Provisions of Pudong New Area of Shanghai Municipality on Optimizing the Open Competition Mechanism to Select the Best Candidates to Undertake Key Research Projects and Promoting the Development of New-type Development and Research Institutions

(October 28,2022)

No.135

(Adopted at the 45th Session of the Standing Committee of the 15th Shanghai Municipal People's Congress on October 28, 2022)

Article 1

With a view to implementing the innovation-driven development strategy, optimizing the open competition mechanism to select the best candidates to undertake key research projects, and creating a good development environment for new-type development and research (hereinafter referred to as R&D) institutions, promoting Pudong New Area’s establishment of a core area of the international scientific and technological innovation , these Provisions are formulated in accordance with the basic principles of relevant laws and administrative rules, and in the light of the actual circumstances of Pudong New Area.

Article 2

These Provisions shall apply to the attraction of leading scientific and technological talents via the open competition mechanism to select the best candidates to undertake innovation projects, to the cultivation and development of new-type R&D institutions, and to the relevant activities of promotion, administration and guarantee thereof.

The innovation projects in these Provisions include such projects as scientific research, technology development and breakthrough, achievement application, demonstration application, industrialization, etc.

Article 3

The Municipal People’s Government shall support Pudong New Area to take the lead in promoting the innovation of the scientific and technological system and mechanism, establish an overall planning and coordination mechanism to promote the development of new-type R&D institutions, and support Pudong New Area to continuously optimize the environment for innovation and entrepreneurship and improve the public services for scientific and technological innovation.

The municipal departments of science and technology, economy and informatization, development & reform, finance, state-owned assets supervision and administration, and auditing shall, in accordance with their functions and duties and these Provisions, support Pudong New Area in carrying out the work of open competition to select the best candidates for innovation projects and the development of new-type R&D institutions.

The municipal departments of planning and resources, human resources and social security, public security, civil affairs, financial regulation, and taxation, and such units as the Customs shall, in accordance with their respective functions and duties and these Provisions, support the development of new-type R&D institutions in Pudong New Area.

Article 4

Pudong New Area People’s Government shall coordinate in an overall manner major matters concerning the open competition to select the best candidates for innovation projects and the promotion of the development of new-type R&D institutions within its administrative area, enhance the capacity for independent innovation, build a public platform to provide services for the activities of open competition to select the best candidates to undertake key research projects, and attract the participation of nongovernmental forces and the gathering of scientific and technological talents, so as to create an ecological environment conducive to innovation.

The Pudong technical and economy department shall be responsible for the specific promotion of the open competition to select the best candidates for innovation projects and the development of new-type R&D institutions, improve the integrated dispatch and allocation mechanism of projects, bases, talents and funds, and enhance the capability to undertake major strategic tasks of the State and this Municipality.

Other relevant departments of Pudong New Area shall, in accordance with their respective functions and duties and these Provisions, work jointly to promote the open competition to select the best candidates for innovation projects and the development of new-type R&D institutions.

Article 5

A non-profit and public-welfare public service platform shall be established in Pudong New Area for the open competition to select the best candidates for innovation projects (hereinafter referred to as the service platform), be responsible for such matters as collecting and publishing information of innovation projects, and organizing and implementing the open competition to select the best candidates for innovation projects, and provide relevant public services. The service platform shall, in accordance with the requirements of professional and socialized operation, entrust its operation to a special agency, carry out cooperation with relevant enterprises, institutions, industrial funds and venture capital funds, and accept the supervision and administration of the technical and economy department of the Area.

The rules for using this platform to conduct activities of open competition to select the best candidates to undertake key research projects shall be formulated by Pudong New Area People’s Government. The service platform shall establish an information release system, specify the service contents and supervision methods and publish them.

Article 6

The service platform shall employ well-known experts in the field of scientific and technological innovation to form an expert committee and establish an expert database. The expert committee shall be responsible for providing decision-making consultation for the service platform to organize and carry out such activities as the open competition to select the best candidates for innovation projects. The experts in the expert database shall, in accordance with the needs of relevant participants, provide professional support for the publishing, application, evaluation and best candidates selection for innovation projects. The list of the expert committee and the expert database shall be publicized.

Article 7

Innovation projects published on the service platform shall be solicited from the whole society, focus on breakthroughs in key fields and key core technologies, and major achievements transformation, and have the characteristics of a strong innovation source, great influence, and wide-range development stimulation.

The innovation projects of the government departments, state-owned enterprises and public institutions of this Municipality may be published on the service platform, except for those that need to be kept secret according to law. Innovation projects of other enterprises and social organizations are encouraged to be published on the service platform.

Where an innovation project is published on the service platform, such matters shall be specified as the requirements for scientific research capability for the completion of the project, the criteria for the project assessment and acceptance, and the allocation and management of funds.

Article 8

The applicant for an innovation project shall, in accordance with the demand of the project, submit the plan, explain the organizational form of the project, the chief scientist or other important scientific and technological leaders, and the composition of the team, and prove such matters as their scientific research capability.

Nationality, age, seniority, educational background, work experience, or the category of the employer unit shall not be used as the qualifications for domestic and foreign talents and teams to participate in the open competition to select the best candidates for innovation projects in Pudong New Area.

Article 9

The publisher of an innovation project shall conduct due diligence investigation and evaluation on the plans and relevant information submitted by the applicants, and decide on one applicant as the best candidate to undertake the innovation project.

If it is not possible to decide on one single best candidate, the “horse-racing” system may be adopted to select multiple candidates to undertake the innovation project, who will independently and competitively participate in the open competition, tackle the key problems and carry out scientific research activities as agreed on in the contract.

Article 10

Enterprises and units participating in the activities of open competition to select the best candidates for innovation projects are encouraged to carry out the transformation and application of relevant scientific and technological achievements in Pudong New Area, so as to achieve clustered development there.

Pudong New Area shall take measures to introduce and cultivate new-type R&D institutions that conform to the law of innovation, raise the efficiency of innovation and meet the demand for innovation, and shall implement an organizational system and governance structure that are managed in accordance with the articles of association. It shall support new-type R&D institutions to participate in the activities of open competition to select the best candidates for innovation projects in Pudong New Area.

Article 11

The publisher and the selected best candidate of an innovation project may agree on the ownership of the intellectual property of the scientific and technological achievements according to law. Where the transformation and application of scientific and technological achievements of an innovation project conform to the strategic positioning of the development of this Municipality and Pudong New Area, the relevant municipal and Pudong scientific and technological innovation funds shall provide support, and the project shall be included in the scope of land use guarantee according to procedures. Pudong New Area shall provide policy support such as financing guarantee and financial subsidies therefor.

Non-governmental capital is encouraged to cooperate with the Pudong New Area Government Investment Fund to invest in the projects of scientific and technological achievements transformation, demonstration application, and industrialization in Pudong New Area. The investment revenue of the Pudong New Area Government Investment Fund may be used for incentive awards.

Non-governmental forces are supported to focus on supporting new R&D institutions in conducting such activities as scientific research, and technological development and breakthroughs by such means as setting up funds, making donations, and making equity investment.

Article 12

The establishment of a result-oriented fund allocation mechanism shall be supported for the innovation projects that are published for open competition to select the best candidates. If the projects are completed and pass the acceptance inspection, the remaining funds shall be allocated according to the contract.

New-type R&D institutions shall be supported in implementing a lump sum contract and negative list management for innovation projects with government funds for scientific research. The negative list shall be prepared by the financial department jointly with relevant departments according to the sources of government funds. The said institutions shall have the right to independently manage and use the project funds on the basis that they promise to abide by the requirements of scientific research ethics and morals, and integrity in work and academic style, and that all funds except the prohibited expenditures specified in the negative list will be used for the expenditures related to the research work of the project.

For innovation projects with non-governmental funds, the publisher and the selected best candidate shall agree on the method of fund use in the relevant contracts.

Article 13

Pudong New Area shall provide such service and support as residence, entry and exit, household registration, housing, medical insurance, and children’s education for the relevant talents trained and introduced by new-type R&D institutions. Those urgently needed talents who work in new-type R&D institutions in Pudong New Area may enjoy financial subsidies provided by Pudong New Area in accordance with the provisions. New-type R&D institutions in Pudong New Area shall be supported to train graduate students jointly with institutions of higher learning in accordance with the provisions.

Qualified overseas personnel may serve as legal representatives of new-type R&D institutions in Pudong New Area.

Article 14

Administrative units that use government funds to purchase and construct large scientific instruments and facilities shall provide shared services for new-type R&D institutions in Pudong New Area in accordance with the provisions.

New-type R&D institutions in Pudong New Area are encouraged to cooperate with overseas R&D institutions in conducting technological research, and to conduct international scientific and technological cooperation and exchanges by holding international academic conferences, scientific and technological innovation exhibitions, scientific and technological innovation competitions, etc.

New-type R&D institutions in Pudong New Area that import equipment and materials may enjoy the policy of reduction and exemption of tariffs and import value-added taxes in accordance with the provisions.

Article 15

New-type R&D institutions in Pudong New Area shall be supported to implement the task-oriented performance evaluation management mode. Comprehensive budget management may be exercised for new-type R&D institutions established with government funds. For other new-type R&D institutions, financial subsidies may be given to the excellent ones based on the evaluation results of the public-benefit, scarcity and leading nature of their R&D and service activities.

In the case of new-type R&D institutions undertaking strategic tasks in Pudong New Area, support shall be given to the establishment of a medium- and long-term comprehensive evaluation mechanism with innovation performance at its core.

Article 16

Pudong New Area shall, in accordance with the principles of support for innovation, power consistent with duties, exemption from liability with due diligence, and accountability for dereliction of duties, explore the establishment of a fault-tolerant mechanism that conforms to the characteristics of innovation projects, and carry out supervision in accordance with the stipulations of the relevant contracts.

Article 17

The meanings of relevant terms in these Provisions:

1.“The open competition to select the best candidates to undertake key research projects” means a non-periodical scientific research funding mechanism by which innovation projects are published to society, so as to select leading scientific and technological talents as the best candidates to take charge of the projects and organize teams to provide solutions, and fulfill the contracts by producing scientific research and technological results.

2.The lump sum contract means a mode in which the project leader independently manages and uses the project fund in accordance with the provisions or agreements.

3.The “horse racing” system means the organization and management mode of selecting, when “open competition to select the best candidate for an innovation project” is launched, the best few candidates who will independently and competitively tackle the key problems to accomplish the project as agreed on in the contract

Article 18

These Provisions shall be effective as of December 1, 2022.