The natural science research institutions on the Chinese mainland consist of institutions subordinated to the Chinese Academy of Sciences, those subordinated to other central departments, and those under the local level. The total number of such organizations amounted to over 5000 in the early 1990s, the largest reservoir of S&T manpower in the mainland. Since launching the reform of the S&T System in 1985, China has spared no effort to encourage these institutions as well as their researchers to participate in national economic construction. This paper shows that in face of pressure for change, the institutions have adopted different strategies in accordance to the resources. Likewise, in face of market competition, the more resources available, the more additional resources gained; the converse also applies however.