Shanghai is intensifying its focus on fundamental research, rolling out new policies and financial incentives to encourage corporate investment and drive technological innovation.

Taking effect on Aug 1, these initiatives include direct financial subsidies for companies investing in basic research, systemic support for research expenses, and encourage the establishment of philanthropic foundations, marking a shift towards a more diversified funding model for basic research in Shanghai.

Under the new measures, enterprises investing 100 million yuan ($13.92 million) or more annually in basic research are eligible for a one-time subsidy of 10 million yuan.

Those investing between 50 million yuan (inclusive) and 100 million yuan (exclusive) may receive a subsidy of 5 million yuan, while those investing between 10 million yuan (inclusive) and 50 million yuan (exclusive) may receive a subsidy of 2 million yuan.

Beyond direct financial support, Shanghai is also incorporating basic research investment into the assessment criteria for companies establishing Shanghai key laboratories. These companies must allocate at least 10 percent of their total research and development expenditure to basic research.

Moreover, subsidies are available for research expenses related to the utilization of large-scale scientific instruments and facilities, reimbursing up to 50 percent of the actual costs, with a maximum of 1 million yuan per enterprise annually.

A core component of Shanghai's strategy is the Explorers Program, launched in 2021. It encourages companies to identify scientific challenges that are hindering their technological progress and invites researchers to propose solutions. Funding and management are shared between the participating companies and the Shanghai Municipal Commission of Science and Technology.

The Explorers Program currently involves 22 companies, spanning central State-owned, municipal State-owned, private, and foreign-owned enterprises. One successful example is Shanghai United Imaging Healthcare's breakthrough in the clinical application of domestically produced photon-counting CT.

Hu Peng, president of United Imaging Research Institute, said that basic research has become increasingly important for companies to achieve innovation breakthroughs by making fundamental discoveries.

He said Shanghai's policy will encourage companies to invest more in fundamental research.

The program facilitated collaboration between United Imaging and ShanghaiTech University, with researcher Lai Xiaochun leading a team studying the dynamic response mechanism of semiconductor detectors under high beam flux.

"Photon-counting CT can take clearer color photos with a lower radiation dose," Lai explained.

This collaboration resulted in applying their findings in device development, with United Imaging's photon-counting CT now undergoing clinical testing and research at both Zhongshan and Ruijin Hospitals.

To further bolster support for basic research, Shanghai is encouraging companies to establish philanthropic foundations. The government will provide matching funds equivalent to 50 percent of the foundation's investment for basic research projects supported by these foundations.

"This policy will guide more and more companies to support basic research," said Ma Linjie, vice president of Shanghai Titan Scientific, a high-tech enterprise specializing in scientific research services.

Last year, Titan Scientific established the Shanghai Titan Natural Science Development Foundation to support scientists exploring uncharted scientific frontiers.

In addition, 16 Shanghai SOE have collectively established the Qiyuan Public Welfare Foundation, which is the first local SEO-initiated foundation dedicated to supporting basic research in China.

An official from the Shanghai Municipal Commission of Science and Technology's Basic Research Department hopes that more companies will join the government in funding cutting-edge basic research by creating philanthropic foundations.

Source: Jiefang Daily