The Administrative Measures for Funds Dedicated to Enhancing Innovation Capacities of Enterprises in Zhongguancun National Independent Innovation Demonstration Zone (Trial)(Trial) (Jing Ke Fa [2022] No. 5) (hereinafter referred to as the Measures) was published recently. The interpretation follows below.

I. Context of Revision

Following the Opinions of State Council on Promoting High-Quality Development of National High-Tech Industrial Development Zones (Guo Fa [2020] No. 7) and the Development Plan for Zhongguancun National Innovation Demonstration Zone during 14th Five-Year Period (Zhong Shi Qu Zu Fa [2021] No. 1), among other instructions, the Measures was reviewed with the aim of continuously promoting pilot reforms in Zhongguancun to achieve greater scientific and technological self-reliance and might, enhancing the capacities of enterprises for technological innovation, cultivating world-class enterprises, and supporting the building of Zhongguancun into a globally-leading hub for science and innovation.

II. Scope of Application

The Measures applies to national high-tech enterprises registered in Zhongguancun, certified Zhongguancun high-tech enterprises, small and medium-sized Zhongguancun high-tech enterprises recognized following assessment, institutions of higher education, scientific research institutes, and other innovative entities. The Measures also applies to innovative entities that are registered in Beijing's other regions and meet the requirements for receiving support.

III. Focuses

The major categories of entities to receive support as per the Measures are as follows.

1. Micro and small-sized technology enterprises in the relevant high-end, precision, and sophisticated industries as well as enterprises that have won awards in the relevant competitions will be supported. They will be encouraged to increase investment in research and development (R&D), strive to achieve breakthroughs in the innovation of key technologies, and constantly improve their innovative might and core competencies.

2. High-quality hard and core technology start-ups excelling in cutting-edge technologies on an international level will be identified and nurtured. They will be supported to conduct R&D, commercialization and industrialization of cutting-edge original technologies to cultivate more innovative enterprises with global influence.

3. Small and medium-sized national high-tech enterprises with stronger high-tech competencies and significant prospects for growth will be encouraged to develop capacities for continuous innovation in an accelerated manner, deliver the benefits of economies of scale, and drive the high-quality development of Beijing. All administrative districts in Beijing and Beijing Economic-Technological Development Area shall be responsible for the identification and recommendation of the eligible national high-tech enterprises in their respective jurisdictions, to compile a unified list of micro and small-sized enterprises (MSEs) to be developed into enterprises above designated size on the basis of the recommendations and receive support.

4. Enterprises in the fields of new-generation information technology, medicine and healthcare, and new materials will be supported in conducting disruptive technological innovation independently or in collaboration with universities, colleges, scientific research institutes or other enterprises, and promote the commercialization of the innovation outcomes in Beijing.

5. Industry leaders and eligible unicorns will be encouraged to play leading roles in, through open bidding, selecting partners (organizations and teams) and establishing innovation consortiums that require the collaboration of industries, academia, and research institutes, and the cooperation between upstream and downstream enterprises, to collaborate to tackle technical challenges and improve the industry chains and supply chains.

6. Industry leaders and eligible unicorns will be encouraged to play leading roles in establishing centers for technological innovation in collaboration with universities and colleges, scientific research institutes, and upstream and downstream small and medium-sized enterprises (SMEs) throughout the industrial chain, to facilitate R&D and demonstrative application of generic key technologies, establish and safeguard intellectual property rights, attract talented professionals in technological innovation, and drive innovation in institutions and mechanisms.

7. The existing gaps in key fields will be bridged to promote the pioneering application of technologies and products that fill the gap domestically and internationally (known collectively as "pioneering products").

8. The implementation of the premium subsidy system in the market promotion of the first units (sets) of major technological equipment will be facilitated and the Beijing-based entities dedicated to R&D and manufacturing of the first units (sets) of major technological equipment will receive premium subsidies. The application of such equipment on the market will also be promoted.

9. Focusing on the major social and economic development goals of Beijing and the industries and sectors crucial to national development and the well-being of the people, the projects featuring the development of application scenarios in Beijing, which are characterized by a remarkable level of technological innovation, occupy a fundamental role in propelling industrial growth, and exhibit strong demonstration effects, will receive support.

IV. Featured Highlights

(I) Support micro, small and medium-sized technology enterprises for spearheading innovation of key technologies

Financial support will be offered to technology-oriented micro and small enterprises as they carry out research, development, and innovation in key technologies related to high-end, precision, and sophisticated industries. Simultaneously, financial resources will be channeled to projects winning awards in the China Innovation & Entrepreneurship Competition (Beijing Division), China Innovation Challenge (Beijing Division) and Zhongguancun International Frontier Science and Technology Innovation Competition.

(II) Support the cultivation of enterprises engaging in frontier technologies

Support will be offered to high-tech startups that have been registered for or within five years (or no more than seven years for those in the biomedicine sector) and have distinguished themselves in cutting-edge technologies on an international level. Eligible enterprises will receive special funds and industry-wide "accompanying" services to foster continued growth in Beijing and be cultivated into more competitive technology unicorns.

(III) Support the growth and development of MSEs to reach the designated size

Establish a unified service system for high-tech enterprise cultivation across Beijing and provide financial support to empower small and medium-sized high-tech enterprises with significant prospects to increase their capacity for sustained innovation and achieve the benefits of economies of scale, so as to cultivate them into a driving force for the high-quality economic development of Beijing.

(IV) Support enterprises to conduct disruptive technological innovation

Mechanisms will be established for identifying, selecting, and cultivating enterprises focusing on original innovation and cutting-edge technologies to support the development of disruptive technologies. Sound fault tolerance, error correction systems, and scientific and rational regulation and service systems will be established to create a failure-tolerant atmosphere conducive to innovation.

(V) Support enterprises to establish centers of technological innovation

Financial support will be provided to establish centers for technological innovation that will operate as independent legal entities or with an independent accounting system with the aim to facilitate R&D and demonstrative applications of generic technologies, create and safeguard intellectual property rights, attract talented professionals in technological innovation, and drive institutional and mechanism innovation.

(VI) Support market promotion and application scenario demonstration of new technologies and products

Application scenarios will help drive the pioneering production, trial and use of underlying technologies and key core technologies, thereby providing early testing environments and application scenarios for new technologies and products, accelerating the demonstrative applications of key technological products such as pioneering products and the first unit of major technological equipment in their early stages of marketing, and promoting technological iteration, innovation and industrialization.

V. Application Guidelines

Enterprises seeking funds to enhance their capacity for innovation are asked to review the notices issued by the Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee. The information below outlines application timelines and how to apply.

(I) Application timelines

Application timelines are subject to the notices issued by the Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee.

(II) How to apply

Those wishing to apply may do so either exclusively online or by combining online and offline.

(III) The application process

The procedures for applying for funds are subject to the notices issued by the Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee, with the general steps as follows:

1. The online application form. Applicants submit an application via the Beijing Municipal Integrated Management System for Technological Projects in accordance with the notice on the application of the year.

2. Review and approval. The Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee assess the projects submitted and develop support plans based on assessment results.

3. The announcement of results. The Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee announce the projects that will receive support, with the exception of those projects classified as confidential or prohibited from public disclosure by law, on their official website for a period of five working days.

4. The signing of agreements or assignments. The Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee sign agreement with eligible organizations for projects that have been publicly announced without objections. For projects receiving a subsidy in advance, an assignment must be signed to define the project scope and key performance indicators.

5. The allocation of funds. The Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee allocate funds in accordance with the relevant provisions and oversee project implementation in accordance with the agreement and assignment.

6. Project acceptance. For projects receiving a subsidy in advance, acceptance work should be completed within three months after the end of the project implementation. Project changes, delays, terminations and other matters are handled in accordance with the relevant provisions of the Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee.

VI. FAQs

1. Can I apply for the funds if my company was not registered in the Zhongguancun Demonstration Zone?

Innovative enterprises registered in other areas of Beijing can also apply for funding providing they meet the requirements set out in the Measures.

2. Can I apply for more than one project at the same time?

The Measures will not support any applicant enterprise with the same project and content that have obtained municipal government funds via other channels.