Interim Measures of Shanghai Municipality for the Management of Disruptive Technological Innovation Projects

Chapter I General Provisions

Article 1

To further promote the development of disruptive technological innovation and accelerate the building of Shanghai International Science and Technology Innovation Center, the Shanghai Municipality Disruptive Technological Innovation Special Project (hereinafter referred to as the "Special Project") is established, to innovate the organization models and operational mechanisms for scientific and technological breakthroughs, and accelerate the cultivation of disruptive technologies. These Measures are formulated in accordance with the Measures of Shanghai Municipality for the Administration of Science and Technology Planning Projects, and the Measures of Shanghai Municipality for the Administration of Special Funds for Finance-funded Research Projects and with the development laws of disruptive technologies.

Article 2

Disruptive technologies are entirely new technical tracks based on new scientific and technological principles, combinations and applications. They are strategic innovative technologies that promote the reorganization of traditional industrial value networks, decisively affect the upgrading and transition of the social technological system, and realize the restructuring of the existing foundation, capacity and structure of the nation.

This Special Project is established, funded, and organized by Shanghai Municipal Commission of Science and Technology (hereinafter referred to as the "SMCST") using municipal-level financial funds. It is dedicated to serving national strategies and Shanghai’s development and supporting the national disruptive technological innovation. It aims to identify, select, distribute and implement disruptive technological innovation projects in Shanghai and the Yangtze River Delta region, cultivate and reserve projects with potential for disruptive technologies for the nation, promote the transformation and commercialization of the disruptive technological innovation achievements in Shanghai and the Yangtze River Delta region, and thus develop new quality productive forces.

Chapter II Organization and Administration

Article 3

As the competent department in charge of the Special Project, the SMCST has the following main responsibilities:

1. researching and formulating management policies and systems for the Special Project;

2. determining the agency responsible for specific management of the Special Project, and supervising and inspecting its performance of duties;

3. being responsible for making decisions on major matters such as approval and cancellation of projects under the Special Project and the allocation of funds; 

4. and carrying out supervision and inspection of the implementation of the Special Project and evaluating its performance.

Article 4

The Shanghai Center for Disruptive Technological Innovation (hereinafter referred to as the "Center") is entrusted by the SMCST to organize and implement the management of the Special Project, with the main responsibilities as follows:

1. organizing and managing a specialists team for a project to provide whole-process management services for the project including team organization, scheme planning, feasibility study, implementation process, project acceptance inspection and achievements transformation and commercialization, and carry out specific tasks;

2. carrying out specific process management and services for project task implementation and fund use, participating in the coordination and advancement of important matters in project implementation, objectively and promptly reporting major problems discovered in specific management work to the SMCST, and keeping archives of the relevant materials of the project;

3. carrying out the follow-up management after the acceptance inspection of the project;

4. carrying out follow-up management of the project performance and promoting the transfer and transformation of project achievements;

5. assisting in carrying out research in relevant fields of science and technology, as well as studies on development strategies;

6. organizing discussions, training and science popularization relating to the project management, technological research and development, and transformation of achievements;

7. establishing a confidentiality mechanism to carry out the relevant confidentiality work of the project; 

8. and voluntarily accepting the supervision and inspection of the SMCST and relevant departments.

Article 5

The responsibilities of a project undertaking unit are as follows:

1. establishing and improving internal management systems in respect of scientific research, finance and credibility;

2. organizing and submitting the project proposal and project application documents; organizing and implementing the project in accordance with the project contract; ensuring the supporting conditions for project implementation, performing the terms of the contract and completing the main objectives and tasks;

3. promptly reporting as required the progress and major issues arising in the implementation of the project, submitting materials for acceptance inspection, etc.;

4. reporting for approval or record, in accordance with procedures, any matters that need to be adjusted; 

5. and cooperating with the Center to complete the tasks of supervision, evaluation and acceptance inspection.

Chapter III Project Application

Article 6

A project is the basic unit organized and implemented by the Special Project. The Special Project dynamically adjusts its focus areas based on the economic and social development needs, emphasizing cross-disciplinary collaboration and accommodating non-consensus projects, open projects or technology project groups, mainly including the following three aspects:

1. Key technological breakthroughs. Focusing on fields such as integrated circuits, intelligent technology, life health, low-carbon energy, high-end equipment, advanced manufacturing and marine science and technology. Adopting an open approach to discover, regularly select and gradually cultivate various disruptive technologies. Achieving targeted breakthroughs in new technologies, seizing early opportunities, and creating new chances to overcome critical “bottleneck” challenges.

2. Frontier technology cultivation. Focusing on micro-and nano-photonics and sensing, gene and cell control, biosynthetic materials, high-end medical devices, advanced robots, metaverse, block chain and automatic driving. Adopting an open approach to discover and systematically lay out whole industrial chain technologies, creating new technology routes and opening up new arena to realize driving and leading effects.

3. Future technology exploration. Focusing on fields such as trans-scale life analysis, brain science, humanoid and bionic systems, organ medicine, bio-manufacturing, quantum computing and communication, and future energy technologies. Adopting an open approach to discover and systematically lay out multiple technologies, creating brand new technology groups and taking the initiative in innovation.

Article 7

The Special Project shall lay out projects in accordance with a gradient that intensifies breeding, strengthens seedling cultivation and accelerates material cultivation, with the principle of selecting the superior and eliminating the inferior, and converging step by step. It mainly includes three gradients:

1. Early "breeding" technology. It is an early-stage project where the basic research is basically completed but the technology cannot be stably reproduced in the laboratory. The main tasks are to achieve stable reproduction in the laboratory, identify the key factors that determine the success or failure of the technology, and create conditions for pilot-scale development. Each project is funded with 1 or 2 million yuan.

2. Mid-term "seedling cultivation" technology. It is a mid-term project where the basic research has been completed and the technology can be stably reproduced in the laboratory but the key challenges that determine the success or failure of the technology have not yet been overcome. The main tasks are on scaling up the technology in pilot tests, overcoming key challenges, further improving performance, optimizing implementation conditions or reducing costs and thus laying a foundation for trial production and broader application. Each project is funded with 5 or 10 million yuan.

3. Recent "material cultivation" technology. It is a late project where the initial pilot-scale development has been completed and the key challenges that determine the success or failure of the technology have been essentially overcome. It usually has attracted social capital. The main focus is to further optimize the performance or production conditions or improve application support conditions in line with the main needs of the target market. The goal is to basically meet the requirements for large-scale production and extensive application and to prepare the technology for commercialization. Each project is funded with 5 or 10 million yuan.

Article 8

The Special Project emphasizes multi-channel and regular identification of projects, and organizes projects through active planning, targeted identification and extensive solicitation. With the focus on important strategic areas and major application scenarios, the professional expertise and focus areas of the project specialists are combined to discover outstanding talents and potentially disruptive technologies, build competitive teams and plan and organize projects through one-on-one communication and exchange meetings. By relying on top scientists and key R&D institutions, the Special Project recommends potential high-value projects, identifies key technology demands and solicits R&D projects. It also extensively collects projects from the public through open calls and competition selections. This Special Project is not subject to the restrictions on the number of projects imposed by other science and technology projects.

Article 9

A project applicant shall generally be a legal person or an unincorporated organization registered in Shanghai Municipality. The project leader shall be the person who puts forth the main research ideas of the project, is the actual research leader, and has the ability and energy matching the requirements of the project tasks.

Chapter IV Project Selection

Article 10

The Center appoints project specialists to follow up the process of project selection and implementation and work together with the project leader to advance the projects. The project specialists are deeply involved in the project implementation, have a comprehensive understanding of the research progress and organization and management of the project, promptly follow up and coordinate the difficulties and problems encountered in the implementation process, provide timely suggestions for project organization and implementation, and introduce and connect relevant resources. The Center will adopt the organization and implementation, production outcomes, and achievements transformation and commercialization of the project as the main indicators of the project specialists' performance.

Article 11

Projects are selected through project specialists' preliminary screening, expert evaluation and center review. The Center organizes project specialists to conduct the preliminary screening and duplication checks of the collected projects. The project specialists help the applicants to develop project proposals. The Center organizes experts to conduct in-depth evaluations of the project proposals. For high-value projects, project specialists and project leaders shall continuously optimize the project proposals and complete the project application forms through a process of "simultaneous evaluation and improvement". The project specialists will organize professional teams for consultation and improvement of the projects before submitting the projects to the Center, which will, in turn, organize project reviews. Upon approval of the projects, the Center will include the projects as candidate projects in the candidate project pool.

The Center may select candidate projects and include them in the candidate project pool by replacing evaluation with competition such as disruptive technological innovation competition.

Article 12

In accordance with the principles of being "strategy-oriented, scenario-driven and innovation-breakthrough-focused", the Center comprehensively evaluates candidate projects based on a thorough investigation, expert consultation and the projects' potential to empower industries so as to normalize the formation of proposed projects before they are submitted to the SMCST for approval. The project specialists organize the project undertaking units to complete project charters, develop project implementation plans and set assessment milestones. A tripartite contract is signed between the SMCST, the Center and the project undertaking unit to complete the project initiation and allocate project funds.

High-quality projects discovered through selection or formed in the process of cultivation will be recommended by the Center for further support under the "Disruptive Technological Innovation" key special project of the National Key Research and Development Program.

Chapter V Implementation and Management

Article 13

The project is managed with the "milestone" style featuring checkpoint evaluation and dynamic optimization. The project specialists, based on the project milestones, carry out periodic reviews and evaluations and subsequent fund allocation plans, and file them with the Center. Throughout the project implementation process, the project team is supported to continuously optimize the implementation plan aiming for higher objectives, faster progress, earlier transformation and better application outcomes.

Where the progress of a project is too slow and the expected objectives obviously cannot be achieved, the project specialists are supposed to suspend the implementation of the project and report to the Center to reassess the feasibility of the project. Whether the project is allowed to continue, whether its assessment objectives should be adjusted, or whether it should be terminated is based on the reassessment results.

Article 14

Any items that need adjustment or change during the implementation of the project shall be decided by the project specialists and the project undertaking units after their joint research or after an application for change is submitted to the Center. The Center shall report to the SMCST any project adjustments and changes on a regular basis. Such adjustments and changes include, but are not limited to, the following four circumstances:

1. General adjustments only involving cooperating units and participants are filed by the project specialists with the Center;

2. Where there are major adjustments that may affect the implementation of the project such as the change of the project undertaking unit, the change of the project leader, or the disruption of the technical roadmap, the project specialists shall apply to the Center for the change, and the change can be made only after the approval of the Center;

3. If the project cannot be completed on time and needs to be extended, the project specialists need to submit an application for extension to the Center no later than three months before the expiry of the project execution period, and the project may be extended upon approval of the Center; 

4. And the project undertaking unit that has objections to the performance of the project specialists may raise such objections directly to the Center; based on the investigation results, the Center may supervise or replace the project specialists.

Article 15

Where a project is under any of the following circumstances, the project specialists need to file an application for termination of the project with the Center, which may terminate the project upon review, and promptly file with the SMCST:

1. It has been proved in practice that the technical route of the project is not feasible, or the project schedule cannot be met as agreed upon in the contract and there is no way to improve it;

2. The project fails to pass checkpoint evaluation and there are no subsequent remedial measures, or the disruptive value is reduced clearly by the time of the mid-term assessment;

3. The funds, raw materials, personnel or support conditions necessary to complete the project tasks have not been secured or have changed, so that the project cannot proceed normally;

4. The project undertaking unit has seriously violated regulations or disciplines in the implementation of the project, but fails to make rectifications or refuses to make rectifications as required;

5. The project undertaking unit fails to implement the project according to the schedule agreed in the project contract, and continues to delay implementation within the prescribed time limit after being reminded;

6. The project undertaking unit refuses to accept the project supervision and inspection by the Center or the SMCST, or refuses to cooperate with the project specialists in follow-up management, and continues to refuse to do so after being reminded; 

7. Or other circumstances stipulated in the project contract.

Article 16

Where a project is under any of the following circumstances, the Center shall cancel the project after submitting the case to the SMCST for examination and verification:

1. The project undertaking unit forges or fabricates the application materials during the project application phase in order to secure project approval fraudulently;

2. The project undertaking unit forges or fabricates materials during the project implementation phase to interfere with checks or acceptance inspection; 

3. Or other circumstances stipulated by the State and Shanghai Municipality.

Article 17

The project funds are managed through separate accounting and are administered in accordance with the relevant provisions of Shanghai Municipality on special funds for scientific research projects.

Where a project is terminated, the project undertaking unit shall prepare a written report including information such as the completed work, the use of funds, the equipment and instruments purchased, the periodic achievements, the intellectual property rights, etc. Upon verification by the Center, the project undertaking unit should complete the follow-up work including returning the remaining project funds.

Where a project is canceled, the project undertaking unit shall return all the project funds that have been allocated.

For a project that is canceled or terminated, the project funds shall no longer be allocated. Where a project is canceled or terminated due to the subjective fault of the project undertaking unit or the project leader, the Center shall report the case to the SMCST, and record the case on the Shanghai Science and Technology Credit Information Platform.

Chapter VI Acceptance Inspection Achievements Management

Article 18

After the expiration of the project implementation period, the project undertaking unit shall submit materials for acceptance inspection in time. Any unit that fails to submit the acceptance inspection materials to the Center within six months after the expiration of the project implementation period is treated as failure to pass the acceptance inspection.

According to the agreed project objectives and tasks, the Center shall adopt peer review, third-party evaluation and assessment, user evaluation and other methods to carry out the acceptance inspection, and report the inspection results to the SMCST. For projects that have made significant substantial progress in the aspects of transformation and application, the acceptance inspection procedures may be simplified.

Article 19

According to the specific achievements of the project and depending on the project specialists, the Center will provide the project team with guidance for transformation of these achievements and connection of the resources, including but not limited to the in-depth incubation of high-quality incubators and the early involvement of future industry funds, and will report details of the transformation and commercialization of the project achievements to the SMCST on a regular basis.

For a project that has passed the acceptance inspection with satisfactory project completion and high achievement value, its subsequent research may receive further support; for a project that has made considerable progress ahead of time, it may receive further support ahead of schedule.

An agreement should have been made that the project should prioritize transformation and commercialization within Shanghai or the Yangtze River Delta region, and that the district where the project undertaking unit or the transformation and commercialization unit is located should provide a certain percentage of financial support based on the actual investment.

In the case of an approved project that has been included in the "Disruptive Technological Innovation" key projects of the National Key Research and Development Program, which is still in the implementation period and which was not approved in Shanghai in its early stage, or which was newly moved to Shanghai after being approved elsewhere, the district where the project undertaking unit is located should provide a certain percentage of financial support based on the project implementation progress and the amount of approved project funding; in the case of a project that has completed the acceptance inspection and has been transformed and commercialized in Shanghai Municipality, the district where the transformation and commercialization unit is located should provide a certain percentage of financial support based on the actual investment.

Chapter VII Supervision and Administration

Article 20

The SMCST is responsible for supervising the implementation and management of the Special Project. The Centre supervises the organization and implementation of the project, and entrusts a third-party agency to audit or evaluate the project as needed. The supervision mainly includes, but is not limited to the following four aspects:

1. the scientific and standardized nature of the management work carried out by the Center and its staff, as well as their performance in terms of diligence and responsibilities in the project management process;

2. the implementation of the system of the project undertaking unit's primary responsibility, its project implementation, and its management and use of funds;

3. scientific researchers' scientific integrity and performance of duties in their project application, implementation, and fund management and use; 

4. and performance of duties and responsibilities of third-party agencies and their staff members in the process of providing audit and consulting services.

Article 21

Violations discovered in supervision shall be dealt with in the following ways:

1. If the Center or its staff engages in any violations, they shall be subject to a formal inquiry and required to rectify the issue within a specified time frame.

2. If the project undertaking unit or scientific researchers engage in violations, actions shall be taken including a formal inquiry, a requirement to rectify the issue within a specific time frame, suspension of the project funding, recovery of the allocated project funds, termination of the project, and temporary or permanent disqualification for future applications for the Project; 

3. And if any third party engages in violations, the relevant issues and clues may be transferred to the competent departments or trade associations with the authority to impose penalties or take proper actions, based on actual circumstances.

Any research integrity breaches shall be recorded on the Shanghai Science and Technology Credit Information Platform in accordance with the Measures of Shanghai Municipality for Investigation and Handling of Research Integrity Breaches. Any violation of relevant laws, rules or regulations shall be punished in accordance with applicable provisions.

Article 22

An exemption mechanism shall be established that is characterized by encouraging innovation, tolerating failure and controlling risks to the maximum extent. Where scientific researchers have fulfilled their diligence and responsibility obligations and have not engaged in any conduct in violation of laws, rules or regulations, but are indeed unable to achieve the expected goals due to the strong exploratory nature of the technology, the relevant responsible parties may be exempted from liability.

Chapter VIII Supplementary Provisions

Article 23

Projects involving secrets or national security and major interests shall be subject to the relevant confidentiality provisions of the State.

Article 24

These Measures shall be effective as of July 1, 2024, and remain valid until June 30, 2026.