Article 1 Purpose and legal basis
   Based on the Notice of the People's Government of Shanghai Municipality on Implementing Supporting Policies of the Mid-and-Long Term Scientific and Technological Development Plan of Shanghai Municipal Government (2006--2020) (Document Number: Promulgated by Shanghai Municipality (2006) No.12), and the Suggestions of Baoshan District on Enhancing Management of Special Funds for Industrial Restructuring and Transformation, the regulations are laid down to further carry out the mid-and-long term scientific and technological development plan at  state and city levels, and actively build an innovation-driven city, a new market-oriented scientific and technological innovation system with enterprises at its core, as well as to assist enterprises in scientific and technological innovations,  which is supported by scientific research institutions and industry-university-research collaboration.

Article 2  Source of the special funds
   The district has allocated 31 million yuan to fund scientific and technological innovation. The district’s budget will increase progressively 2 percent higher than revenue every year to ensure that the financial input in science and technology can grow proportionally with fiscal expenditure. The special funds consist of scientific and technological development fund, enterprise-university-research collaboration fund, Little Giant Technology Program fund and innovation reward fund. The district and sub-districts will jointly fund enterprises or programs that can receive a fund of more than 20 million yuan according to the rules in the Suggestions of Baoshan District on Enhancing Management of Special Funds for Industrial Restructuring and Transformation. The budget of the current year and next year shall be adjusted according to the budget performance.

Article 3  Range of Application
   Special funds are used to encourage enterprises, public institutions and individuals to make innovations in research and development of scientific programs, the application of scientific breakthroughs, enterprise-university-research collaboration, intellectual property right protection, the development of science industry, scientific service platform and scientific and technological innovation system. Priority is given to supporting strategic emerging industries related to new materials, new energy, smart devices manufacturing, electronic devices manufacturing, software and information services, biomedicine, optical fiber and satellite navigation. And the enterprises and programs must register with Baoshan Administration for Industry and Commerce and file tax returns to Baoshan District Office, SAT and Baoshan District Bureau of Local Taxation.
  

 Funding mechanism and requirements

（I） Scientific and technological development fund
   This fund aims to support innovative, advanced and practical scientific and technological programs with clearly-established ownership of intellectual property right that are in line with industrial policies at state, city and district levels.

 

 1. Industrial scientific and technological program
(1) Scientific and technological innovation programs at district level
   The fund is to support the middle-small-and-micro-sized science and technology enterprises which conduct market-oriented research and development. Programs that can greatly propel scientific and technological innovations and have remarkable economic returns can receive a fund of no more than 20 percent of the enterprises’ investment, which is no more than 300 thousand yuan; Key programs can receive a fund of no more than 30 percent of the enterprises’ investment, which is no more than 500 thousand yuan.

 (2) Scientific and technological program at state and city levels

   High-tech achievements transformation programs at state level that are accredited shall receive 50 thousand yuan in a lump sum.
   High-tech enterprises that are accredited for the first time shall receive 100 thousand yuan in a lump. Those that pass the review shall receive 10 thousand yuan in a lump sum.
National innovation-oriented (pilot) enterprises that are accredited for the first time shall receive 200 thousand yuan in a lump sum. Innovation-oriented enterprises at city level shall receive 100 thousand yuan in a lump sum.
   The incubated enterprises that work on independent innovation shall receive a fund of no more than 20 percent of their investment in the innovation achievements transformation, which is no more than 200 thousand yuan.
   The technological innovation-oriented enterprise incubators that are rated as “excellent” or “good” shall receive a fund awarded by the district that equals the fund awarded by the Science and Technology Commission of Shanghai Municipality. Those that passed the examination shall receive 100 thousand yuan to improve their services.
   Programs that are already granted national funds from major science and technology programs such as the National High-tech R&D Program 863, National Key Basic R&D Program 973， National Key Science and Technology Research Program, and The Natural Science Foundation of China shall receive a fund of 10 percent of the national fund. The proportion shall be adjusted based on preferential policies targeting some programs. One program can receive a fund of no more than 2 million yuan. A unit can only carry out at most two supporting programs.
   Other key new product research and development programs at state and city levels and Torch High-tech Programs shall receive a fund of 10 percent of the state or city funding. A program at state level shall receive a fund of no more than 1 million. And a program at city level shall receive a fund of no more than half a million. The proportion shall be adjusted based on preferential policies targeting some programs.
   Enterprise-led industrial cluster innovations shall be funded. The main enterprises that carry out programs accredited as “Innovation Hot Spot” by authorities at city or state level shall receive a fund awarded by the district that equals the fund awarded by city or state, which is no more than 3 million yuan.

 2. Agricultural science and technology project
   Programs that boost provenance agriculture, agricultural equipment and facilities, intensive processing of agricultural products and safe agricultural production, agricultural waste recycling and application of practical agricultural technology shall receive a fund of no more than 100 thousand yuan, among which the key programs shall receive 200 thousand yuan. Other programs at city and district levels that need city government’s funding shall be funded according to certain regulations.

3. Medical and health programs
   Programs that fuel research in diagnostic technology, disease treatment, clinical disease, disease control and prevention, especially those listed as key programs at city level and those with Baoshan characteristics shall be funded. Average programs shall receive a fund of no more than 100 thousand yuan, and key programs shall receive a fund of no more than 200 thousand yuan.

4. Education Programs
   Programs that help improve teaching method, school management, students’ innovative mindset and practice ability and education research subject shall be funded. Average programs shall be funded with no more than 100 thousand yuan. And key programs shall be funded with no more than 200 thousand yuan.

5. Patent application and authorization subsidy
   The subsidy is to encourage patent applications from individuals, enterprises and public institutions. Those who have paid agency fees for applying for Chinese invention patent, practical new patent and design patent can respectively receive 1200-yuan, 800-yuan and 400-yuan subsidy. Individuals and small-and-middle-sized enterprises that have obtained Chinese invention patents can receive the subsidy that equals the agency fee. The subsidy shall be distributed as convenient and quickly as possible.

6. Patent-oriented pilot project
   Enterprises and public institutions that carry out patent-oriented pilot projects and develop patent strategies shall be funded. Those enterprises and public institutions at district level shall receive a fund of 50 thousand-yuan, and those at city level shall receive a fund awarded by the district that equals the fund awarded by the Shanghai Municipal Finance Bureau.

7. Patent Industrialization Project
   International or national leading patented products that are in line with the city’s or the district’s industrial orientation and have an annual output of no less than 5 million yuan shall receive a fund of no more than 150 thousand yuan.

8. Baoshan District Invention Patent Award
   The Baoshan District Invention Patent Awards is held every two years to fully implement the Patent Law of People’s Republic of China and intellectual property right strategies, as well as to promote industrial structure upgrading and economic growth transformation through intellectual property right. The awards shall receive a fund of 200 thousand yuan.

9. Other science and technology programs
   Major science and technology programs that are approved by Baoshan District government shall be funded according to certain policies.

(II) Special fund for enterprise-university-research collaboration
   The special fund for enterprise-university-research collaboration aims at guiding and encouraging enterprise-university-research collaboration in technology research and development, and actively promoting technological innovations in Baoshan by using rich technological resources of universities and research institutions. The fund receiver must meet the following standard:

 

10. Programs that center on research and development, transformation and industrialization of high-tech products conducted under enterprise-university-research collaboration shall be funded. These programs shall receive a fund of no more than 20 percent of the enterprises’ own investment, which is no more than 300 thousand yuan. Key programs shall receive a fund of no more than 30 percent of the enterprises’ own investment, which is no more than 500 thousand yuan. Priority is given to programs conducted by academician and expert workstation at enterprises. Programs that are jointly applied by enterprise, university and research institution and are approved at state or city level shall be funded according to certain policies at state and city levels.

 

11. Enterprise-led innovation platforms such as engineering and technology research center, key laboratory, academician and expert workstation in the district shall be funded. Priority is given to engineering and technology research center established through enterprise-university-research collaboration. These platforms shall receive a fund of no more than 25 percent of the enterprise’ own investment. Engineering and technology research center, key laboratory, academician and expert workstation at district level shall receive a fund of no more than 500 thousand yuan, and the maximum amount awarded to engineering and technology research centers, key laboratories, academician and expert workstations at state and city levels can be found in other specific regulations.

12. Public technology research and development service platforms established by institutions of higher learning and research institutions shall receive a fund of 30 percent of their own investment, which is no more than 1 million yuan.

13. To further improve the innovation efficiency of enterprises and promote resource sharing, enterprises that make technological innovations by using public resources like equipment and literatures available on the public service platforms shall receive a subsidy from the district that equals the subsidy from the Science and Technology Commission of Shanghai Municipality and Shanghai Municipal Finance Bureau. One enterprise can receive no more than 100 thousand-yuan subsidy in a year. The public service provider shall be subsidized according to certain regulations laid down by the city.

14. Enterprises that are listed as enterprise-university-research collaboration demonstration enterprises for their remarkable achievements in research and development of new products, new technology application and talents cultivation shall receive a fund of 50 thousand yuan.

15. Service departments and people from universities, research institutions and technology transformation demonstration institutions that have engaged in the enterprise-university-research collaboration shall receive a reward of no more than 30 thousand yuan per program. One unit can receive a reward of no more than 200 thousand yuan in total every year.

16. Policies on funding programs that are not included in the above are listed in the Suggestions of Baoshan District on Enhancing Management of Special Funds for Industrial Restructuring and Transformation

 

(III) Special fund for the Little Giant Technology Program
Special fund for the Little Giant Technology Program is used to encourage and help small-and-middle-sized enterprises to improve independent innovation ability and seek professional, intensive, large-scale and sustainable development. The fund receiver must meet the following standards:

 

17. Enterprises with the Little Giant Technology Program at city level shall receive a fund awarded by the district, which is as much as the fund awarded by the city and no more than 50 percent of the enterprises’ own investment.

 

18.Enterprises with the Little Giant Technology Program at district level shall receive a fund of 100-200 thousand yuan, which is no more than 50 percent of the enterprises’ own investment.

 

19. Special fund for the Little Giant Technology Program
The special fund for the Little Giant Technology Program shall be distributed according to the Baoshan District Little Giant Technology Program Contract signed by Science and Technology Commission of Baoshan District and units that carry out the program.

 

20. The Little Giant Technology Program is supported by the city and district. Units carrying out the program that have made remarkable progress and can help encourage other units shall be funded steadily.

 

(IV)Rewards for scientific and technological progress
To encourage units’ and individuals’ technological research and innovation, as well as to promote technology-driven economic growth, the district awards science and technology programs at state and city levels.

 

21. The rewards system consists of first and second prize.
The first prize goes to the following citizens and organizations:
(1) Those who have won the State Preeminent Science and Technology Award
(2) Those who have won the Shanghai Outstanding Scientist Award
(3) Those who have won the first prize of Shanghai Science and Technology Award
And the second prize goes to citizens and organizations that have won the second and third prize of the Shanghai Science and Technology Award.

 

22. Citizens and organizations that have won the first or the second prize shall receive rewards of no more than 500 thousand yuan and 100 thousand yuan respectively.

 

Article 5  Organization
   The Science and Technology Commission of Baoshan District is responsible for managing the special funds, including releasing the program information, accepting and examining programs applied, reporting the programs to the city or state, implementing, supervising and evaluating the programs.

 

Article 6 Application, examination and approval of the special funds
   The policies on application, examination and approval of the special funds are listed in the Suggestions of Baoshan District on Enhancing Management of Special Funds for Industrial Restructuring and Transformation

 

Article 7 Management and Supervision
1. Enterprises and programs that are not awarded the special funds are managed and supervised according to rules in the Suggestions of Baoshan District on Enhancing Management of Special Funds for Industrial Restructuring and Transformation.
2. Units that carry out programs that have been awarded special funds must sign a science and technology program assignment deal and a contract with the Science and Technology Commission of Baoshan District. If a program is jointly carried out by several units, the main unit shall sign the contract or agreement with the Science and Technology Commission of Baoshan District and supporting units. The contract or agreement the main unit signs with the supporting units shall be sent to the Science and Technology Commission of Baoshan District to be put on records within 15 days.
3. Special funds must be used according to regulations. The Science and Technology Commission of Baoshan District shall work with authorities concerned to cancel or terminate the contract and recover the special funds if breach of contract happens, as well as cancel or forbid the default party’s right to apply for special funds within certain period.
4. Units that carry out the programs must submit a written application if they need to adjust or cancel the quota, progress or fund of the programs. The application shall be implemented after it’s been examined and approved by the Science and Technology Commission of Baoshan District and authorities concerned.
5. Upon expiration of contract, units that carry out the programs shall submit acceptance inspection-related documents to the Science and Technology Commission of Baoshan District and authorities concerned and shall be inspected according to certain regulations.
6. Enterprises that are awarded the special funds must list the special funds as the ‘deferred income” and exclude the special funds from taxable income according to the Regulations of Ministry of Finance and State Administration of Taxation on Special Funds-Related Corporate Income Tax. The special funds must be filed with competent tax departments once they are awarded to enterprises.

Article 8  Supplementary provisions
1. The regulations shall enter into force as of the date of promulgation and shall be implemented for three years.
2. The Science and Technology Commission of Baoshan District, Finance Bureau of Baoshan District and Development and Reform Commission of Baoshan District reserve the right of final explanation for the regulations.