Notice of Printing the Several Policy Measures for Supporting the Innovation and Development Acceleration of Small and Mid-sized Enterprises in the New Era

  • 2019-08-13
To all the Department of Science & Technology in provinces, autonomous regions, municipalities, municipalities with independent planning status and science and technology bureau, Xinjiang Production & Construction Corps:
In order to deeply implement the major decisions and arrangements by China central government and the State Council to support private enterprises, accelerate the innovation-driven development for small and medium-sized enterprises (SME), and strengthen the policy guidance and precise support to technological SME, the MOST (Ministry of Science and Technology) formulated Several Policy Measures for Supporting the Innovation and Development Acceleration of Small and Mid-sized Enterprises in the New Era. It is hereby printed and distributed to you for compliance and implementation according to actual situation.

Ministry of Science and Technology
August 5, 2019

Several Policy Measures for Supporting the Innovation and Development Acceleration of Small and Mid-sized Enterprises in the New Era
As the scientific and technological innovation ability is the core competitiveness, technological SMEs are a key part in cultivating new development drivers and pushing high-quality development. The following policy measures made to support technological SMEs were formulated to thoroughly implement the spirit of the speeches by General Secretary Xi Jinping on the private enterprise forum, earnestly carry out the Guidance Opinions Concerning Expediting the Healthy Development of Small and Medium-sized Enterprises, accelerate the transition to innovation-driven development for private enterprises, SMEs especially, and lift technological innovative ability and core competitiveness.
I. Overall Train of Thought
We have followed the guidance of Xi Jinping thought on socialism with Chinese characteristics for a new era, implemented the spirit of the 19th CPC Congress, the second and third plenary sessions of the 19th CPC Central Committee, and lifted the main scale and innovation ability of technological SMEs as the key impetus, so as to optimize the technology innovation policy, supply more innovation service, stimulate innovative and entrepreneurial energy, guide the technological SMEs to increase research input, perfect technology innovation system, reinforce the innovation-based core competitiveness, and by so doing, to better drive high-quality development and help build a modern economic system.
II. Main Measures
(I) Expand the main scale of technological SME
1. Perfect the innovation and entrepreneurship incubation system. Optimize the ladder-like layout of professional maker space in major area and segmentation area, lift the service of professional maker space, help build the professional incubator alliance in several industries, and support the incubation of technological SMEs.
2. Encourage innovation and Entrepreneurship of scientific research personnel. Launch regulations to support entrepreneurship of scientific research personnel to better put in place the double employment mechanism among university and enterprise and school and enterprise. Support the foreign talents with permanent resident permit to start a technology-oriented enterprise with equivalent treatment to other Chinese citizens.
3. Strengthen the orientation of evaluation. Incorporate the technological SMEs in the evaluation index system of national high-tech zone, national innovation demonstration zone, innovative provinces, cities and counties. Optimize and expand the evaluation and database scale of technological SMEs respectively.
(II) Perfect and well implement the technology innovation policy.
4. Add policy incentives. Raise the proportion of weighted deduction of the research and development expenses of technological SMEs and put in place an inclusive tax reduction and exemption policy for technological startups.
5. Strengthen policy implementation and propaganda Further implement the supportive polices related to the deduction from income tax, VAT and deduction from income tax of technology development and transfer of high-tech enterprises, VAT exemption and deduction from income tax of small enterprises with low profits by cutting down some implementation requirements. Further propagate the current policies, and thoroughly interpret them to technological startups in the science parks, maker spaces and incubators.
(III) Provide more financial support to research and development for technological SMEs.
6. Provide more financial support. Support the technology innovation in SMEs through national science and technology plan, and directly support the research and development of SMEs by the improved scientific and technical projects, task arrangement and management. Encourage the local governments at all levels to set up a special fund to support the technology research and development of technological SMEs.
7. Support to implement national science and technology plan. During the implementation of National Key R&D Program of China, Science and Technology Innovation 2030-Major Projects and other plans organized by national science and technology team, the technological SMEs are supported to extensively participate in the projects guided by leading enterprises, universities and scientific research institutions, and join hands with them to make breakthrough in innovation. Encourage the technological SMEs to take the lead to apply for the tasks in appropriate load and requirements.
(IV) Guide the innovation resources into the technological SMEs.
8. Perfect the enterprise research and development system. Support technological SMEs to formulate science and technology innovation strategy, perfect internal R&D management system, promote and apply innovation method. Support the eligible ones to set up internal R&D platform and technology center, introduce and cultivate the backbone innovation teams, apply for high-tech enterprise certification, participate in building the national technology innovation center and state key laboratory of enterprise.
9. Encourage collaborative innovation of industry-university-research. Launch policy measures to strengthen the integrated innovation of industry-university-research for a new era, and guide the technological SMEs to conduct collaborative innovation by organizing the industrial technology innovation strategic alliance, research and development funds, laboratory, R&D crowdsourcing and sharing innovation resources.
10. Strengthen technology resources gathering and sharing. Encourage to create the characteristic carriers that are supported by technology resources or led by top talents, and guide the technological SMEs to carry out specialized division of labor. Help to create an open technology resource sharing network management platform among scientific research institutions, universities and large enterprises, and encourage to share the scientific instruments and facilities with the technological SMEs.
(V) Provide more innovation service to technological SMEs.
11. Promote technology innovation vouchers. Encourage to set up local special funds for technology innovation vouchers to reward or subsidize the service carriers in technological service-based SMEs in a way that government purchase public service.
12. Strengthen the cultivation and construction of technology service institutions. Launch required policy measures to develop new R&D institutions, set up pilots for the cultivation and construction of new R&D institutions, and carry out the outcome transformation and innovation service as a way to meet the innovation need in technological SMEs. Establish several professional technology transfer institutions in universities and scientific research institutions to provide professional service to help technological SMEs to apply the technology outcomes.
13. Set up characteristic service carrier. Set up an information service platform for national technological SMEs, hold the innovative products expo for them, and arrange the direct train of technology outcomes, so as to provide such integrated services as policy consultation, finance, technology transfer and government purchase.
(VI) Guide more support to technological SMEs from financial and capital markets.
14. Strengthen the guidance of venture investment. Expand the national technology outcome transformation to guide the fund function, and encourage the local governments and social capitals to establish the innovation and venture fund exclusively for technological SMEs, and set up the angel investment for the technological startups.
15. Expand the financing channels of enterprises. Set up the loan risk compensation pilot, and guide the bank load to support the technology outcome transformation of technological SMEs. Accelerate the pilot work of technology and finance combination, and speed up the investment loan linkage, intellectual property mortgage and financial leasing. Implement the “Growth Roadmap Plan 2.0 for Small and Mid-sized Technology-based Enterprises”, and provide convenience for the excellent enterprises to seek finance by being listed in New OTC and Sci-Tech innovation board.
(VII) Encourage the technological SMEs to cooperate internationally.
16. Strengthen communication about “the Belt and Road Initiative”. Explore how to better finish the property right transaction and technology transfer about “the Belt and Road Initiative”, and provide a favorable environment for technology cooperation among technological SMEs and countries involved in “the Belt and Road Initiative”.
17. Strengthen international talents communication and matching. Give priority to the technological SMEs to participate in the “International Outstanding Youth Program”, so as to help them to match the outstanding foreign youths from pertinent field. Encourage the technological SMEs to appoint professional and technical talents to join the mid-and-long term overseas training.
III. Organization and implementation
(I) Strengthen the organizational leadership The MOST will organize a group to promote the innovation of technological SMEs and coordinate the involved work. The science and technology management departments at all levels shall firmly follow the idea of “all innovation is valuable”, practically meet the fundamental requirement to transform the government function and lift service awareness by building a favorable innovation and entrepreneurship environment, launch supportive policies suitable for unique area, and give impetus to the innovation of technological SMEs.
(II) Highlight task implementation. Carefully break down each task, clarify the division of responsibilities and timelines, and continuously implement all tasks with iron-like determination. Evaluate the policy implementation at appropriate time, report work progress and ensure all tasks are implemented correctly.
(III) Conclude and propagate. Monitor the development of technological SMEs according to the national innovation survey, adjust and perfect the policy measures on a timely manner. Conclude the innovation experience of technological SMEs, further propagate the entrepreneurship and major innovation outcomes, and guide more technological SMEs to achieve the innovation-driven development.

Source: Ministry of Science and Technology