City prepares to 'pool' tech firms' R&D resources

Shanghai is to set up a “nurturing pool” — a fund for local science and technology firms spending time and resources on R&D — offering up to 2 million yuan (US$290,000) in fiscal support plus preferential policies.

The city plan to boost the development of technology firms is part of its ambition to become a “scientific innovation center with global influence.”

The city already has more than 9,000 high-tech companies with the aim of driving that number up to 15,000 by 2020, and to over 20,000 by 2022.

“A number of leading companies are expected to join the pool, which will help them acquire core technologies, intellectual property rights and gain international competitiveness,” Zhang Quan, head of the city science and technology commission, told a press conference yesterday.

The pool will be accessible to companies with independent intellectual property rights that spend no less than 3 percent of their budget on research and development with researchers accounting for at least 5 percent of their personnel, among other criteria.

Companies in the key industries listed by central and city governments will enjoy easier access to the pool. These areas include biological medicine, high-end manufacturing and new energy vehicles.

On entering the pool, each company will receive a cash subsidy ranging from 200,000 to 2 million yuan, equivalent to 10 percent of its R&D investment in the previous year. The government will also cover 75 percent of their research costs and provide tax breaks.

“Some companies in the pool are quite likely to be listed in the new board for science and technology innovation to be launched on the Shanghai Stock Exchange,” Zhang said.

President Xi Jinping announced the new board at the opening of the China International Import Expo this month.

The commission is working to help high-tech companies get listed on the board, which is expected to become a powerful force for the development of Shanghai and China, Zhang said.

Shanghai supports science and technology companies, including startups, but the number of such firms lags behind Guangdong Province and Beijing as well as neighboring Jiangsu and Zhejiang provinces.

However, the incomes and profits of Shanghai’s tech firms rank first among all provinces and municipalities, Zhang said.