derived from the basic invention are calculated as if the supplementary invention had not been applied. The benefits derived from the supplementary invention are calculated compared to when the basic invention has been applied.

- In cases where both the basic invention and the supplementary invention are applied simultaneously and it is impossible to calculate the separate benefits of each invention, the calculation of benefits and determination of the reward level will be conducted according to the provisions in Point c, Section 3, Part III of this Circular.

5. Procedures for payment of rewards:

a) The procedures and deadlines for payment of rewards are carried out according to the provisions in Chapter III, Section II, Points 1, 2, and 3 of Circular No. 361-SCPM dated March 31, 1981 issued by the State Science and Technology Committee.

The head of the grassroots unit upon receiving the file from the competent authority deciding the reward level and the file on rewarding initiatives and inventions must immediately transfer these files to the unit's chief accountant. The unit's chief accountant is responsible for rechecking the calculation of the benefits generated by applying the initiative or invention and calculating the reward for the author according to Article 41 of the Charter.

b) Handling complaints about rewards is carried out according to the provisions in Article 52 of the Charter.

c) Cases of incorrect rewards are resolved as follows:

Due to miscalculation or misassessment of benefits leading to incorrect decisions on reward levels, if:

Discovered before the deadline for payment of rewards (two months after the year of application), then the decision on the reward level should be revised.

Discovered after the deadline for payment of rewards, if the reward was higher than appropriate, the author does not have to return it, if the reward was lower than appropriate, the author is entitled to additional reward according to the appropriate level.

If there is fraud or deception, the person causing the issue must return the corresponding amount to the state. In serious cases, they will be prosecuted under the law.

C. REWARDING ENCOURAGEMENT FOR THOSE WHO SUPPORT THE AUTHOR OR ORGANIZE THE FIRST APPLICATION OF THE INITIATIVE OR INVENTION AT THE FIRST APPLYING UNIT

1. Those who support the author or organize the first application of the initiative or invention in Points 1-3, Section II, Chapter III of Circular No. 361-SCPM dated March 31, 1981 issued by the State Science and Technology Committee are entitled to a one-time reward at the level specified in Article 48 of the Charter.

2. The review and decision on reward levels are conducted simultaneously with the review and decision on reward levels for the author of the initiative or invention; the level that reviews and decides the reward level for the author of the initiative or invention will also decide the reward level for these individuals. The deadline for payment of rewards is two months after the end of the first year of application.

3. The reward for those who support the author is a shared reward. These individuals agree among themselves on how to divide the reward amount.

3. The prize money for those assisting the author is collective prize money. These individuals shall negotiate the division of such prize money among themselves.

The general award for those who first implement an innovation or invention is a shared award. These individuals shall negotiate the division of the award amount among themselves.

If the task of supporting the author or the task of first implementing an innovation or invention includes independent works, then the innovation and invention council shall divide the award according to the proportion of work, taking into account the opinion of the innovation or invention author.

The total award for those supporting the author shall not exceed 25% of the author's award. The total award for those organizing and first implementing an innovation or invention at the initial agency or unit shall not exceed 50% of the author's award.

D. ADDITIONAL AWARDS FOR AUTHORS AT EXPANDING APPLICATION UNITS

Within two years for innovations and five years for inventions from the date of their first application at the initial agency or unit, if the innovation is further applied at other agencies or units within the industry or locality, or if the invention is further applied at other agencies or enterprises nationwide, the innovation or invention author shall receive additional awards. The responsibilities, procedures, and authority to determine the level of additional awards shall be carried out in accordance with the provisions of Article 45 of the Charter and Section III, Subsection II, Point 4 of Circular No. 361-SCPM dated March 31, 1981 issued by the State Science and Technology Committee.

E. EXPENSES FOR AWARDS, FUNDS AND ACCOUNTING

1. Expenses

:

- Awards for innovation and invention authors,

- Additional awards for innovation and invention authors.

- Initial encouragement awards for public service invention authors.

- Encouragement awards for those supporting the author.

- Encouragement awards for those organizing the first implementation of innovations and inventions.

2. Funds and Accounting

:

a) For production and business units:

- Awards for innovations up to Level 3 and inventions up to Level 2 shall be recorded in the enterprise management fee account and accounted for in the product cost or circulation fee of the month of awarding.

- Awards for innovations from Level 4 and inventions from Level 3 shall be recorded in the pending expense account and gradually allocated to the product cost or circulation fee through the enterprise management fee account. The allocation period for these awards into product costs and circulation fees begins from the fourth month of application when the decision on the first award payment to the author is made.

b) For basic construction units, all award expenses for innovations and inventions, regardless of the level of the award, shall be recorded in administrative management expenses and accounted for in other construction capital (for Party A) or accounted for in product costs (for Party B).

c) For administrative agencies and public service units.

Award expenses shall be deducted from administrative and public service funds or scientific research and technology development funds.

IV. IMPLEMENTATION OF MEASURES TO DEVELOP INNOVATION AND INVENTION ACTIVITIES

Expenditures for organizing trials and applying technical innovations and patents (hereinafter referred to as trials) include:

:

Agencies, units, and management levels of innovation and invention activities are permitted to allocate funds for the following purposes:

- Organizing summary conferences on innovation and invention work; specialized seminars on technical creativity; organizing competitions to select innovations and inventions aimed at solving key tasks...

- Organizing recognition of innovations or examination of inventions.

- Organizing information and data work and exhibitions of innovations and inventions.

- Organizing tours and surveys of innovation and invention activities.

- Allocating funds for training courses to enhance the professional skills of dedicated innovation and invention staff and related personnel.

- Costs for foreign patent protection procedures.

2. Sources of funds: Depending on the type of unit (production and business, basic construction, administrative and public service), funds for developing innovation and invention activities shall be allocated from existing unit funds: production promotion fund, scientific research and advanced technology application fund, administrative and public service funds, and scientific research and technology development funds.

V. IMPLEMENTATION PROVISIONS

1. Industries and localities have the responsibility to uniformly direct the implementation of this Circular in agencies and units under their management. During the implementation process, if there are any issues that remain unresolved, they should promptly reflect them to the Ministry of Finance and the State Science and Technology Committee for resolution.

2. Financial agencies at all levels and sectors have the responsibility to study and properly apply this Circular during the process of resolving financial issues related to innovation and invention activities.

3. This Circular takes effect from the date of signature, all previous regulations contrary to this Circular are abolished.

 

 

 

ANNEX 1

VALUE OF FACTOR H1: EFFECTIVENESS IN REMEDIATION OR TECHNICAL EFFECTIVENESS

Level	a. Remediation effectiveness ranked from 1 to 6 points a b. Technical effectiveness ranked from 1 to 6 points b	Value of H1
1	a. Reducing workplace or living environment pollution, or - Reducing the physical strain of work or creating comfort for working conditions, or - Limiting minor illnesses or accidents that may occur b. Normal technical improvement without enhancing the technical standards of a product or technological process	1
2	a. Eliminating completely the cause of workplace or living environment pollution, or systematically limiting minor illnesses or occupational accidents that may occur b. Enhancing the technical standards of a product or technological process	1,5
3	a. Systematically eliminating the cause of minor illnesses or accidents that may occur or limiting major illnesses or accidents b. Enhancing the main technical standards of a product or technological process	2
4	a. Completely eliminating the cause of major illnesses or accidents that may occur b. Creating new main technical standards for a product or technological process	3,0
5	a. Limiting the cause of fatal accidents or illnesses leading to death b. Creating new products or technological processes with higher main technical standards than similar products or processes	4,0
6	a. Completely eliminating the cause of fatal accidents or illnesses leading to death b. Creating new products or new technological processes with primary technical specifications entirely new to the national economy.	5,0

Note: The severity level of illness or accidents is based on the current state regulations for classifying illnesses and accidents.

ANNEX 2

VALUE OF FACTOR H2: QUANTITY AND SCOPE OF APPLICATION

Level	a. Number of people affected by the innovation or invention, ranked from 1 to 8 points a b. Production scale ranked from 1 to 8 points b	Value of H2
1	a. From 1 to 3 persons b. Single-piece production or production in a single batch with a small quantity	1
2	a. From 4 to 10 persons b. Small-scale production (repeated production without adjusting volume)	1,5
3	a. From 11 to 20 persons b. Batch production (regular production according to cycles)	2
4	a. From 21 to 50 persons b. Batch production and within a short period, capable of being expanded to other organizations or units	2,5
5	a. From 51 to 100 persons b. Large-scale batch production (increasing the volume of a type of product in a year)	3,0
6	a. From 101 to 500 persons b. Large-scale batch production and within a short period, capable of being expanded to other organizations or units	4,0
7	a. From 501 to 1000 persons b. Mass production (continuous production over a period for large quantities of similar products)	5,0
8	a. Over 1000 persons b. Mass production and within a short period, capable of being expanded to other organizations or units.	6,0

ANNEX 3

VALUE OF FACTOR H3: COMPLEXITY LEVEL OF TECHNICAL TASKS

Level	Complexity level of technical tasks	Value of H3
1	- Designing or manufacturing a simple component of machinery or equipment, or - Changing a parameter or a process step in a simple technological process or method, or - Changing a component of a mixing formula	1,0
2	- Designing or manufacturing a complex component or a group of components of machinery or equipment, or - Changing some secondary parameters or steps in a technological process or method, or - Changing some secondary components of a mixing formula	2,0
3	- Designing or manufacturing a main group of components or several auxiliary groups of components of machinery or equipment, or - Changing a main parameter or step in a technological process or method, or - Changing a main component of a mixing formula	3,0
4	- Designing or manufacturing machinery, equipment, or tools, or - Establishing a technological process or method, or - Establishing a mixing formula	4,0
5	- Designing or manufacturing complex machinery, equipment, or tools, or - Establishing combined technological processes or composite methods, or - Establishing a complex mixing formula	5,0
6	- Designing or manufacturing machinery, equipment, or highly complex systems, or - Establishing complex combined technological processes or composite methods, or - Establishing a mixing formula with particularly complex characteristics	6,0

ANNEX 4

VALUE OF FACTOR H4: SCIENTIFIC AND TECHNICAL VALUE

Level	Degree of novelty of the invention	Value of H4
1	The invention uses known structures, methods, or substances in a new function and provides a new benefit	1,0
2	The invention has few basic features that are new	1,5
3	The invention has half of its basic features that are new	2,0
4	The invention has most of its basic features that are new	2,5
5	The invention has all of its basic features that are new (the invention has no prior art solution)	3,0

Note:

Levels 2, 3, and 4 are based on the ratio between the number of known basic features and the total number of basic features in the invention formula (the total number of basic features of the invention includes both the number of basic features identical to known solutions and the number of new basic features of the invention), and this ratio is greater than 1/2 indicating that the invention has fewer new basic features, equal to 1/2 indicating that it has half new basic features, less than 1/2 indicating that it has most new basic features.