Chapter I General Provisions
Article 1 (Purpose and Basis)
To implement national strategies, accelerate the construction of a science and technology innovation center with global influence, foster the development of the “Four New” economy (new technologies, new industries, new business formats, and new business models), develop strategic emerging industries, transform and upgrade traditional industries, further optimize the industrial structure, enhance industrial capabilities, and achieve economic transformation and upgrading, the Shanghai Industrial Transformation and Upgrading Development (hereinafter referred to as the “Special Fund”). These Measures are formulated to standardize the management of the Special Fund and improve its efficiency of use.
Article 2 (Funding Source)
The Special Fund is allocated from the municipal fiscal budget and incorporated into the departmental budget management of the Shanghai Municipal Commission of Economy and Information Technology (hereinafter referred to as the “Municipal Commission of Economy and Information Technology”).
Article 3 (Principles of Use)
The use of the Special Fund shall comply with national and municipal policy directions regarding industrial transformation and upgrading, conform to relevant regulations on fiscal budget management, focus on major projects, adopt innovative support methods, adhere to the principles of openness, fairness, and impartiality, and ensure the safe and efficient use of the special fund.
Article 4 (Management Responsibilities)
The Municipal Commission of Economy and Information Technology is responsible for determining the annual direction and key areas of support for the special fund, conducting daily management of the special fund, and implementing supervision and evaluation. The Shanghai Municipal Finance Bureau (hereinafter referred to as the Municipal Finance Bureau) is responsible for the budget management and disbursement of the special fund, and for supervising and inspecting the use of the special fund. Where the scope of use of the special funds involves multiple departments, each functional department shall, in accordance with the division of responsibilities and the relevant requirements of the scope of use, cooperate to ensure the proper use, management, and supervision of the special funds.
Article 5 (Implementation Rules)
The Municipal Commission of Economy and Information Technology, in conjunction with the Municipal Finance Bureau, shall formulate corresponding implementation rules within the scope of support specified in these Measures, based on the characteristics of each sector. The implementation rules shall specify the eligible applicants and conditions, scope of support, methods of support, fund disbursement, project management, and supervision and oversight.
Article 6 (Supervision System)
The allocation, disbursement, use, and management of the special funds shall be subject to audit supervision by audit authorities and supervision and oversight by disciplinary inspection and supervision authorities in accordance with the law, and shall also be subject to supervision by the Municipal People’s Congress and the public. Chapter II Scope and Methods of Financial Support
Article 7 (Scope of Support)
The special funds shall primarily be used for the following purposes:
(1) In-depth industrial development.Accelerate the automation, digitization, networking, and intelligent transformation of the manufacturing sector; focus on supporting industrial strengthening projects in key basic materials, core basic components (parts), advanced basic processes, and industrial technological foundations; prioritize support for technical renovation projects that promote green development, optimize product structures, enhance workplace safety, improve industrial agglomeration levels, and strengthen the construction of public service platforms, thereby driving the high-end, information-driven, and service-oriented transformation of the manufacturing sector. Support the construction of new industrial platforms and promote the transformation and upgrading of industrial parks.
(2) Industrial Technology Innovation. Deploy innovation chains around industrial chains; support the conquest of key industrialization technologies; promote the accelerated assimilation, absorption, and integrated innovation of internationally advanced technologies; facilitate effective collaboration, factor aggregation, and collaborative innovation among various innovation entities; support the construction of industrial technology innovation systems and capabilities; and accelerate the industrialization of innovation outcomes.
(3) First-Unit Breakthroughs and Demonstration Applications of High-End Intelligent Equipment. Support manufacturing enterprises and users in conducting joint R&D and collaborative innovation;Support the achievement of first-unit (set, batch) breakthroughs for high-end intelligent equipment and key components, as well as application demonstrations and the construction of platforms for inspection, testing, R&D, experimentation, verification, and test benches.
(4) Development of Production-Oriented Services. Support enterprises in aligning with industrial chains and upgrading value chains based on market demand, and in expanding and strengthening external service markets through organizational restructuring and business process reengineering; support production-oriented service functional zones in strengthening park construction, management, and service services; support the development of platform-based enterprises that are industry-leading, meet market demand, and serve small and medium-sized enterprises.
(5) Implementing a Brand Strategy. Support the shaping of city brands, the enhancement of regional brands, the creation of industry brands, and the development of corporate and product brands; build various public service platforms for brands and support their capacity enhancement; strengthen the protection of arts and crafts, support the inheritance, protection, and development of traditional arts and crafts, and make them stronger and more refined.
(6) Researching and Cultivating the “Four New” Economy.Encourage the development of “Four New” enterprises and team building; promote cooperation among “Four New” enterprises around industrial chains, value chains, and innovation chains; support industrial innovation alliances; and foster the development of the “Four New” economy.
(7) Local matching funds provided in accordance with regulations for major municipal projects supported by the state.
(8) Other matters approved by the municipal government.
Article 8 (Support Methods)
Special funds may be provided through methods such as grants in lieu of subsidies, non-repayable grants, loan interest subsidies, equity investment, premium subsidies, and the purchase of services. The specific support methods and standards shall be determined by the implementation rules for each sector.
Chapter III Budget Management and Fund Disbursement
Article 9 (Budget Preparation)
The Municipal Commission of Economy and Information Technology shall, in accordance with the relevant requirements for departmental budget preparation, prepare the special fund budget for the following year during the third quarter of each year, incorporate it into the departmental budget, and submit it to the Municipal Finance Bureau in accordance with prescribed procedures. The Municipal Finance Bureau shall determine the annual budget scale of the special fund based on factors such as the annual work plan proposed by the Municipal Commission of Economy and Information Technology, budget execution, and performance evaluation results from previous years, to determine the annual budget scale for the special funds.
Article 10 (Budget Execution)
The Municipal Commission of Economy and Information Technology, in accordance with national and municipal industrial development requirements, shall determine the priorities for support across various sectors of the special funds for the current year, issue annual application notices or guidelines for each sector, organize project applications and evaluations, establish a project database, and determine the annual project allocation plan for each sector. It shall strengthen the coordination between the special funds and social venture capital funds, encourage various social investment institutions to recommend projects to the Municipal Commission of Economy and Information Technology, and guide social venture capital institutions to invest in enterprises that have already received support from the special funds. The Municipal Commission of Economy and Information Technology is responsible for establishing a budget expenditure accountability system. Taking into comprehensive consideration the actual progress of project applications, reviews, and other activities within each sector, it shall reasonably schedule project expenditures based on the timeline. For individual projects whose execution progress is significantly lower than the overall execution progress of the special funds, adjustments may be made within the special funds themselves; for those that have rushed to arrange project expenditures at the end of the year for two consecutive years , the budget allocation for the relevant sector may be reduced.
Article 11 (Budget Adjustments)
Once the annual budget for the special fund is approved and issued, it must be strictly implemented. If adjustments are indeed necessary due to special circumstances, they must be submitted for approval in accordance with prescribed procedures.
Article 12 (Fund Disbursement)
Based on the annual budget, applications for fund disbursement shall be submitted to the Municipal Finance Bureau within the approved budget limit. After review by the Municipal Finance Bureau in accordance with regulations, the special funds shall be disbursed in accordance with relevant provisions on treasury payment management. Chapter IV Supervision and Management
Article 13 (Information Disclosure)
The Municipal Commission of Economy and Information Technology shall disclose the usage of special funds in accordance with the law and on a project-by-project basis.
Article 14 (Performance Evaluation)
The Municipal Finance Bureau and the Municipal Commission of Economy and Information Technology shall organize and implement performance evaluations of special fund projects in accordance with relevant regulations.
Article 15 (Project Management Expenses)
Expenses incurred by the Municipal Commission of Economy and Information Technology for assessments, audits, acceptance inspections, and other activities necessary to strengthen project management and standardize the use of special funds shall be charged to the special funds.
Article 16 (Audit Supervision)
The special funds shall undergo special audits by the audit department and audits by certified public accountants from the Municipal Finance Bureau in accordance with regulations, to ensure the standardized, secure, and effective operation of the special funds.
Article 17 (Accountability)
Special funds must be used exclusively for their designated purposes; withholding or misappropriation is strictly prohibited.Any acts of fraud, withholding, misappropriation, or other violations of national laws, regulations, or relevant disciplinary rules shall be handled in accordance with the "Regulations on the Penalties and Disciplinary Actions for Fiscal Law Violations" (State Council Order No. 427 of 2005), and the special funds already disbursed shall be recovered in accordance with regulations. Based on the project unit’s credit violations, the information shall be reported to the Municipal Public Credit Information Service , and corresponding restrictive measures shall be implemented at various management stages based on the severity of the breach.
Chapter V Supplementary Provisions
Article 18 (District and County Matching Funds)
Each district and county may, based on the characteristics of their respective regions and the actual conditions of industrial development, establish special funds and formulate corresponding support measures to support the transformation, upgrading, and development of regional industries.
Article 19 (Interpretation)
These Measures shall be interpreted by the Municipal Commission of Economy and Information Technology and the Municipal Finance Bureau.
Article 20 (Effective Date)
These Measures shall take effect on the date of issuance and remain valid until February 25, 2020. The original “Measures for the Administration of the Shanghai Special Fund for Enterprise Independent Innovation” (Shanghai Economic and Information Commission Document No. 353 [2013]), the “Measures for the Administration of the Shanghai Special Fund for Intellectual Property Advantage Enterprises” (Shanghai Economic and Information Commission Document No. 972 [2012]),the “Measures for the Administration of Special Funds for Accelerating the Development of Independent Brands in Shanghai” (Hu Jingxin Fa [2012] No. 766), the “Measures for the Administration of Special Guidance Funds for General Integration and General Contracting Projects in Shanghai” (Hu Jingxin Gui [2009] No. 260), and the “Measures for the Administration of Special Funds for the Protection of Traditional Arts and Crafts in Shanghai” (Hu Jingxin Gui [2009] No. 259) are hereby repealed simultaneously.