To implement the decisions and arrangements of the Provincial Party Committee and Provincial Government, accelerate the construction of “UST Silicon Valley,” leverage the leading role of innovation in the science and technology system, gather global innovative forces, create a model project serving as a source of scientific and technological innovation and a hub for emerging industries, and generate a radiating and driving force for scientific and technological innovation across the province, this policy is hereby formulated and implemented.
I. Connecting Global Innovation Resources
1. Support the establishment of the USTC Silicon Valley Service Platform Company and the Global Alumni Affairs Department. By leveraging the global alumni resources of research institutions such as the University of Science and Technology of China (USTC), support the establishment of the USTC Silicon Valley Service Platform Company and the Global Alumni Affairs Department to serve as platforms and windows for connecting global innovation resources. Establish regular mechanisms for coordination, communication, and service provision, and jointly carry out work related to innovation and entrepreneurship, as well as the recruitment of talent and investment. Special funding support will be provided annually based on the progress of these initiatives.
2. Recruit “UST Silicon Valley” Global Partners.Support the development of comprehensive innovation and entrepreneurship complexes by establishing a “team + fund + platform” operational model. Globally recruit operational teams for co-working spaces, incubators, new-type R&D institutions, and specialized industrial parks. Support the “UST Silicon Valley” guiding fund in jointly establishing sub-funds with these entities to achieve the vision of “one building as an innovation consortium, one building as an industrial chain.” Provide development support on a case-by-case basis through a “fund + grant/subsidy” approach.
II. Establishing a New R&D Model
3. Support new R&D institutions in attracting high-level talent. Allow talent to sign employment agreements with both universities/research institutes and new R&D institutions, achieving “dual affiliation.” Provide incremental funding support to “dual-affiliated” researchers through a “funds + grants and subsidies” approach. For research team leaders classified as Category B or higher talent (as recognized by the “Hefei High-Level Talent Classification and Recognition System,” hereinafter the same), upon recognition, provide up to 1 million yuan in industrialization funding support.
4. Support the construction of proof-of-concept centers, pilot and intermediate-scale testing facilities, and public service platforms. Encourage enterprises and research institutions to establish, or jointly build with local governments, proof-of-concept centers, pilot and intermediate-scale testing platforms, and public service platforms. Through a “funds plus grants and subsidies” approach, provide matching support of up to 50% of the investment amount, not exceeding 200 million yuan, with construction and operational matters stipulated in the agreement. Provide “case-by-case” support for pilot and intermediate-scale testing platforms and public service platforms that achieve breakthroughs in key core technologies and lead industrial development.
5. Encourage collaborative innovation. Promote research cooperation and technological breakthroughs by new R&D institutions within “UST Silicon Valley” in response to the needs of non-affiliated enterprises. For platforms with excellent performance evaluations, provide rewards of up to 10% of the actual revenue generated from technology transfer, commissioned R&D, and technical services provided to the industry, with a maximum annual reward of 5 million yuan per institution.
6. Revitalize existing assets. Encourage and guide state-owned enterprises and institutions, collective units, universities and research institutes, as well as private enterprises within “UST Silicon Valley” to utilize existing buildings and convertible assets to participate in the construction of new R&D institutions and incubation facilities in accordance with laws and regulations. Explore opening major scientific and technological infrastructure and large-scale scientific research instruments to the public for shared use.
III. Innovating Mechanisms for the Commercialization of Scientific and Technological Achievements
7. Support the Transfer and Commercialization of Scientific and Technological Achievements within “UST Silicon Valley.” Support researchers from universities and research institutes in commercializing their in-service scientific and technological achievements within “UST Silicon Valley.” Provide researchers with a one-time reward equal to the amount of cash revenue generated from the transfer or licensing of such achievements, based on the financial contribution to provincial and municipal coffers.
8. Support the use of surplus funds from industry-academia collaboration projects for technology transfer. Inventors (or teams) from universities and research institutes within “UST Silicon Valley” may contribute surplus funds from industry-academia research projects as cash capital to invest in technology transfer projects that have been approved by their institutions and have clear property rights. The resulting profits shall be shared with the institution according to the agreed terms.
9. Establish a new model for technology transfer involving the conversion of grants into equity and equity into debt. Depending on the different stages of technology transfer projects, flexibly employ methods such as converting fiscal funds into equity or converting equity into debt for investment and adjustments. Project teams are permitted to repurchase the resulting shares in accordance with agreed-upon methods, timelines, prices, and proportions.
10. Support universities and research institutes in providing technology transfer services. Support universities and research institutes in establishing specialized technology transfer service agencies within “UST Silicon Valley.” Those contributing to technology transfer may allocate no less than 15% of the institution’s retained portion of net transfer income for staff incentives and institutional capacity building.An annual assessment of technology transfer work in “UST Silicon Valley” will be conducted. Each year, 10 institutions or alumni organizations that have made outstanding contributions to technology transfer will be selected and awarded 100,000 yuan each for staff incentives.
11. Promote the Demonstration and Application of Scientific and Technological Achievements. New products and technologies developed in “UST Silicon Valley” that are included in Hefei’s municipal “Three New” product catalog may be directly incorporated into provincial “Three New” and “Three Firsts” catalogs. They will receive support in government-funded key project procurement, and where eligible, may be procured through single-source procurement in accordance with the law.Pilot universities, research institutions, and healthcare organizations are encouraged to license scientific and technological achievements to small, medium, and micro enterprises within “UST Silicon Valley” on a “pay-after-use” basis. Relying on the Hefei Scenario Application Innovation Center, provide refinement, planning, and matching empowerment services for both supply and demand sides of scenarios within “UST Silicon Valley”; support the opening of application scenarios by government agencies, enterprises, and public institutions;Encourage the expansion of demonstration applications for new technologies and products through free provision or donations; grant “Demonstration” titles to recognized demonstration scenarios; provide financial rewards of up to 10 million yuan to the donating (or providing free) party based on the actual investment amount in new technologies and products; and offer “case-by-case” rewards for demonstration application scenarios with particularly significant influence.Relying on the USTC Silicon Valley service platform company, pilot the establishment of an application scenario leasing platform (or subsidiary) to procure new products and technologies in accordance with laws and regulations, provide application services to external parties, and include procurement costs in the platform company’s annual special budget.
IV. Encouraging Technology-Based Entrepreneurship
12. Encourage innovation and entrepreneurship among faculty, students, and alumni. Support faculty, students, and alumni from universities and research institutions with scientific and technological achievements to establish technology-based enterprises within “UST Silicon Valley.” Encourage commercial banks to provide unsecured loans to enterprises through “Government-backed Credit” products. Provide commercial banks with 100% risk compensation based on the amount of the enterprise’s first loan, with a maximum compensation of 2 million yuan. Provide a subsidy equal to the actual interest paid by the enterprise on its first loan, supporting no more than 100 enterprises annually.Universities and research institutes within the province shall allow students to retain their student status for up to three years while taking a leave of absence to start a business in “UST Silicon Valley,” and to continue accessing the institution’s entrepreneurial resources and related services. Support shall be provided for researchers from public institutions to establish enterprises, engage in part-time innovation, or participate in project collaborations in “UST Silicon Valley” either while on the job or on leave; such researchers shall enjoy the same rights as on-duty staff regarding professional title evaluation and appointment, job promotion, and social insurance.
13. Provision of startup experience apartments. For various technology-based projects (including individuals, teams, and enterprises) entering startup spaces such as incubators, co-working spaces, and new R&D institutions within “UST Silicon Valley,” core project members (no more than 5 people) who do not own their own housing in Hefei may, upon approval by the local government of their respective district, rent housing from state-owned leasing companies free of charge for 6 months, with a maximum area of 70 square meters;For those who rent housing independently, a one-time housing rental subsidy of up to 6,000 yuan per person will be provided. Local governments (or management committees) in each district are responsible for disbursing these funds, with provincial and municipal special funds covering 50% of the total costs. Special fund support for each county (city), district, or development zone shall not exceed 2 million yuan.
14. Provide startup support to high-level talent. High-level talent establishing enterprises in “UST Silicon Valley” that align with the development direction of our city’s key industrial chains may, upon certification, receive up to 5 million yuan in startup funding and 500 square meters of startup space through a “fund + grant” approach, based on factors such as the enterprise’s registered capital and team composition. The provision of startup space shall be implemented by the county (city), district, or development zone where the project is located.
15. Encourage spin-offs from major scientific facilities and platforms. High-value-added technology enterprises incubated through major scientific infrastructure or national-level innovation platforms—which primarily focus on intellectual property output and are registered within “UST Silicon Valley”—will receive support via a “fund + grant” approach. Support will be provided to no more than 10 such enterprises annually, with a maximum of 10 million yuan per project. For key projects that achieve breakthroughs in core technologies and lead industrial development, continuous support will be provided for up to 5 years, with a cumulative maximum of 100 million yuan.
16. Establish the “UST Silicon Valley” Major Industrialization Development Program. Implement this program using a “fund + grant and subsidy” approach to provide financial support for up to three consecutive years, with a maximum cumulative support of 50 million yuan per project. The grant and subsidy portion will be disbursed in installments based on project performance targets and progress commitments; the remaining funds (in principle, not exceeding 20%) will be disbursed upon successful project acceptance.
17. Support the establishment of joint funds with major science and technology funds under national ministries and commissions.Explore a development model for basic research guided by the state and supported by local governments, and promote the joint establishment of funds such as natural science funds and technology innovation guidance funds with major science and technology funds under relevant national ministries. Focusing on key industrial chain sectors and addressing major scientific problems and critical technological challenges within the “UST Silicon Valley” region, support universities, research institutes, and key enterprises in conducting basic and applied basic research to promote the transformation of scientific and technological achievements. Support the recognition of joint funds as vertical research projects, which can be used for the evaluation of scientific and technological achievements and professional title assessments.
18. Support the development of science and technology services. Support the development of new business models for the valuation of scientific and technological achievements, and introduce and cultivate high-level planning and creative teams to provide strategic consulting and planning for enterprise development. Support the cultivation and introduction of high-end science and technology information service companies, industrial design firms, law firms, and accounting firms to provide high-level professional services to innovation and entrepreneurship teams and talent in “UST Silicon Valley.”
19. Strengthen end-to-end services. Continuously foster a first-class business environment to provide convenient, efficient, and tailored services to innovation and entrepreneurship entities to the greatest extent possible. Enhance coordination between municipal and district levels to offer online operational guidance combined with offline “assistance and proxy” services. Actively facilitate connections between investment institutions, operators of business incubation facilities, policy consulting agencies, and startup enterprises to design optimal solutions for business development.
V. Attracting Innovation and Entrepreneurship Talent
20. Innovate talent evaluation methods. Grant autonomous talent evaluation quotas to eligible enterprises and new R&D institutions registered in “UST Silicon Valley.”National high-tech enterprises with annual revenue of 100 million yuan or more will be granted up to 3 slots for Category D self-evaluation talent; for every additional 100 million yuan in revenue, one additional slot will be granted, with a total cap of 10 slots. New R&D institutions rated as “excellent” (as assessed under the “Hefei Municipal Detailed Rules for Categorized Support and Management of High-Quality New R&D Institutions”) will be granted up to 5 slots for Category D self-evaluation talent, equivalent to 5% of their total hired staff.Establish a positive and negative list for autonomous evaluation. Talent identified through autonomous evaluation will be included in Hefei’s high-level talent management and service system and enjoy corresponding talent policies upon approval by peer experts. For those who meet the criteria, the competent authority will issue the “Jianghuai Elite Talent Card” and conduct tier classification, allowing them to enjoy corresponding policies in accordance with the “Anhui Province Jianghuai Elite Talent Card Management Measures.”
21. Increase subsidies for “high-end, specialized, and scarce” talent. For high-end and scarce talent working in “UST Silicon Valley” enterprises who are certified as Category C or above, and for those from universities and research institutes participating in the construction of “UST Silicon Valley” who are certified as Category B or above, a reward equal to the amount by which their annual salary-based income generated within “UST Silicon Valley” exceeds 15% of the local fiscal contribution will be provided.
22. Provide one-stop talent services. Establish a “UST Silicon Valley” one-stop service window to provide comprehensive support in areas such as talent certification, innovation and entrepreneurship, housing, healthcare, children’s education, and spousal employment, ensuring that preferential policies for talent are implemented with a single click. Leverage existing public institutions to facilitate the transfer of personnel relationships for talent introduced to “UST Silicon Valley.”
VI. Innovating Investment and Financing Models
23. Encourage “Early-Stage and Small-Scale Investment.” For social funds (investment institutions) that invest in early-stage, small-scale technology-based enterprises within “UST Silicon Valley” and hold shares for at least two years, a reward equal to 10% of the actual investment amount will be granted. The maximum reward for the fund (investment institution) management entity per invested enterprise is 1 million yuan, with an annual cumulative reward cap of 5 million yuan per fund (investment institution) management entity.“UST Silicon Valley” is encouraged to guide its funds, in collaboration with leading enterprises, new R&D institutions, and high-quality fund management companies, to establish seed and angel funds, thereby fostering the aggregation of the industrial ecosystem.
24. Innovate the management of state-owned equity funds. When state-owned equity funds invest in enterprises registered in “UST Silicon Valley,” the method of share transfer may be executed in accordance with contractual agreements, and the management team is permitted to co-invest up to 10% of the state-owned fund’s investment amount.If the management team of the “UST Silicon Valley” Guidance Fund meets performance evaluation requirements and strictly fulfills its duty of care but still incurs investment losses, a risk tolerance of up to 50% will be granted; any excess losses shall be offset by the management fees and incentive funds received by the relevant fund management institution.
25. Implementation of Equity Investment Incentives.For venture capital funds and fund management institutions registered in “UST Silicon Valley” that invest more than 80% of their total investment in “UST Silicon Valley” projects and choose to be accounted for as a single investment fund, the portion of their individual partners’ investment income, profit-sharing income, and equity transfer gains shall be subject to a 20% personal income tax rate. An equal-value reward shall be granted based on the resulting contribution to provincial and municipal fiscal revenue, with a maximum of 5 million yuan per person.
26. Encourage commercial banks to innovate credit services. Establish a “UST Silicon Valley” white list for small, medium, and micro enterprises, incorporate the enterprise “white list” database into the scope of “Government-backed Credit” support, and provide loan support of up to 10 million yuan.Government-backed guarantee institutions shall charge guarantee fees not exceeding 1% per annum, and a premium subsidy equal to 1% of the guaranteed amount shall be provided to such institutions. For unsecured loans and guaranteed loans under the “Government-Bank Credit” program provided by commercial banks and government-backed guarantee institutions, risk compensation of 80% and 70%, respectively, shall be provided.
27. Promote the development of public welfare initiatives in “UST Silicon Valley.” Establish a special fund to raise capital for supporting the construction of “UST Silicon Valley.” Enterprises, social organizations, and individuals who make significant contributions to the construction of “UST Silicon Valley” shall be commended in accordance with relevant policies. Charitable donations made by enterprises to support the construction of “UST Silicon Valley” shall be treated as corporate R&D expenditures and shall be eligible for preferential treatment in accordance with relevant regulations governing charitable donations.
VII. Supplementary Provisions
28. Scope of Eligibility.Eligible entities are enterprises and institutions with independent legal person status that meet the “UST Silicon Valley” project inclusion criteria, are located within the “UST Silicon Valley” area, and apply for policy support in accordance with laws and regulations. Funding for major projects under the “case-by-case” support mechanism may be allocated from the annual special fund budget under this policy. This policy shall not be enjoyed concurrently with similar provisions of other municipal fiscal policies; entities benefiting from the “case-by-case” policy shall not be eligible for other provisions of this policy.
29. Compliance with Policy Requirements. Applicants are responsible for the authenticity of their application materials and must submit a letter of commitment to honesty and integrity. Any funds obtained through fraud or misrepresentation will be recovered, and the entity will be entered into the Hefei Municipal Industrial Policy Management Information System; such entities will be ineligible to apply for any municipal policy projects for a period of three years.
30. Implementation Notes. This policy shall take effect on June 13, 2022, and remain valid for three years. A rapid response mechanism for advantageous policies within “UST Silicon Valley” shall be established. Based on implementation outcomes, appropriate adjustments to the policy may be made annually upon approval by the Office of the Leading Group for the Construction of “UST Silicon Valley.”All relevant counties (cities), districts, and development zones shall formulate supporting policies in accordance with this policy to establish a policy framework supporting the construction of “UST Silicon Valley.” The Office of the Leading Group for the Construction of “UST Silicon Valley” is responsible for interpreting this policy.
Office of the Hefei Municipal People’s Government
Issued on January 16, 2023
