Notice from the Shanghai Municipal People’s Government Office on Issuing “Several Measures to Support Enterprises in Strengthening Basic Research and Enhancing New Drivers for High-Quality Development”

To all district people’s governments, municipal government commissions, offices, bureaus, and relevant units:

“Several Measures to Support Enterprises in Strengthening Basic Research and Enhancing New Drivers for High-Quality Development” has been approved by the municipal government and is hereby issued to you. Please ensure careful implementation.

Several Measures to Support Enterprises in Strengthening Basic Research and Enhancing New Drivers for High-Quality Development

To accelerate the establishment of a diversified investment mechanism for basic research, further strengthen the role of enterprises as key players in technological innovation, guide leading technology enterprises to act as “problem posers,” “evaluators,” and “solvers,” and enhance enterprises’ capabilities in basic research and original innovation for Shanghai’s key and future industries, the following measures are formulated.

1. Support Enterprise Participation in Basic Research Decision-Making Consultations. Improve the long-term mechanism for enterprises to participate in scientific decision-making, actively attract outstanding entrepreneurs and strategic investors to participate in municipal-level basic research decision-making consultations, and conduct forward-looking, targeted, and preparatory research. Increase the proportion of enterprise experts in the municipal science and technology project expert database, and prioritize enterprise evaluations for basic research projects targeting industrial development.

2. Support Enterprises and the Government in Deepening the “Explorer Program.” Refine the implementation mechanism of the “Explorer Program,” leverage government guidance, and support enterprises in addressing urgent economic and social development needs by focusing on fundamental scientific issues and initiating basic research projects. Encourage more enterprises in integrated circuits, biopharmaceuticals, artificial intelligence, and other key industries to join the “Explorer Program,” and provide rapid support for urgent proposals from enterprises in critical fields.

3. Support Enterprises in Leading Industry-Academia-Research Collaboration. Support local universities in partnering with enterprises to establish collaborative innovation centers, with government and enterprises co-investing in a 1:1 ratio to address key scientific and technological challenges in industries through application-oriented basic research. Municipal education and industry authorities, along with relevant enterprises and universities, will implement joint innovation plans in key areas, focusing on the intersection of enterprise innovation and industrial chains, and pooling resources to advance collaborative basic research and technology development.

4. Support Enterprises in Increasing Basic Research Investment. Encourage enterprises to boost basic research funding and strengthen technological reserves. Enterprises investing ≥100 million yuan/year will receive a one-time fiscal subsidy of 10 million yuan; those investing 50–100 million yuan/year will receive 5 million yuan; and those investing 10–50 million yuan/year will receive 2 million yuan.

5. Support Enterprises in Establishing Basic Research Public Welfare Funds. Encourage enterprises and social forces to set up public welfare foundations for basic research, fostering broader societal donations. Projects supported by such foundations will receive co-funding equal to 50% of the foundation’s contribution. Universities are encouraged to expand funding directions to further support basic research.

6. Support Enterprises in Utilizing Shared Scientific Instrumentation Services. Facilitate enterprises’ access to large-scale scientific instruments and national major science infrastructure for high-level basic research. Subsidies will cover 50% of usage fees, capped at 1 million yuan per enterprise annually.

7. Tax Incentives for Enterprise Investment in Basic Research. In accordance with national regulations, enterprises supporting non-profit research institutions, universities, and government natural science funds for basic research may deduct such expenditures from taxable income at 100% of the actual amount. Funds received by non-profit research institutions and universities for basic research are exempt from corporate income tax.

8. Support Enterprises in Refining Evaluation Systems. Enterprises undertaking municipal key laboratory projects must allocate ≥10% of annual R&D expenditure to basic research, which will be included in assessment criteria. State-owned enterprises are encouraged to prioritize basic research. Eligible basic research expenditures may be counted as profit in financial reports.

9. Strengthen Statistical Monitoring and Encouragement. Enhance tracking of enterprise basic research activities, guide enterprises in maintaining statistical records, and standardize data collection. Publicize and commend enterprises achieving outstanding results in basic research.