Original Title: Notice on the Issuance of the "Interim Measures for Promoting the Development of the Biotechnology Industry in Hongkou District"
To All Relevant Units:
The "Interim Measures for Promoting the Development of the Biotechnology Industry in Hongkou District" were reviewed and approved at the 46th Executive Meeting of the District Government on November 15, 2023. They are hereby issued for your implementation.
Hongkou District Science and Technology Commission
Hongkou District Development and Reform Commission
Hongkou District Finance Bureau
November 30, 2023
Interim Measures for Promoting the Development of the Biotechnology Industry in Hongkou District
To implement the "Several Opinions on Promoting the High-Quality Development of the City’s Biomedical Industry" (Shanghai Municipal Government Office Regulation [2021] No. 5), the "Action Plan for Accelerating the Development of Synthetic Biology Innovation Hubs and Building High-End Biomanufacturing Industrial Clusters in Shanghai (2023–2025)" (Shanghai Municipal Government Office Document [2023] No. 18),the "Opinions on Accelerating the Construction of the Science and Technology Innovation Center in Hongkou District" (Hongfa Gui [2021] No. 5), and other relevant documents, and in light of the actual conditions of this district, these Provisional Measures are hereby formulated to focus on key areas and core technologies of the biotechnology industry and accelerate the clustering and high-quality development of the biotechnology industry.
I. Development Objectives
By guiding the establishment of biotechnology projects and the clustering of enterprises, encouraging biotechnology research and the innovative development of key technologies, promoting the commercialization of biotechnology achievements, serving the biotechnology industry ecosystem, and actively attracting high-level talent in the biotechnology field, this plan aims to establish a new model of integrated development among the “four chains”—innovation, capital, industry, and talent. It seeks to accelerate the creation of a new engine for the biotechnology industry characterized by source innovation as the driving force, achievement commercialization as a distinctive feature, and industrial development as the ultimate goal.
II. Eligible Entities
Enterprises and institutions legally established in Hongkou District that are operating normally, have a good credit record, and are engaged in research, development, production, sales, or services related to scientific research and technological applications in the fields of synthetic biology, life sciences and health, medical devices, future health, biomaterials, as well as biopharmaceuticals, gene technology, and brain-computer interaction.
III. Division of Responsibilities
(1) The implementation rules, application notices, and application guidelines for the support measures covered by these Measures shall be separately formulated and issued by the relevant district departments.
(2) Relevant district departments shall, in accordance with financial support policy management regulations, provide follow-up management and services to supported enterprises, projects, and institutions, and shall, in conjunction with the District Finance Bureau, supervise the use and management of the support funds.
IV. Funding Sources
Funding shall be allocated from the Special Fund for Science and Technology Development, arranged annually through the district fiscal budget, and incorporated into the district’s special fund budget management.
V. Policy Measures
(1) Support for the Development of Specialized Biotechnology Industrial Parks.
1. Encourage the enhancement of science and technology innovation platforms to establish specialized biotechnology industrial parks. For recognized specialized biotechnology industrial parks, annual subsidies of up to 10% of the renovation investment, with a maximum of 30 million yuan, may be provided.
2. Encourage operating entities to apply for designation as Shanghai High-Quality Incubators (Incubation Phase); those that pass the filing and recognition process will receive a 1:1 matching reward from the municipal and district governments.
3. Annual assessments of the park’s industrial concentration, the industry influence of tenant enterprises, and innovation levels will be conducted. Based on ratings of “Excellent,” “Good,” and “Qualified,” performance-based rewards of 1.5 million yuan, 1 million yuan, and 500,000 yuan will be granted, respectively.
(II) Guiding the Clustered Development of Biotechnology Innovation Entities.
1. Support the recruitment of major and leading enterprises. Through policy guidance, focus on attracting and clustering a group of headquarters-based and leading enterprises in the biotechnology sector to settle in Hongkou. Upon approval, newly introduced major biotechnology projects or enterprises within the district will be granted relocation subsidies of up to 30 million yuan, distributed annually.
2. Subsidies for the Purchase of Business Premises. For newly introduced biotechnology enterprises or those relocating from other districts with good development prospects that purchase office, R&D, or production premises for their own use within the district, upon approval, a subsidy of up to 2% of the actual purchase price will be provided on an annual basis, with a maximum of 10 million yuan.
3. Subsidy for Leasing Business Premises. For newly introduced biotechnology enterprises or organizations that lease office, R&D, or production space within the district, upon approval, a subsidy of up to 30% of the annual rent will be provided for a maximum of three years, with a cumulative total not exceeding 10 million yuan.
4. Fixed Asset Investment Subsidy. To support biotechnology enterprises or entities in constructing physical projects, a subsidy of 15% of the statistically reported fixed asset investment amount will be provided upon verification, up to a maximum of 30 million yuan.
5. Revenue Growth Incentives. For biotechnology enterprises whose annual main business revenue, as recorded in statistics, exceeds 50 million yuan, 100 million yuan, 500 million yuan, or 1 billion yuan for the first time, a one-time incentive of 200,000 yuan, 500,000 yuan, 1 million yuan, or 1.5 million yuan, respectively, will be granted upon verification. After the annual main business revenue reaches a higher tier, the difference in the subsidy amount will be made up.
(III) Supporting the Growth and Strengthening of Biotechnology Enterprises.
1. Encouraging the Establishment of Innovative Functional Institutions. Focusing on the biotechnology sector, enterprises are encouraged to strengthen cooperation and jointly establish key laboratories, engineering (technology) research centers, enterprise technology centers, and proof-of-concept centers. Recognized innovative functional institutions will receive a one-time subsidy of up to 2 million yuan.
2. Encourage the establishment of public service platforms for the industry. Social institutions or organizations are encouraged to establish public service platforms for the biotechnology industry. Based on the platform’s leading and driving role in the industry, and upon recognition, funding will be provided annually at a rate not exceeding 30% of the total actual investment, up to a maximum of 3 million yuan.
3. Support enterprises in applying for innovation projects. For projects that secure funding from national or municipal-level initiatives, upon evaluation and approval, matching support of up to 1:2 will be provided annually, with a maximum total of 30 million yuan. Newly certified or newly relocated high-tech enterprises will receive a reward of up to 200,000 yuan; newly certified “Science and Technology Little Giants” and “Specialized, Refined, Unique, and New” enterprises will receive a reward of up to 3 million yuan through coordinated efforts between the municipal and district governments.
4. Empowering enterprise development through technology-driven finance.Industrial guidance funds are encouraged to prioritize investments in high-growth biotechnology enterprises; support will be provided to outstanding enterprises applying for financing loans, with loan interest subsidies of up to 50% of the current LPR annual interest rate upon approval; for enterprises obtaining guaranteed loans through professional guarantee institutions, subsidies of 90% of the actual guarantee fees will be provided; and for enterprises successfully listed on the Shenzhen Stock Exchange, Shanghai Stock Exchange, Beijing Stock Exchange, or overseas mainboards, support rewards of up to 5 million yuan will be granted.
5. Encouraging Enterprises to Expand Equity Financing. Upon verification and through coordinated efforts between municipal and district authorities, enterprises that secure equity investments from institutional investors will receive an annual reward of up to 6 million yuan, not exceeding 5% of the new financing amount.
(IV) Support for Biotechnology R&D Innovation and the Commercialization of High-Tech Achievements.
1. Encourage enterprises to engage in R&D and innovation. For actual R&D expenses incurred by enterprises during R&D activities, relevant national policies regarding pre-tax additional deductions for R&D expenses shall apply. For biotechnology innovation achievements commercialized within this district, upon evaluation and recognition, a subsidy of up to 10% of the verified new R&D expenses will be provided, with an annual cap of 50 million yuan.
2. Encourage the commercialization of high-tech achievements. For recognized high-tech achievement commercialization projects, financial support may be applied for in accordance with relevant policies, with a maximum annual support amount of 5 million yuan per project.
3. Strengthen the Development and Protection of Enterprise Intellectual Property. The creation and utilization of high-value intellectual property in the biotechnology sector are encouraged. Recipients of the Shanghai Intellectual Property Innovation Award will be granted a reward of up to 300,000 yuan; for other projects that have received national or municipal intellectual property project funding or awards, upon verification, a 1:1 matching grant will be provided, with an annual cap of 2 million yuan.
(V) Support for Biopharmaceutical (Medical Device) R&D.
1. Support for Clinical Trials of Innovative Drugs. For innovative drugs that have completed Phase I, II, or III clinical trials in China after January 1, 2023, upon evaluation and approval, priority will be given to award grants of up to 40% of the clinical trial R&D investment, with maximum amounts of 8 million yuan, 15 million yuan, and 50 million yuan, respectively.
2. Support for clinical trials of modified drug formulations. For modified new drugs that complete Phase I, II, or III clinical trials in China after January 1, 2023, upon evaluation and approval, rewards will be granted on a competitive basis at a rate not exceeding 20% of the clinical trial R&D investment, with maximum awards of 3 million yuan, 10 million yuan, and 40 million yuan, respectively.
3. For innovative drugs, improved new drugs, and generic drugs that have obtained drug registration certificates, upon evaluation and approval, rewards of up to 5 million yuan and 3 million yuan will be granted on a competitive basis, respectively.
4. To encourage the research and development of medical devices in the biotechnology sector, those that have passed registration inspections, completed clinical trials, and obtained registration certificates will, upon evaluation and approval, be eligible for rewards of up to 300,000 yuan, 800,000 yuan, and 2 million yuan, respectively, on a merit-based basis.
(VI) Strengthening the Talent and Intellectual Support for the Industry.
1. Intensify efforts to attract and cultivate high-level industrial talent. Use policies to attract high-level biotechnology industry talent and teams to settle in Hongkou, providing comprehensive services and establishing “green channels” for license processing, work permits for foreign nationals, residence permit points, residence-to-household conversion, talent recruitment, and talent apartments; support innovative talent in the biotechnology industry to participate in national, municipal, and district-level key talent programs, and provide corresponding talent rewards in accordance with regulations for those selected for such programs.
2. Implement a Key Industry Talent Incentive Program. Employees of key biotechnology enterprises, upon verification, may receive a monthly housing subsidy of up to 3,000 yuan for a period not exceeding three years; core personnel, upon verification, will be granted a settlement allowance of up to 200,000 yuan and a home purchase subsidy of up to 500,000 yuan in accordance with relevant policies.For biotechnology enterprises with a verified valuation (market value) of 1 billion yuan or more, a talent incentive of 300,000 yuan will be granted to the core team; for every additional 1 billion yuan in verified valuation (market value), the talent incentive for the core team will increase by 300,000 yuan; following an increase in the enterprise’s valuation (market value), the difference in the incentive amount will be supplemented.
VI. Supplementary Provisions
(1) These Trial Measures shall be implemented for the same enterprise or entity in accordance with the principles of selecting the most favorable and highest-value support, and avoiding duplicate benefits from various levels and types of support policies. For support implemented in installments, a comprehensive performance evaluation must be conducted at appropriate times; only those that pass the evaluation may receive the next installment of support. For enterprises or entities that have made significant contributions to the development of the biotechnology industry, special consideration may be given through established procedures.
(2) Enterprises and entities receiving support funds under these Measures are obligated to cooperate with audits of public funds.
(3) These Interim Measures shall take effect on December 6, 2023, and remain valid for three years. The District Science and Technology Commission, in conjunction with the District Development and Reform Commission and the District Finance Bureau, shall be jointly responsible for interpreting these Interim Measures.
