SMSTC D [2021] No. 2

 

Attention: all relevant departments:

In order to enhance the development of small and medium technology enterprises in this Municipality, strengthen the targeted administration, and improve the efficiency of innovation,the Procedures for the Planning and Administration of Technology Innovation Funds for Small and Medium Technology Enterprises in Shanghai Municipality are promulgated by the Science and Technology Commission of Shanghai Municipality. We hereby issue them to youand request you to implement them conscientiously.

It is hereby circulated. 

 

Procedures for the Planning and Administration of Technology Innovation Funds for Small and Medium Technology Enterprises in Shanghai Municipality

 

Chapter 1 General Provisions

 

Article 1 With a view to strengthening the planning and administration of technology innovation funds (hereinafter referred to as the innovation funds) for small and medium technology enterprises in Shanghai Municipality, improving the efficiency of scientific and technological innovation, encouraging business startups and innovation, and accelerating the building of Shanghai into a globally influential scientific and technological innovation center, these Procedures are hereby formulated according to the provisions of the Regulations of Shanghai Municipality on the Advancement of Science and Technology, the Regulations of Shanghai Municipality on Advancing the Construction of a Scientific and Technological Innovation Center, and the Regulations of Shanghai Municipality on Promoting the Development of Small and Medium Enterprises.

Article 2 The innovation funds shall be geared to promoting the technological innovation activities of the small and medium technology enterprises in this Municipality. The small and medium technology enterprises shall meet the relevant requirements in the Procedures for the Evaluation of Small and Medium Scientific and Technological Enterprises (MST G A [2017] No. 115)

The Science and Technology Commission of Shanghai Municipality (STCSM) shall be the competent department for innovation funds administration, responsible for arranging annual plans, project approval, supervision and administration; all district science and technology departments shall be responsible for studying and formulating accompanying policies, project application recommendations, supervision and inspection, etc. in their own jurisdictions.

Article 3 The use and administration of innovation funds shall comply with the relevant national and Shanghai municipal laws, rules and financial rules, and follow the principles of overall planning, municipal-district collaboration,selective recommendation, scientific administration, transparency, and earmarked use.

  

Chapter II  Scope and Method of Support

  

Article 4 Enterprises applying for innovation fund support shall meet the followingconditions:

1. They are registered in this Municipality with independent corporate legal personality, have sound financial and management systems, and are non-listed.

2. They are mainly engaged in the research, development, production or service of high-tech products, have innovation capabilities and high-growth potentials, and are generally not involved in intellectual property disputes.

3. Their revenue of the previous year shall not exceed 30 million yuan, the total amount of their completed research and development investment shall not be less than 500,000 yuan, and the research and development investment shall make up no less than 5% of their revenue; the total number of their employees shall not exceed 300, and the staff directly engaging in research and development shall not be less than 10% of the total number of their employees.

4. Other relevant conditions required by the CPC Municipal Committee or the Municipal People’s Government shall be specified in the current year’s notice of project application.

Article 5 The innovation funds shall give priority to projects that meet the following conditions:

1. Projects with strong independent innovation capabilities, high technology, good market prospects, and potential to be fostered into new economic growth sources in the high-tech fields that the State gives priority support.

2. Projects that have commercializedtheir scientific and technological achievements with independent intellectual property rights and have made breakthroughs in key generic technologies, cutting-edge and frontier technologies, modern engineering technologies and disruptive technologies.

3. Collaborative innovation projects among enterprises, universities and research institutes with enterprises playing the leading role; innovation and startups projects in high-tech parks, university science parks, incubation and industrialization bases; innovation projects invested in by venture capital; and excellent projects selected from relevant startup and innovation competitions.

Article 6 The innovation funds shall not support projects that have any of the following circumstances:

1. Simple technology-introduction projects without independent innovation, low-level repetitive projects, simple construction projects, general processing industry projects, etc.

2. In the current year and the previous year when their application was made, the enterprises have had major safety or quality accidents, serious violation of environmental protection regulations, and serious academic discredit acts, or have been put in the abnormal operation list or the serious discredit enterprise list.

3. One enterprise has received innovation fund support for three times or more.

Article 7 One enterprise may apply for only one innovation fund project in one year.

Article 8 The innovation fund support is granted in the way of subsidy after the research goals have been achieved. Such support shall, based on the evaluation results, be granted according to the following standards:

1. The innovation fund support has two categories: Category A grants not more than 200,000 yuan for each project, while Category B grants not more than 100,000 yuan for each project. In addition to these innovation fund supports, if the projects recommended by the STCSM for national startup and innovation projects or competitions have successfully obtained national support, such support shall be granted according to relevant provisions of the State.

2. All district people’s governments shall provide accompanying supportive funds for the projects in their own jurisdictions that have obtained municipal innovation fund support, and the amount of the support for each project shall not be less than the Category B amount.

 

Chapter III  Application and Acceptance

 

Article 9 The STCSM publishes the application notice based on the scientific and technological development planning and the industrial development priorities of this Municipality, and specifies the requirements, procedures and deadlines of the application.

Article 10 The enterprise shall fill in the application form with objective and true information according to the application requirements of the current year’s innovation fund.

Article 11All district science and technology departments shall organize project application in their own jurisdiction, review the projects and enterprises’ qualifications before putting forward their recommendations to the STCSM.

  

Chapter IV  Review and Approval

  

Article 12 Based on the actual circumstances, the STCSM shall organize experts in relevant fields to review the overall status of the applying enterprises, mainly including their innovation investment, business management, team capabilities, technology (product) innovation, market size, and feasibility of their development objectives.

Article 13 The STCSM shall publicize the proposed projects on its website and through other channels for five working days. For the projects that have no disputes after being publicized, the notice of approval shall be issued for the enterprise to complete the procedure of project approval.

 

Chapter V  Supervision and Administration

 

Article 14 The enterprise undertaking the project shall, based on relevant provisions, arrange and use the innovation fund in a scientific, reasonable and effective manner to improve its innovation capabilities and shall subject itself to the inspection, supervision and administration of the departments of science and technology, finance, and audit.

Article 15 All district science and technology departments shall create credit files of the enterprises undertaking the projects, follow up the development of the projects, and prepare an assessment report on the regional innovation fund projects. The STCSM shall adopt third-party evaluation, prioritized spot checks and other ways to evaluate, supervise and inspect the effect of the policy implementation, the project development, and the administration of the district science and technology departments.

Article 16 If the enterprise undertaking the project commits frauds, falsifies achievements or has any other acts that violate laws, rules and regulations, the STCSM shall take such Procedures as stopping the grant, recovering the fund, and recording in the credit file. If the violation constitutes a crime, it shall be transferred to the judicial department for criminal liabilities investigation according to law.

 

Chapter VI  Supplementary Provisions

 

Article 17 The matters not covered by these Procedures shall be subject to the provisions of Shanghai Municipality on science and technology planning projects, funds and credit management. Interpretation of these Procedures rests with the STCSM.

Article 18 These Procedures shall be effective as of April 1, 2021, and valid until March 31, 2026.