Original Title: Implementation Opinions of the Shanghai Municipal People’s Government on Promoting the High-Quality Development of the City’s High-Tech Industrial Development Zones

Shanghai Municipal Government Regulation [2021] No. 9

To the People’s Governments of All Districts, and All Commissions, Offices, and Bureaus of the Municipal Government:

To thoroughly implement the “Several Opinions of the State Council on Promoting the High-Quality Development of National High-Tech Industrial Development Zones” (State Council Document [2020] No. 7) and to promote the high-quality development of the city’s high-tech industrial development zones (hereinafter referred to as “High-Tech Zones”), the following implementation opinions are hereby put forward:

I. Clarifying Guiding Principles and Development Goals

(1) Guiding Principles. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirit of the 19th National Congress of the Communist Party of China and the second, third, fourth, and fifth plenary sessions of the 19th Central Committee. We will thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches during his inspection of Shanghai and at the celebration marking the 30th anniversary of the development and opening-up of Pudong. We will use the new development philosophy to guide high-quality development, adhere to green and low-carbon development, uphold the “Four Orientations,” and strengthen the “Four Major Functions.”accelerate the development of the “Five-Type Economy,” advance the city’s digital transformation, and comprehensively enhance Shanghai’s urban soft power by focusing on integrated innovation across government, industry, academia, research, finance, services, and application. We will benchmark against the highest international standards and best practices, striving to become the first discoverers of scientific laws, the first creators of technological inventions, the first pioneers of innovative industries, and the first practitioners of innovative concepts.

(2) Development Goals. By 2025, a number of original achievements in basic and applied basic research with global influence will emerge; breakthroughs in a number of key core technologies will be achieved; a range of high-end products will be launched; a set of Chinese and international standards will be established; and a number of innovative, distinctive parks (bases) will be created,cultivate a cohort of internationally competitive innovative enterprises and world-class industrial clusters, making them the core vehicles for the city’s high-tech industries and strategic emerging industries, as well as testing grounds for deepening reforms. As the main battleground supporting the construction of Shanghai’s Science and Technology Innovation Center, we will take the lead in becoming a national demonstration zone for innovation-driven development and a pioneer in high-quality development, and basically complete the construction of high-tech parks with significant global influence.By 2035, the Innovation Source will become the primary engine driving high-quality development, with key industries moving to the high end of the global value chain, and a high-tech park with significant global influence will be fully established.

II. Enhancing Innovation Capabilities

(1) Construct Major Science and Technology Infrastructure. Enhance the concentration and visibility of the Zhangjiang Comprehensive National Science Center; improve the operational management and open-access mechanisms for a number of existing facilities such as the Shanghai Synchrotron Radiation Facility; advance the construction of major science and technology infrastructure projects such as the Hard X-ray Facility; and strive to build a world-class cluster of large-scale scientific facilities in the fields of photonics and life sciences. Strengthen research on future-oriented, forward-looking technologies and promote the construction of a new batch of large-scale scientific facilities.Encourage the establishment of scientific research funds based on major infrastructure to attract and gather more world-class international research teams to conduct research. (Responsible Units: Shanghai Science and Technology Innovation Office, Municipal Development and Reform Commission, Municipal Science and Technology Commission)

(2) Enhance Basic Research Capabilities. Build a number of comprehensive strategic scientific and technological forces; accelerate the establishment and operation of national laboratories; support the establishment of high-level research institutions; strengthen the development of research-oriented universities; and foster the development of basic disciplines and frontier interdisciplinary fields. Encourage various innovation entities to engage proactively in basic research; support the establishment of innovation consortia led by leading enterprises with multi-party participation; encourage enterprises and universities to establish joint laboratories or research institutes; and guide social capital to increase investment in basic research through various channels.(Responsible Units: Municipal Science and Technology Commission, Municipal Development and Reform Commission, Municipal Education Commission, Municipal State-owned Assets Supervision and Administration Commission, Municipal Finance Bureau, Shanghai Science and Technology Innovation Office)

(3) Attracting High-Level Talent from Home and Abroad. Increase support for outstanding young scientists and implement the Basic Innovation Talent Cultivation Program; strengthen talent leadership in key industrial sectors and implement the Excellence in Manufacturing Talent Enhancement Program; promote the development of highly skilled talent and implement the Highly Skilled Talent Revitalization Program.Innovate approaches to attracting overseas talent, implement open and convenient policies regarding entry and exit as well as work permits, implement reforms allowing foreign high-level talent holding permanent residence ID cards to establish technology-based enterprises, and implement preferential individual income tax policies for high-end, in-demand talent returning from abroad. Implement more attractive policies to attract domestic talent, increase efforts to recruit talent in key industries, key regions, and basic research fields, and improve policies regarding talent residency and housing. Increase rewards for talent in key industries.(Responsible Units: Municipal Human Resources and Social Security Bureau, Municipal Education Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Commission of Commerce, Municipal Finance Bureau, Municipal Taxation Bureau, Municipal Public Security Bureau, Shanghai Science and Technology Innovation Office, and district governments)

III. Cultivating Innovative Industrial Clusters

(1) Optimize Industrial Spatial Layout. As a key industrial pillar supporting Shanghai’s strategy of “radiating from the center, developing both wings in tandem, driving growth in new cities, and transforming the north and south,” we will prioritize the development of a “3+X” industrial system centered on integrated circuits, biopharmaceuticals, and artificial intelligence.We will establish a “one core, two wings, and multiple nodes” spatial layout for the integrated circuit industry; a “1+5+X” spatial layout for the biopharmaceutical industry; and an “east-west clustering, multi-point linkage” spatial layout for the artificial intelligence industry, thereby enhancing the industrial concentration within specialized industrial parks. (Responsible Units: Shanghai Science and Technology Innovation Board, Municipal Commission of Economy and Information Technology, Municipal Planning and Natural Resources Bureau, Municipal Science and Technology Commission, and district governments)

(2) Enhance the Influence of the Three Major Industries. Accelerate the implementation of the “Shanghai Plan” for the three major industries: integrated circuits, biomedicine, and artificial intelligence.Strengthen independent innovation capabilities across the entire integrated circuit industry chain, intensify efforts in the research and development of forward-looking and disruptive technologies, and accelerate breakthroughs in key core technologies. Enhance the level of synergy within the biopharmaceutical industry chain, promote the construction of major national-level innovation platforms in the biopharmaceutical sector, leverage the Marketing Authorization Holder (MAH) system to encourage the adoption of organizational models such as contract research and manufacturing (CRO/CMO), explore win-win industrial linkage mechanisms, and establish a new development model featuring the synergy between “Zhangjiang R&D and Shanghai Manufacturing.”Promote the deep integration of artificial intelligence into the real economy, enhance foundational innovation capabilities, achieve breakthroughs in underlying technologies, establish a number of high-level platforms, actively expand application scenarios, amplify the effect of AI “empowering all industries,” and better realize the value of AI technology. Develop a number of future-oriented pioneer industries, and strengthen scientific and technological research and forward-looking planning. (Responsible Units: Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Drug Administration, Shanghai Science and Technology Innovation Office, and district governments)

(3) Building Several Distinctive Industrial Clusters. Accelerate the development of several distinctive industries, including the digital economy, green and low-carbon sectors, new energy vehicles, high-end equipment manufacturing, aerospace, information and communications, and new materials, to create high-end industrial clusters with international competitiveness. Accelerate the digital industrialization and industrial digitalization processes, strengthen the systematic integration and comprehensive application of digital technologies, optimize the layout of digital infrastructure construction, and establish a number of influential online new economy eco-parks such as “Zhangjiang Online” and “Changyang Show Belt.”Enhance the capacity for green and low-carbon technological innovation and increase the proportion of such industries, focusing on areas such as energy conservation and environmental protection, clean production, and clean energy to carry out technological innovation initiatives. Promote the expansion of the new energy vehicle industry, accelerate the R&D of key components and breakthroughs in core technologies, and enhance capabilities in connected and intelligent applications. Improve the independent R&D, manufacturing, and system integration capabilities of the high-end equipment industry, with a focus on developing intelligent manufacturing systems, complete sets of equipment, and key technological equipment.Strengthen aerospace technology research and supporting capacity building, and advance the industrialization and series development of civil aerospace products. Promote the communications and networking industries, focusing on the development of next-generation IP networks, communications equipment manufacturing, 5G industry terminals, and the Internet of Things (IoT). Promote the intensive, high-end, and green development of the new materials industry, with a focus on advanced basic materials and key strategic materials. (Responsible Units: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Development and Reform Commission, Shanghai Science and Technology Innovation Office, and district governments)

(4) Cultivating Innovative Technology Enterprises. Encourage enterprises to increase R&D investment and fully implement institutional tax incentives such as additional deductions for R&D expenses, corporate income tax preferential policies for high-tech enterprises, inclusive tax reductions for small and micro enterprises, and tax exemptions for technology transfers, as well as industrial policies such as special tax incentives for software, integrated circuit, and technology-intensive service enterprises.Implement municipal government first-purchase and procurement measures for innovative products, and encourage and support the research and application of innovative products such as the first units (sets) of high-end intelligent equipment, first versions of software products, and first batches of new materials. Leverage the role of state-owned asset revenue funds to encourage state-owned enterprises to continuously increase innovation investment and maintain reasonable annual growth. Promote pilot reforms in state-owned technology-based enterprises regarding equity incentives and compensation distribution to unleash their innovative vitality.Promote the improvement of quality management systems in technology-based enterprises, help them master advanced quality management methods, and enhance the quality of products and services. Deepen innovative measures such as facilitating the import of R&D supplies for science and technology innovation institutions and conducting pilot programs for bonded supervision of R&D operations within customs special supervision zones. (Responsible Units: Municipal Commission of Economy and Informatization, Municipal Science and Technology Commission, Municipal Finance Bureau, Municipal Taxation Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Market Regulation Bureau, Shanghai Science and Technology Innovation Office, Shanghai Customs)

(5) Promote the Transfer and Commercialization of Scientific and Technological Achievements. Launch pilot programs to grant researchers ownership or long-term usage rights to scientific and technological achievements generated in the course of their duties, and explore pilot programs for the proactive public licensing of scientific and technological achievements that have not been commercialized within a certain period.Advance the delegation of approval authority for the recognition and registration of technology contracts, and explore a notification and commitment system for technology contract registration. Promote the integration of resources in the technology market, leverage the functions of the Shanghai Technology Exchange, the National Technology Transfer Eastern Center, the International Operation (Shanghai) Pilot Platform of the National Intellectual Property Operation Public Service Platform, and the Chinese Academy of Engineering Academicians’ Achievement Transformation Center, support the development of science and technology innovation and entrepreneurship platforms and technology service institutions, and provide specialized, market-oriented services to various innovation entities in areas such as intellectual property protection, technology transfer, research and development, and testing, inspection, and certification.Promote the high-quality development of university science and technology parks, transforming them into the “first stop” for the commercialization of university scientific and technological achievements and the “core incubators” for regional innovation and entrepreneurship. (Responsible Units: Municipal Science and Technology Commission, Municipal State-owned Assets Supervision and Administration Commission, Municipal Intellectual Property Office, Municipal Commission of Economy and Information Technology, Municipal Finance Bureau, Municipal Education Commission, Shanghai Science and Technology Innovation Office, and district governments)

IV. Strengthening Open Innovation and Cooperation

(1) Serve the Yangtze River Delta Integration Development Strategy. Leveraging the Yangtze River Delta Branch Centers of the National Medical Products Administration’s Drug Evaluation and Inspection Center and Medical Device Technology Evaluation and Inspection Center, we will promote the coordinated and innovative development of the biopharmaceutical industry in the Yangtze River Delta region. We will support the construction of the Yangtze River Delta National Technology Innovation Center to facilitate the flow of innovation factors and the integration of innovation chains. (Responsible Units: Municipal Drug Administration, Municipal Science and Technology Commission, Municipal Development and Reform Commission, Shanghai Science and Technology Innovation Office)

(2) Elevating the Level of Domestic and International Science and Technology Innovation Cooperation. Attract high-quality resources by bringing in world-class universities and research institutions to participate in and initiate major international scientific programs and projects, and establish globally renowned scientific and technological journals. Support technology enterprises in expanding into international markets and participating in the formulation of international standards and rules. Amplify the international influence of events such as the China International Import Expo, the Pujiang Innovation Forum, the World Artificial Intelligence Conference, and the World Top Scientists Forum.Encourage international cooperation in the field of science and technology innovation, host internationally influential innovation and entrepreneurship competitions, and establish joint incubators and international cooperation innovation parks. (Responsible Units: Municipal Science and Technology Commission, Municipal Commission of Commerce, Municipal Commission of Economy and Information Technology, Shanghai Science and Technology Innovation Office)

V. Fostering an Environment for High-Quality Development

(1) Deepen Reforms of Management Systems and Mechanisms. Establish a modern science and technology innovation governance system and advance the comprehensive innovation reform pilot program. Implement a series of innovative reform measures in areas such as basic research, technological breakthroughs, technology transfer, industrial development, the innovation environment, and resource allocation. Promote the implementation of the “Regulations on the Construction of the Shanghai Science and Technology Innovation Center” and continue to ensure the effective implementation of the “25 Measures for Science and Technology Reform.”Promote the reform and innovation initiatives of Pudong New Area in strengthening the innovation engine, enhancing the systematic integration of reforms, advancing high-level institutional opening-up, and strengthening the capacity for global resource allocation. Relying on the “One-Stop Online Government Services” platform and the “Integrated Online City Operations Management” system, comprehensively improve the quality and efficiency of service management. Establish a system of delegated authority lists to grant qualified parks corresponding powers in economic management and development and construction management.We will continue to deepen the “streamlining administration, delegating powers, and improving services” reform and commercial system reform, and promote the implementation of the “one industry, one license” and “one license, multiple locations” systems. (Responsible Units: Municipal Development and Reform Commission, Municipal Science and Technology Commission, Shanghai Science and Technology Innovation Office, General Office of the Municipal Government, Municipal Market Regulation Bureau, etc.)

(2) Improve the efficiency of land resource allocation. Industrial land designated for industrial projects may be granted for a term of 50 years to projects identified by municipal industrial authorities as national strategic industrial projects, municipal-level strategic key industrial projects, or manufacturing innovation centers and enterprise technology centers at the municipal level or above.Increase the floor area ratio (FAR) of industrial land to unlock development potential. The FAR for industrial land may be set at 2.0 or higher, and for general-purpose R&D land at 3.0 or higher. For existing industrial land where an increase in FAR or expansion of underground space is approved, no additional land premiums will be charged.Surplus portions of industrial land designated for industrial projects that meet planning subdivision criteria may be transferred through the land transaction market via a “project-linked” listing method to industrial park platforms or projects that have passed industrial access reviews.Increase the proportion of mixed-use industrial land. Within single-use industrial land, the proportion of other industrial uses and living support facilities may be increased to 30% of the total above-ground floor area, with the proportion allocated to living support facilities such as retail, catering, and dormitories not exceeding 15% of the total above-ground floor area. (Responsible Units: Municipal Planning and Natural Resources Bureau, Municipal Commission of Economy and Information Technology, District Governments)

(3) Promote the digital transformation of industrial parks. Advance the use of digital technologies to empower industrial park development, and build smart industrial parks through the reengineering of scenarios, business processes, management, and services. Support industrial parks in strengthening the integration of digital resources in infrastructure, operations management, and industrial services to enhance their digital capabilities. Encourage various entities to invest in and construct new infrastructure such as 5G networks, industrial internet, and big data centers within industrial parks, and promote the integrated application of next-generation information technologies—including big data, artificial intelligence, and the Internet of Things—within these parks.(Responsible Units: Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Shanghai Science and Technology Innovation Office, and district governments)

(4) Promote the green and low-carbon transformation of industrial parks. Advance the green upgrading of industrial park infrastructure, carry out demonstration applications of green and low-carbon innovative technologies, improve the level of ecological and environmental construction in industrial parks, and support industrial parks in establishing National Ecological Industrial Demonstration Zones. Qualified industrial park management agencies shall coordinate and balance various types of green spaces within the park. Where green spaces attached to completed projects need to be reduced due to expansion or renovation, they shall be prioritized for replenishment through the creation of new planned green spaces within the park; alternatively, district governments may balance and replenish such spaces among industrial parks within their jurisdictions.Encourage construction projects within industrial parks to implement rooftop greening. (Responsible Units: Shanghai Science and Technology Innovation Office, Municipal Development and Reform Commission, Municipal Ecology and Environment Bureau, Municipal Bureau of Greening and City Appearance, and district governments)

(5) Enhance the effectiveness of financial services. Deepen the “Pujiang Light” initiative to build a full-lifecycle science and technology financial ecosystem. Focus on increasing the proportion of direct financing, leverage the role of policy-guided funds, and encourage social capital to increase support for scientific and technological innovation. Promote high-quality technology enterprises to list on the STAR Market and other multi-tiered capital markets. Support technology enterprises in issuing innovation and entrepreneurship corporate bonds. Support the launch of exchange-traded fund (ETF) products based on the CSI Zhangjiang Independent Innovation 50 Index.Increase the allocation of technology-oriented loans, encourage banks in Shanghai to establish specialized technology-focused institutions, innovate technology-oriented loan products, and strengthen support through policy-based financing guarantees. Leverage the role of insurance in providing protection, and actively develop technology insurance products such as insurance for the first-of-a-kind major technical equipment, liability insurance for biopharmaceutical products, and comprehensive patent insurance.(Responsible Units: Municipal Bureau of Local Financial Supervision, Municipal Development and Reform Commission, Municipal Commission of Economy and Informatization, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Science and Technology Commission, Shanghai Science and Technology Innovation Office, Shanghai Banking and Insurance Regulatory Bureau, Shanghai Securities Regulatory Bureau)

VI. Strengthening Organizational Management

(1) Strengthen Primary Responsibility.District governments must earnestly assume primary responsibility for the construction and management of parks, treating them as key vehicles for implementing the innovation-driven development strategy. They should strengthen the coordination of park planning and construction, industrial development, and the allocation of innovation resources, and clarify the responsibilities of park management bodies and all relevant parties. Parks are encouraged to build on their industrial positioning and resource advantages to create distinctive, innovative parks (bases) with unique strengths, thereby promoting high-quality and coordinated development. (Responsible Units: Shanghai Science and Technology Innovation Office, Municipal Science and Technology Commission, District Governments)

(2) Implement Dynamic Management. Relevant municipal departments shall strengthen guidance for all parks, improve the park evaluation mechanism, align with the national comprehensive evaluation index system for high-tech zones, and enhance statistics and performance evaluations of high-tech zones. A dynamic adjustment mechanism for parks shall be established: parks with good evaluation results shall be commended, and those with high-quality development shall be prioritized for inclusion in high-tech zones; parks with poor evaluation results shall be issued warnings, and those failing to rectify issues effectively shall be removed from the high-tech zone.(Responsible Units: Shanghai Science and Technology Innovation Office, Municipal Science and Technology Commission, Municipal Commission of Economy and Information Technology, and district governments)

These Implementation Guidelines shall take effect on September 1, 2021.