Original Title: Notice from the Office of the Shandong Provincial Department of Science and Technology on Issuing the "Registration Standards for New R&D Institutions in Shandong Province"
These registration standards have been formulated to further strengthen and standardize the registration process for new R&D institutions in Shandong Province, improve their development standards and innovation capabilities, enhance the overall effectiveness of the innovation system, and support and lead high-quality industrial development. For new R&D institutions that have not been registered in accordance with these standards, the science and technology bureaus of each city shall implement procedures in reference to these standards.
I. Basis for the Standards
Policy documents including the “Guiding Opinions on Promoting the Development of New R&D Institutions” (Guo Ke Fa Zheng [2019] No. 313) and the “Interim Measures for the Administration of New R&D Institutions in Shandong Province” (Lu Ke Zi [2019] No. 7).
II. Functional Positioning
New R&D institutions primarily refer to independent legal entities with diversified investment sources, varied organizational structures, modern management systems, market-oriented operational mechanisms, flexible personnel systems, sustainable development capabilities, and the capacity for collaborative innovation among industry, academia, and research. The core function of new R&D institutions is to conduct industrial technology R&D, while also performing functions such as basic research, applied basic research, technology R&D, technology transfer and commercialization, incubation and cultivation of technology-based enterprises, industrial investment and financing, and the aggregation and cultivation of high-end talent.
III. Development Models
(1) Government-Led Model. Independently established with government capital, registered as a public institution or enterprise, and operating under a management mechanism characterized by no supervising authority, no administrative rank, corporate-style management, and market-oriented operations.
1. The “Shandong Industrial Technology Research Institute” model focuses on breakthroughs in key core technologies and common industrial technologies, as well as the transformation and industrialization of research outcomes. The government establishes the platform, adopting a structure comprising “the Institute + investment and development companies + specialized research institutes and other innovation entities.” It attracts and aggregates high-level research institutions and talent teams through various means, including new construction, affiliation, and mergers and acquisitions.
2. The “Shandong Advanced Technology Research Institute” model focuses on basic research and original innovation. The government establishes a platform that adopts a training system emphasizing both academic and applied talent, attracting universities, top scientists, and research teams to conduct R&D on-site while promoting open resource sharing.
3. The “Shandong Energy Research Institute” model focuses on target industries. It is a comprehensive research institution integrating basic research, R&D of key core technologies and industry-common technologies, technology transfer, and industrialization. The government establishes the platform, adopting a “single leadership team, dual-brand” model, and collaborates with research institutions, universities, and enterprises with strong innovation capabilities through market-based mechanisms.
(2) “Government+” Model. The government takes the lead in attracting top-tier domestic and international universities, research institutions, high-level talent teams, central and local large state-owned enterprises, Fortune 500 companies, and foreign R&D-oriented enterprises to establish new R&D institutions in Shandong, or to jointly establish such institutions with provincial universities and research institutions.
(3) The “Enterprise+” Model. Leading enterprises and competitive enterprises in their industries serve as the primary investors and builders, integrating innovation resources from universities, research institutions, and enterprises in relevant fields to jointly establish new R&D institutions.
(4) “Talent+” Model. Leading talents in strategic scientific and technological innovation and high-level innovation teams take a leading role in R&D and technology transfer by acquiring equity in R&D institutions, while enterprises provide venues, markets, and other resources to support the R&D and technology transfer activities of these experts and teams, thereby bridging the gap between technology and market demand.
(5) Other Models. Support research institutes, engineering technology research centers, and similar entities in innovating their institutional mechanisms and governance models to transition into new R&D institutions. Promote the upgrading of provincial-level engineering technology research centers into high-level new R&D institutions.
IV. Basic Requirements for Filing
(1) Possess independent legal person status, be registered within Shandong Province, have primary office and research facilities located in Shandong, and have been in operation for at least one year following registration.
(2) The primary business activities must include basic research, applied basic research, R&D of key generic technologies for industry, technology transfer and commercialization, as well as R&D services.
(3) Possess a modern management system with sound and comprehensive internal control mechanisms. Have flexible talent incentive mechanisms and open recruitment and employment policies. Establish clear internal management systems for personnel, compensation, and financial management. Establish market-oriented decision-making mechanisms and efficient mechanisms for the transformation of scientific and technological achievements.
(4) Possess a talent team with a relatively reasonable and stable structure and strong R&D capabilities, with no fewer than 10 full-time R&D personnel. The proportions of personnel engaged in scientific research, technological innovation, and R&D services must be no less than 70%, 50%, and 30% of the total workforce, respectively. Personnel holding a doctoral degree or senior professional titles must constitute no less than 30% of the total R&D workforce (full-time R&D personnel and employees are counted based on actual work exceeding 90 days per year).
(5) Possess relatively stable sources of revenue. The total revenue from investor contributions, technology development, technology transfer, technical services, technical consulting, government procurement of services, and funding obtained from undertaking research projects accounts for more than 60% of total annual revenue.
(6) Possess sound financial standing, with R&D expenditures in the previous fiscal year accounting for no less than 30% of total annual revenue.
(7) Possess the research facilities, scientific instruments, and permanent premises necessary to conduct research, development, and testing, with research space of at least 500 square meters and the original value of instruments and equipment generally exceeding 5 million yuan; R&D service providers must possess the conditions and facilities necessary to conduct R&D services.
(8) The sponsoring entity (the competent authority or investor) must be able to provide support for the management, operation, and R&D innovation of the new R&D institution.
(9) Entities primarily engaged in manufacturing, sales and operations, teaching and education, testing and inspection, or park management are not currently included in the scope of new R&D institutions.
(10) The entity has not engaged in any illegal or non-compliant activities or committed serious acts of bad faith in the past two years.
V. Management and Operation Mechanisms
(1) To promote the development of new R&D institutions, emphasis must be placed on institutional and mechanism innovation, strengthened policy guidance and support, a balanced approach of incentives and constraints, and the mobilization of participation from all sectors of society. Through the development of new R&D institutions, the distribution of scientific research resources will be further optimized, industrial technology supply will be strengthened, the transfer and transformation of scientific and technological achievements will be promoted, and the deep integration of scientific and technological innovation with economic and social development will be advanced.
(2) In developing new R&D institutions, adhere to the principle of “whoever establishes it is responsible for it; whoever sets it up may dissolve it.” The sponsoring entity (the competent authority or investor) shall provide guarantees for the construction, operation, and R&D innovation of the new R&D institution, guide the institution to focus on scientific research, technological innovation, and R&D services, avoid broadening its functional scope, and prevent expansion into other fields.
(3) For new R&D institutions jointly established by innovation and entrepreneurship teams from universities and research institutes in collaboration with state-owned capital investment platforms and social capital, innovation and entrepreneurship team members are encouraged to invest cash to acquire a controlling stake. Universities and research institutes are supported in contributing technical achievements and related intellectual property as equity, or in selecting projects with mature technologies and promising industrialization prospects, to form the institutions through a bundled approach involving teams, technology, capital, and assets.
(4) New R&D institutions established through diversified investment shall, in principle, adopt a decision-making system by a council or board of directors (hereinafter referred to as the “Council”) and a responsibility system led by the president, director, or general manager (hereinafter referred to as the “Head”). They shall formulate articles of association based on the investors’ agreement and operate in accordance with said articles.
1. The articles of association shall clearly define the responsibilities, composition, and selection mechanism of the Council; the selection and eligibility requirements for the Chairperson and members; the primary sources of funding and scope of operations; the management of revenue from core business activities; and the distribution mechanism for revenue from government-supported resources.
2. In principle, the members of the Board of Directors shall include representatives from the investors, the industrial sector, industry experts, and the institution itself. The Board of Directors is responsible for formulating and amending the Articles of Association, as well as reviewing and approving major matters such as development plans, annual work plans, financial budgets and final accounts, and compensation distribution.
3. The legal representative is generally the director of the institute. The director is fully responsible for scientific research operations and daily management, promotes internal control and oversight, implements Board resolutions, and is accountable to the Board.
4. An Advisory Committee shall be established to provide consultation on the institution’s development strategy, major scientific and technological issues, research integrity, and research ethics.
(5) New-type R&D institutions shall establish a scientific R&D organizational structure and internal management system. Based on the actual needs of scientific research, technological innovation, and R&D services, they shall independently determine R&D topics, dynamically establish R&D units, flexibly allocate research personnel, organize R&D teams, and deploy research equipment.
(6) New-type R&D institutions shall adopt market-oriented personnel mechanisms and compensation systems, fully leverage the decisive role of market mechanisms in the allocation of innovation resources, independently recruit personnel from society, reasonably determine employee salary levels in line with market-based compensation standards, and establish an income distribution mechanism commensurate with innovation capabilities and performance.
(7) New R&D institutions shall strengthen Party building. In accordance with the provisions of the Constitution of the Communist Party of China, they shall establish Party organizations, implement territorial management, fully leverage the role of Party organizations as strongholds, strengthen political guidance, and effectively ensure that the Party’s leadership is fully implemented.
VI. Filing Procedures
(1) Issuance of Notice. The Provincial Department of Science and Technology shall issue a notice regarding the filing of new R&D institutions in Shandong Province. Applicant entities shall log in to the Shandong Science and Technology Cloud Platform, fill out the relevant information as prompted, and upload supporting materials.
(2) Municipal Recommendations. Municipal science and technology bureaus shall conduct a preliminary review of the application forms, verify the completeness and compliance of the materials, and provide recommendations. Upon passing the preliminary review, applicant units shall print the paper materials online, which the municipal science and technology bureau shall then compile and submit to the Provincial Department of Science and Technology.
(3) Filing Review. The Provincial Department of Science and Technology conducts a formal review of the application materials and proposes a list of institutions for on-site inspection; the Department organizes experts or commissions third-party institutions to conduct on-site inspections and evaluations of the selected R&D institutions, and submits on-site inspection opinions.
(4) Public Notice of Results. Based on the on-site inspection findings, the Provincial Department of Science and Technology issues a filing recommendation and publishes a public notice regarding the proposed new R&D institutions. If no objections are raised during the public notice period and the matter is approved by the Department Director’s Executive Meeting, the list of registered new R&D institutions is officially released.
