Measures of Shanghai Municipality for Supporting Enterprises in Strengthening Basic Research and Enhancing New Drivers for High-Quality Development

These Measures are formulated with a view to accelerating the improvement of the diversified investment mechanism for basic research, further strengthening the dominant role of enterprises in scientific and technological innovation, guiding leading high-tech enterprises to play the roles of "research project initiators", "research project evaluators", and "research project executives", and enhancing enterprises" capabilities in basic research and original innovation in the context of the development of Shanghai's key industries and future industries.

I. Supporting Enterprises in Participating in Basic Research Decision-Making and Consultation

This Municipality shall improve the long-term mechanism for enterprises to participate in scientific decision-making, actively engage outstanding entrepreneurs and strategic investors in the basic research decision-making and consultation process of this Municipality, and shall continuously conduct forward-looking, targeted, and reserve-oriented consulting research. This Municipality shall also increase the proportion of enterprise experts in the expert database for municipal science and technology projects; for basic research projects oriented toward industrial development, it shall adopt more evaluation opinions from enterprises. (Responsible unit: Shanghai Municipal Commission of Science and Technology)

II. Supporting Enterprises and the Government in In-depth Implementation of the Explorer Program

This Municipality shall improve the organizational and implementation mechanism of the Explorer Program, give full play to the guiding role of the government, support enterprises to focus on core fundamental scientific issues and to arrange basic research projects in areas urgently needed for economic and social development and in response to major demands. This Municipality shall attract more enterprises from industries such as integrated circuits, biomedicine, and artificial intelligence to join the Explorer Program, and provide rapid support for urgent and pressing research proposals formulated and put forward by enterprises in key fields. (Responsible unit: Shanghai Municipal Commission of Science and Technology)

III. Supporting Enterprises in Leading In-depth Industry-University-Research (IUR) Cooperation

This Municipality shall support universities established herein to jointly establish university-enterprise collaborative innovation centers with enterprises, where the government and enterprises shall contribute funds at a 1:1 ratio to support universities in conducting application-oriented basic research focusing on key industrial scientific and technological issues. The municipal education and industry competent authorities, together with relevant enterprises and universities, shall implement joint innovation programs in key fields. These programs shall focus on the integration points of enterprises' innovation chains and industrial chains, and pool multi-party resources to promote joint basic research and technology development between enterprises and universities. (Responsible units: Shanghai Municipal Commission of Education, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Commission of Science and Technology, and Shanghai Municipal Bureau of Finance)

IV. Supporting Enterprises in Continuously Increasing Investment in Basic Research

This Municipality shall support enterprises to increase investment in basic research and strengthen technological reserves. For enterprises with an annual investment in basic research of 100 million yuan or more, a one-time financial subsidy of 10 million yuan shall be granted; for those with an annual investment of between 50 million yuan (inclusive) and 100 million yuan (exclusive), a one-time financial subsidy of 5 million yuan shall be granted; and for those with an annual investment between 10 million yuan (inclusive) and 50 million yuan (exclusive), a one-time financial subsidy of 2 million yuan shall be granted. (Responsible Units: Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Bureau of Finance, and all district people's governments)

V. Supporting Enterprises in Establishing Public Welfare Funds for Basic Research

This Municipality shall support enterprises and social forces in establishing public welfare foundations for basic research, and guide and drive the whole society to make donations to support the cause of basic research. For basic research projects supported by public welfare foundations for basic research, co-support from the Municipality shall be provided at 50% of the foundation's investment. This Municipality shall encourage university foundations to expand their funding scope and further strengthen funding for basic research. (Responsible units: Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Bureau of Civil Affairs, Shanghai Municipal State-owned Assets Supervision and Administration Commission, Shanghai Municipal Commission of Education, and Shanghai Municipal Bureau of Finance)

VI. Supporting Enterprises in Using Shared Services for Scientific Instruments and Facilities

This Municipality shall support enterprises in utilizing large-scale scientific instruments and facilities, national major science and technology infrastructure, and other such resources to conduct high-level basic research. For expenses incurred by enterprises in using scientific instruments, facilities, and related services, a subsidy shall be granted at 50% of the actual amount paid by the enterprises, with a maximum annual subsidy of 1 million yuan per enterprise. (Responsible Units: Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Bureau of Finance, Lin-gang Special Area Administration, Pudong New Area People's Government, and other relevant district people's governments)

VII. Providing Tax Incentives for Enterprises Investing in Basic Research

In accordance with relevant provisions of the State, for enterprises' expenditures used to support non-profit research institutions, universities, and government-funded natural science funds in conducting basic research, such expenditures shall be deducted from the taxable income based on the actual amount incurred; furthermore, an additional 100% of the actual amount shall be allowed as a pre-tax deduction. For non-profit research institutions and universities that receive funds for basic research from enterprises, individuals, and other organizations, they shall be exempt from corporate income tax on such funds. (Responsible units: Shanghai Municipal Tax Service, Shanghai Municipal Bureau of Finance, and Shanghai Municipal Commission of Science and Technology)

VIII. Supporting Enterprises in Improving Assessment and Evaluation Systems

For enterprises undertaking the construction tasks of Shanghai Key Laboratories and other similar institutions, this Municipality shall further strengthen the guidance and assessment for basic research, and shall incorporate basic research investment into the construction standards and evaluation system. The proportion of annual basic research investment by construction entities shall account for no less than 10% of total R&D expenditure. This Municipality shall guide state-owned enterprises to focus on their main responsibilities and core businesses, and to proactively make arrangements for basic research. This Municipality shall set up a separate category for basic research expenditure in the annual report forms. Qualified basic research expenditures verified through review may be treated as add back to profits in accordance with relevant provisions. (Responsible units: Shanghai Municipal Commission of Science and Technology, and Shanghai Municipal State-owned Assets Supervision and Administration Commission)

IX. Strengthening Statistical Tracking, Encouragement and Guidance

This Municipality shall strengthen the dynamic tracking of enterprises' basic research activities, guide enterprises to establish relevant statistical ledgers, and standardize the statistical collection of information on enterprises' basic research activities. This Municipality shall publicize and encourage enterprises that have achieved outstanding results and made important contributions in basic research. (Responsible units: Shanghai Municipal Bureau of Statistics, and Shanghai Municipal Commission of Science and Technology)

These Measures shall be effective as of August 1, 2025, and remain valid until July 31, 2030.