Support Measures for Scientific Research, Innovation and Startups in the Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone

1. Introduction

1.1 Purpose

1.1.1 The currentSupport Measures for Scientific Research, Innovation and Startups in the Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as“the Support Measures”) are formulated to back scientific research and commercialization of research conducted within the Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as“the Shenzhen Park”), by providing necessary safeguards and supporting services as well as creating a positive environment for scientific innovation, so as to help transform the Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as“the Cooperation Zone”) into a high-level and comprehensive national science center, a global leader in basic and applied basic research, and a source of scientific innovation. 

1.2  Eligibility Criteria

1.2.1 TheSupport Measures are applicable to all top-level foreign individuals and organizations such as scientific research institutes, R&D enterprises and scientific research commercialization/incubation platforms, as well as their peers in Hong Kong, Taiwan and Macao, provided they are focusing on either cutting-edge scientific breakthroughs or the six key scientific research fields the Shenzhen Park is engaged in, namely, medical technology, big data and AI, robotics, new materials, microelectronics, and fintech. 

The Chinese mainland organizations and individuals within the Shenzhen Park are also entitled to similar support as long as they are engaged in scientific research either in cooperation with Hong Kong, Macao and Taiwan or of a global nature. 

1.2.2 The applicant for theSupport Measures must be an independent legal entity duly registered with the Shenzhen Park, or a scientific research body enjoying relative personnel and financial autonomy and established by an independent legal entity within the Shenzhen Park.

1.2.3 The scientific and technological talents recruited by and contracted with any organization or team funded by the Shenzhen Park are eligible to apply for various kinds of talent support measures enacted by the Shenzhen Park.

1.3 Budgetary Funds

1.3.1 Budgeting in support of the scientific research, innovation and startups within the Shenzhen Park shall be carried out by the government at both municipal and district levels on a yearly basis. The budgetary funds for the next fiscal year shall be allocated based on the actual spending in the current year.

Concrete measures for the use and management of such funds shall be formulated separately by the district finance department and submitted to the municipal finance department for record. 

The Shenzhen Steering Group Office for Development of Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as“the Office”) is the responsible body for the management of the municipal and district fiscal funds, and therefore shall carry out performance evaluation on a regular basis in accordance with established provisions. 

1.4 Shenzhen Park R&D Management Authority

1.4.1 The Shenzhen Steering Group for Development of Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as“the Steering Group”) shall authorize the Office to set up the Shenzhen Park R&D Management Authority (hereinafter referred to as“the Management Authority”)and beresponsible for the allocation and supervision of the scientific research funds,and coordination of the day-to-day management services to the scientific research institutes, teams and projects in the Shenzhen Park.

1.5 Project Review Organization

1.5.1 A third-party project review organization (hereinafter referred to as“the Third-party Organization”) shall be introduced into the Shenzhen Park and entrusted by the Management Authority with the right to evaluate and manage relevant scientific research projects. The Third-party Organization shall have board of directors composed of science and technology experts, heads of scientific research institutes, and business and government representatives from Hong Kong, Macao, the Chinese mainland, and other regions.

1.5.2 A series of academic committees on specific science subjects (hereafter referred to as“the Academic Committees”) shall be set up under the Third-party Organization, with their chairpersons appointed by the Third-party Organization, and members composed of professors and CTOs specialized in different areas of scientific research. The Academic Committees, whose members will be renewed every year, shall bear the responsibilities of reviewing scientific research projects, assessing research achievements, and providing the Third-party Organization with professional opinions. 

1.5.3 The organizational structure and operational management measures of the Third-party Organization shall be formulated separately by the Management Authority.

1.6 Application Method

1.6.1 Any party fulfilling the requirement ofClause1.2 is eligible to submit the application to the Management Authority based on the Implementation Rules of the Support  Measures.

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2 Application for and Management of the Scientific Research Projects

2.1 Common Procedures

2.1.1 Self-declared Project Application

2.1.1.1 In view of the key scientific research fields of the Shenzhen Park, research institutes and R&D enterprises could choose their research direction and content independently for the project application. The application process encourages conceptual research topics. The Academic Committees shall hold peer reviews to decide the approval or otherwise of the project.

2.1.2 Project Undertaking Application

2.1.2.1 Scientific Research Topic Solicitation and Disclosure: The Management Authority shall send out official letters to the primary R&D enterprises annually to solicit research topics of great scientific significance or of considerable challenges in the engineering field.

The solicitation contents may include the title, subject, key words and description of the topics, as well as background, importance and latest development.

The Academic Committees shall deliberate, refine and convert the solicitation information into basic or applied basic research projects, and thereafter disclose to the public. 

2.1.2.2 Project Undertaking:Based on their own conditions and research interests, scientific researchers can express to the Management Authority their willingness of undertaking specific research projects by submittingProject Undertaking Plans (Project Applications) in accordance with relevant requirements, 

as long as they meet the following conditions:

(a) They are scientific research institutes or R&D enterprises duly registered with the Shenzhen Park; or otherwise,

(b) They are research institutes, R&D enterprises, or scientific research teams that have not yet registered in the Shenzhen Park but committed themselves to completing their registration and physical presence in the Shenzhen Park within one (1) year after being selected as the project undertaker. 

2.1.2.3 Confirmation of Project Requirements: The Academic Committees shall select the project undertaker through the peer-reviewed approach. Afterwards, the selected leader shall communicate with the demand side to confirm the detailed requirements, and then reach a consensus.

2.1.2.4 Pattern of Sponsorship: A tripartite agreement shall be therefore signed by and among the demand side, the project undertaker, and the Management Authority. The project funds offered by the Shenzhen Park shall be disbursed in installments based on the agreement, actual capital injection and project progress. In addition, other policies of theSupport Measures will remain applicable to the selected project. Specific management measures shall be formulated separately by the Shenzhen Park.

2.1.3 Project Manager Scheme

2.1.3.1 The project manager scheme is adopted in the Shenzhen Park.

Applicant organizations or teams are required to designate a project manager as the primary person responsible for the scientific research.  

The designated project manager shall have sufficient autonomy in choosing scientific research content, establishing project teams, and carrying out implementation plans. 

The Academic Committees will take the project requirements and actual competencies of the project managers and their teams, including their credibility and previous project experience, as important factors for project review and team selection. 

2.1.4 Project Review Scheme

2.1.4.1 A peer-review scheme will be introduced for both the self-declared and the undertaken scientific research projects in the Shenzhen Park. 

The Academic Committees shall hold the peer reviews as per scientific discipline, and in principle, shall invite the experts active in the front line of scientific research to participate in the project review. International peer reviews could be arranged in some research fields. In any scientific research field or direction, only the best project application will be considered for financial support.

2.1.5 Progress Evaluation and Project Elimination Scheme

2.1.5.1 Regular Evaluation: The selected team shall submit progress reports on a regular basis to the Academic Committees for regular evaluations. In principle, all the selected projects shall be evaluated every year. The evaluation results will decide whether a project shall be continued or eliminated. 

An eliminated project shall be closed ahead of the prescribed schedule and no further supporting fund shall be disbursed thereafter.

2.1.5.2 Closing Assessment: After a selected project concludes, the team shall submit project closing files to the Academic Committees in a timely manner. The Academic Committees then shall organize a third-party professional organization to conduct the closing assessment. Different categories of evaluation criteria systems and evaluation procedural norms shall be established for different types of research projects.

Generally speaking, cutting-edge basic research projects shall be evaluated on their originality; while applied basic research projects shall be assessed on the commercialization of the research achievements. 

2.1.5.3 Supervision and Discipline Scheme: The results of the regular evaluation and closing assessments shall be entered into the performance records of the project managers as factors to be considered in subsequent project reviews and evaluations. 

Individuals and organizations with severe credibility issues arising from the research projects shall be blacklisted and dealt with in accordance with relevant laws and regulations. 

2.1.6 Project Funds Management Scheme 

2.1.6.1 Granting Authority to Use Project Funds: The full authority over the use of project funds shall be granted to the scientific research institutes and R&D enterprises, in terms of fund allocation, method of utilization, and expenditure criteria, all of which shall be managed by the project manager.

The use of scientific research funds shall be confined within the sphere of scientific research activities, details of which may be adjusted according to the needs of the project. Workforce remuneration shall be permitted, and its proportion shall be determined based on the actual requirements of the project.

2.1.6.2 Retention and Use of Surplus Fund by Project Implementing Party: After the scientific research project achieves its intended goal and passes the inspection for acceptance on a one-off basis, the surplus fund and interest thereof shall be retained by the project implementing organization to cover direct expenses of scientific research. 

2.1.6.3 Establishing a Green Channel for Fund Disbursement: Efforts shall be made to simplify the procedures for research fund disbursement and the requirements on invoices and evidence, so as to improve the efficiency of fund disbursement. 

2.1.7 Intellectual Property Ownership Scheme

2.1.7.1 The scientific research results achieved through the funds allocated by the Shenzhen Park, and not involving national security, national interest, or major public interest, shall be owned by the organizations implementing the projects. 

If an organization operating a project intends to obtain the exclusive license of the project or transfer the ownership ofscience research achievements to others, it must apply in advance to the Management Authority for approval.

2.1.7.2 An incentive scheme on the commercialization of scientific research achievements shall be formulated, and the proceeds from research achievement’s commercialization shall be fully owned by the project implementing organization. Individuals who make major contributions to the completion and commercialization of the scientific research results shall be remunerated at least70% of the total proceeds. 

If previously agreed, it shall be executed as agreed.

2.2 Summary Procedures

2.2.1  Government-Enterprise Joint Operation Mechanism

2.2.1.1 Eligibility Criteria:Scientific research institutes involved in basic research, applied basic research or technology development projects, and having secured investment from enterprises.

2.2.1.2 Project Establishment Scheme: The project shall be established through the filing for record approach, therefore shall be exempt from the project review.

After a research project is established, the Academic Committees shall, based on the project agreement, provide research projects with financial support of different proportions based on the project attributes and the purpose of investment by enterprises.

2.2.1.3 Pattern of Sponsorship: The Management Authority shall provide established projects with financial support after considering the investment made by enterprises, with an upper limit of1:1. Moreover, the supporting funds shall be disbursed at a similar pace as the companies make their contributions.  

2.2.1.4 Follow-up Management: For the projects running under the Government-Enterprise Joint Operation Mechanism, the follow-up management of project evaluation, elimination and intellectual property ownership shall be implemented in accordance with the agreements between the research organizations and the enterprise investors. The execution of such agreements shall be reported to the Management Authority. 

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3. In Support of Building up International Basic and Applied Basic Research Centers

3.1 International Basic and Applied Basic Research Organization Development Program 

3.1.1 Eligibility Criteria: The basic research institutes duly registered with the Shenzhen Park or independent legal persons that have funded basic research organizations in the Shenzhen Park. 

The basic research organizations refer to those non-profit research bodies that aim to develop themselves into world-class research organizations by making efforts on the scientific frontier breakthroughs or by conducting basic and applied basic research in the key fields the Shenzhen Park is engaged in.

3.1.2 Support Measures: To the high-level research institutes that have been established and invested by well-known foreign and domestic scientific research organizations or R&D enterprises, but not yet supported by any government at higher levels, an initial financial support, capped at RMB100 million, could be granted, provided that the project review organization of the Shenzhen Park deems it necessary.

The financial support shall be used for the development of research equipment and platform, workforce remuneration, and research project expenses.

3.2 Basic and Applied Basic Research Project Financial Support Program

3.2.1 Eligibility Criteria: Scientific research organizations or R&D enterprises duly registered with the Shenzhen Park and possessing basic or applied basic research capabilities. 

3.2.2 Support Measures: Independent basic or applied basic research projects will be supported by this program. Once approved by the project review organization of the Shenzhen Park, a research project could be provided with financial support of up to50% of the total R&D investment, or in an amount capped at RMB50 million. 

3.3“RMB10 Billion+” Fund for Excellent Research Support Program 

3.3.1 Eligibility Criteria:Scientific research institutes or R&D enterprises duly registered with the Shenzhen Park and possessing basic or applied basic research capabilities.

3.3.2 Support Measures: A“RMB10 Billion+” Fund for Excellent Research Program will be set up by different parties under the coordination of the ShenzhenMunicipalGovernment and FutianDistrictGovernment to focally provide financial support to the basic or applied basic research plans to be implemented in the Shenzhen Park.

The fund will accept applications once a year; and support no more than10 priority projects every year.

Measures for management of this fund shall be formulated separately. 

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4. Supporting the Development and Application of New Technologies and Products

4.1 Technology Innovation Platform Development Program

4.1.1 Eligibility Criteria: Technology innovation platforms duly registered with the Shenzhen Park or independent legal persons that have set up technology innovation platforms in the Shenzhen Park.

The technology innovation platforms refer to the R&D platforms that cater to the needs of national or industrial development, aim to enhance their own innovation capabilities and core competencies in industry, and therefore engage in the R&D of cutting-edge or key common technologies, the research of engineering technologies, the provision of resources opening, sharing and public services, and the transfer and commercialization of technologies, among others, in such areas as medical science and technology, big data and artificial intelligence, robotics, new materials, and micro-electronics. 

4.1.2 Support Measures: High-end technological innovation platforms jointly developed by scientific research organizations or technology enterprises at home or abroad will be supported, provided that they are built to deepen the integration of industry, education and research. Once approved by the project review organization of the Shenzhen Park, a project will be granted a supporting fund at a rate of20% of its total investment in the platform development or in an amount capped at RMB10 million on a yearly basis and for a period of no more than three (3) consecutive years.

The supporting funds shall be used for the scientific research equipment and platform development and workforce remuneration.

4.2 New Product Trial Use Support Program

4.2.1 Eligibility Criteria: Scientific research institutes, R&D enterprises or research achievement commercialization or incubation platforms duly registered with the Shenzhen Park and capable of industrializing and marketing their research achievements.

4.2.2 Support Measures: To any party eligible for this program, after its new product with key technology of own intellectual property is launched on market, a supporting fund equivalent to30% of the value of the first sales contract will be granted, with a ceiling of RMB2 billion and a floor of RMB200,000 for a single contract. 

4.3 Midstream (Pilot Scale Trial) Support Program

4.3.1 Eligibility Criteria: R&D enterprises or scientific research achievement commercialization/incubation platforms duly registered with the Shenzhen Park. 

The innovation and pilot scale trial fund is mainly made up of social capitals, with the government guiding fund as a minor shareholder. The aim of the fund is to support technology innovation and scientific research achievement commercialization/incubation in the Shenzhen Park, and raise the interest of social capitals to invest in the Park. 

4.3.2 Support Measures: For the funds with contribution from Futian District Government’s guiding funds, the re-investment ratio could be lowered if the re-investment is conducted in the Shenzhen Park. 

As to those projects in the Shenzhen Park, in principle, the guiding funds will merely collect proceeds equal to the interest of the re-investment amount at the lending rate in effect for the same time period, and then leave the rest part of the capital gains to the fund management organization.

The guiding funds will not waive interest with respect to projects out of the Shenzhen Park. 

4.4 Overseas Patent Portfolio Planning Support Program 

4.4.1 Eligibility Criteria: Scientific research institutes, R&D enterprises and scientific research achievement commercialization/incubation platforms in possession of overseas patent and duly registered with the Shenzhen Park.

4.4.2 Support Measures: Any invention patent that was granted overseas shall be offered a patent annuity subsidy up to50% of the actual annuity for six (6) consecutive years since the date of patent granting. 

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5.1 R&D Enterprise Incubator Development Support Program

5.1.1 Eligibility Criteria: The organizations that have set up R&D enterprise incubators in the Shenzhen Park. 

The R&D enterprise incubators refer to the innovation-and-startup-service platforms invested by world-renowned universities/colleges or scientific research organizations with the primary goal to foster startup R&D enterprises by providing office spaces and incubation services.

5.1.2 Support Measures: After a R&D incubator project is fully developed, the operating organization of the incubator could apply to the Administration Organization for financial support. Upon the approval of the Administration Organization, a supporting fund amounting to50% of the total investment in the incubator development could be granted, with a ceiling of RMB10 million. 

5.2 R&D Enterprise Office Space Support Program 

5.2.1 Eligibility Criteria: The R&D enterprises duly registered with the Shenzhen Park and operated in the innovation-and-incubation-service platforms officially accepted in accordance with theProvisional Measures of Futian District for Identifying and Managing Tech Industry Parks (Incubators). 

5.2.2 Support Measures: Once approved by the Management Authority, a rental subsidy will be offered to the R&D enterprise as per the standard of RMB50 per square meter per month, with a ceiling of1,000 square meters in space floor and36 months in time duration.

5.3 Legal Services Support Program for Intellectual Property Rights 

5.3.1 Eligibility Criteria: The international organizations or institutions duly registered with the Shenzhen Park as independent legal persons to provide intellectual property legal service.

5.3.2 Support Measures: A lump sum subsidy of RMB1 million will be offered to any national or international first-class organization established in the Shenzhen Park and dedicated to providing intellectual property-related arbitration, mediation, litigation and other legal services.

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6. Enhancing Scientific Research Team Development

6.1 Young Scientists Fostering Program

6.1.1 Eligibility Criteria: Young R&D fellows such as doctoral candidates or post-doctoral researchers aged40 or below, who are engaged in research at scientific research institutes, R&D enterprises or scientific research achievement commercialization/incubation platforms in the Shenzhen Park. 

6.1.2 Support Measures: A special fund of RMB100 million will be raised to provide support and basic guarantee for the young scientific researchers conducting academic activities in the Shenzhen Park. 

The funds could be used to cover costs of equipment, materials, tests, assays and processing, travels, conferences, as well as expenses in publishing, literature, information, and intellectual property affairs, etc. 

Each approved project is subject to a financial support floor of RMB1 million and a ceiling of RMB5 million for a period of no more than three (3) years.

6.1.3 In addition to this special program, young researchers can apply for other supporting programs of the Shenzhen Park at the same time. 

6.2 Top Scientists Award Program

6.2.1 Eligibility Criteria: The researchers having scored great achievements at scientific research institutes, R&D enterprises or scientific research achievement commercialization/incubation platforms in the Shenzhen Park.

6.2.2 Support Measures: A maximum of RMB10 million in reward will be offered to each scientific researcher who wins the highest-level international awards such as the Nobel Prize, the Turing Award, the Fields Medal, the Eugenio Balzan Prize, the Croft Prize and the Wolf Prize, or the Highest Science and Technology Award of China and other national science and technology awards, provided that the awardee has conducted the research in the Shenzhen Park. 

6.3 Research Teams Incentive Program 

6.3.1 Eligibility Criteria: The core members of technology teams that undertake major research projects at scientific research institutes, R&D businesses or scientific research achievement commercialization/incubation platforms in the Shenzhen Park.

6.3.2 Support Measures: The leaders and other core members of teams undertaking major research projects can be recognized as high-level talents of Shenzhen City and given corresponding rewards and subsidies. 

Winners of the rewards do not need to have participated in the social security scheme or have paid personal income taxes in Shenzhen; a certificate of employment and contributions issued by their employers will suffice to make them eligible for such rewards. 

6.4 Talents Joint Fostering Program

6.4.1 Eligibility Criteria: Full-time master’s candidates, doctoral candidates or post-doctoral researchers of Hong Kong-based universities/colleges who conduct scientific research in the Shenzhen Park, as well as the full-time master’s candidates, doctoral candidates or post-doctoral researchers who conduct research at the scientific research institutes duly registered with the Shenzhen Park.

6.4.2 Support Measures: The research master’s or doctoral candidates of Hong Kong-based universities/colleges who conduct research at the scientific research institutes or laboratories of such universities/colleges within the Shenzhen Park will be, according to actual hours of work, given a living allowance amounting to50% of that offered by their schools and a special academic subsidy of RMB10,000 per person per year, provided that they have worked for at least four (4) months in the Shenzhen Park in one year. 

Post-doctoral researchers of Hong Kong-based universities/colleges who conduct research at the scientific research institutes or laboratories of such universities/colleges within the Shenzhen Park will be, according to actual hours of work, given a living allowance amounting to50% of that offered by the Innovation and Technology Fund of the Hong Kong Government, provided that they have worked for at least one (1) month in the Shenzhen Park in one year. 

Full-time master’s or doctoral candidates of scientific research organizations registered in Shenzhen who conduct research in the Shenzhen Park will be given a special academic subsidy of RMB10,000 per person per year, provided that they have worked for six (6) months in the Shenzhen Park in one year. 

Full-time post-doctoral candidates of scientific research organizations registered in Shenzhen who conduct research in the Shenzhen Park will be given a special academic subsidy of RMB30,000 per person per year, provided that they have worked for two (2) months in the Shenzhen Park in one year. 

6.5 Cooperation Zone Housing Program 

6.5.1 Eligibility Criteria: Researchers and managers working in the Shenzhen Park 

6.5.2 Support Measures: The“Shenzhen-Hong Kong Housing for Researchers” program will be developed for researchers and management personnel working in the Cooperation Zone. Cultural, sports and recreational amenities as well as Hong Kong-style public services will be provided for Hong Kong and international researchers working and living in the Shenzhen Park.

For those who do not reside in such housing, a rental subsidy will be provided based on Shenzhen’s rental subsidy standard for talents.