Regulations of Shanghai Municipality on the Advancement of

Science and Technology

(Adopted at the 28th Session of the Standing Committee of the 10th Shanghai Municipal People's Congress on June 20, 1996; amended in accordance with the Decision on Amending the Regulations of Shanghai Municipality on the Advancement of Science and Technology adopted at the 20th Session of the Standing Committee of the 11th Shanghai Municipal People's Congress on July 13, 2000; revised for the first time at the 21st Session of the Standing Committee of the 13th Shanghai Municipal People’s Congress on September 17, 2010; revised for the second time at the 13th Session of the Standing Committee of the 16th Shanghai Municipal People's Congresson May 10, 2024)

Chapter I General Provisions

Article 1

With a view to promoting the advancement of science and technology in an all-round manner, leveraging the role of science and technology as the primary productive force, innovation as the primary driving force and talents as the primary resource, accelerating the construction of Shanghai into an international science and technology innovation center, and advancing science and technology innovation to support and guide economic and social development, these Regulations are formulated in accordance with the Law of the People’s Republic of China on the Advancement of Science and Technology, and other relevant laws and administrative rules, and in the light of the actual circumstances of this Municipality.

Article 2

This Municipality shall adhere to the core position of science and technology innovation in the overall modernization drive, persist in promoting high-level scientific and technological self-reliance and development, and in orienting the world's scientific and technological frontier, the main economic fields, the major needs of the country, and the life and health of the people, and insist on leveraging the decisive role of the market in allocating innovation resources and the better role of the government.

Article 3

This Municipality shall encourage scientific and technological research and development institutions, institutions of higher learning, enterprises, public institutions, social organizations, and citizens to carry out scientific exploration and technological innovation, thereby stimulating the innovative impetus and vitality of various innovation entities.

This Municipality shall strengthen innovation services, optimize business environment, promote the allocation and flow of various innovation elements, and encourage and support market entities to participate extensively in science and technology innovation.

This Municipality shall foster a social environment conducive to science and technology innovation, carry forward the scientist spirit, entrepreneurship and craftsmanship, foster a social atmosphere that values pioneering spirit, ,encourage innovation and tolerate failure, and cultivate the city's culture of science and technology innovation.

Article 4

The Municipal People's Government shall strengthen its leadership over the advancement of science and technology in the Municipality, incorporate the advancement of science and technology into the plan for national economic and social development, organize the preparation of medium and long-term scientific and technological development plans, and coordinate the important matters in the advancement of science and technology; and proactively undertake major strategic tasks of the country, facilitate cooperation with relevant state departments, and strive for the initial piloting of reform measures in the field of science and technology innovation in this Municipality.

The district people's governments shall be responsible for the advancement of science and technology within their respective administrative areas, work out the scientific and technological development plans, and optimize the environment for scientific and technological development.

The municipal and district administrative departments for science and technology shall be responsible for the overall coordination, service guarantee, administration and supervision of scientific and technological advancement activities within their respective administrative areas; other relevant departments shall, in accordance with their respective functions and duties, be responsible for the work related to the advancement of science and technology.

Article 5

This Municipality shall develop the cause of science and technology popularization, strengthen the infrastructure and capacity building of science and technology popularization, and improve the scientific and cultural literacy of the public, particularly among the youth.

The state organs, social organizations, enterprises, public institutions and other organizations of this Municipality shall carry out science popularization in accordance with law. Enterprises, public institutions, social organizations, and individuals are encouraged and supported to carry out public welfare science popularization activities.

Article 6

The Municipal People's Government shall set up science and technology awards to reward organizations and individuals that have made outstanding contributions to the advancement of science and technology.

Private and social sectors are encouraged to set up science and technology awards in accordance with law to reward organizations and individuals that have made contributions to the advancement of science and technology.

Article 7

This Municipality shall formulate and implement the program for building a city featuring intellectual property strength, to promote the creation, protection and application of intellectual property rights and inspire science and technology innovation.

Chapter II Basic Research

Article 8

The Municipal People's Government and its relevant departments shall strengthen overall planning and coordination, advance the integration of goal-orientation and free exploration, focus on basic frontier domains and the requirements of economic and social development, identify key scientific challenges, and enhance a forward-looking, strategic, systematic, and impactful basic research framework.

Article 9

The Municipal People's Government shall establish a basic research input mechanism that combines stable support sand competitive support, and gradually increase fund investment in basic research. The proportion of the municipal government financial funds for science and technology innovation used for basic research shall be no less than one third of the total in principle.

The Municipal People's Government shall establish a natural science fund to be used for subsidizing basic research in natural sciences.

This Municipality shall guide private and social sectors to support basic research. It shall encourage enterprises and other private and social sectors to fund and organize basic scientific and technological research programs or to start such programs jointly with the government. It shall also encourage private and social sectors to fund basic research through donations, the establishment of funds, and other methods. The basic research funded by private and social sectors shall enjoy relevant policy support in accordance with the relevant provisions of the State and this Municipality.

Article 10

This Municipality shall enhance its administration framework and evaluation system for scientific research organizations, aligning with the principles of basic research.

The municipal administrative department of science and technology shall, jointly with relevant departments, establish a "pilot zone for basic research", to innovate management mechanisms in personnel selection, funding investment, and organizational evaluation, and carry out pilot projects to support high-risk and high-value basic research.

Chapter III Technological Innovation and Achievement Transformation

Article 11

The municipal and district people's governments and their relevant departments shall formulate measures to support all kinds of innovation entities in carrying out technological innovation, and shall encourage various innovation entities to carry out research on generic technologies.

The Municipal People's Government shall establish cross-regional, cross-departmental and cross-industrial resource allocation and organizing mechanisms centering on the development of leading industries, strategic emerging industries and future industries, support the construction of innovation consortium and organize and carry out the research of key core technologies.

The municipal administrative department of science and technology shall reform the management mode of science and technology projects and improve the support mechanism for science and technology projects.

Article 12

Scientific and technological research and development institutions and institutions of higher learning established with government financial funds have the autonomy to determine to commercialize their scientific and technological achievements. No examination and approval or filing is necessary unless they pertain to state secrets or national security. They can make a decision on whether to conduct asset evaluation.

The municipal departments of science and technology administration, and finance shall carry out the reform of the administration system for scientific and technological achievements formed by the use of government financial funds, and promote scientific and technological research and development institutions and institutions of higher learning to establish rules for the disclosure of scientific and technological achievements and a distinct management system for on-the-job scientific and technological achievements, to facilitate the commercialization and application of scientific and technological achievements.

Article 13

The government-funded scientific and technological research and development institutions, and institutions of higher learning may, in accordance with relevant provisions, grant the intellectual property rights of their on-the-job scientific and technological achievements, as well as the rights to use, transfer, and invest in these achievements that have not yet formed intellectual property rights, in whole or in part, to the individuals who have achieved these results. They may also stipulate with these individuals the methods for distributing income generated from the commercialization of these scientific and technological achievements.

If the scientific and technological achievements held by the government-funded scientific and technological research and development institutions, or institutions of higher learning, without justifiable reasons, have not been organized for commercialization for more than one year after their registration with the said institution, the individuals who have completed the achievements may sign agreements with the institutions in accordance with law and, after being authorized in the manner prescribed in the preceding Paragraph, invest in the commercialization by themselves, or collaborate with others in realizing the commercialization.

Article 14

Government-funded scientific and technological research and development institutions and institutions of higher learning shall, in accordance with the provisions, reward the personnel who have made important contributions to the completion and commercialization of scientific and technological achievements. The withdrawal of rewards for activities such as technological development, technical consultation and technical service shall be carried out in accordance with the relevant provisions on the commercialization of scientific and technological achievements.

Article 15

This Municipality shall improve the service system for the transfer and commercialization of scientific and technological achievements and support the development of technology transfer institutions. The municipal administrative department of science and technology shall, jointly with relevant departments, improve the market-oriented allocation system of technology as a factor of production, strengthen the building of technology trading venues, establish a platform for connecting online and offline technology supply and demand, and support the orderly flow of technology as a factor of production.

This Municipality shall encourage and support all kinds of innovation entities to build functional platforms for the commercialization of scientific and technological achievements, and provide services for the verification of technical concepts, commercial development, pre-production tests or trial production of scientific and technological achievements.

Chapter IV Science and Technology Innovation of Enterprises

Article 16

This Municipality shall strengthen the principal role of enterprises in science and technology innovation, ensure all kinds of enterprises have equal access to science and technology innovation resources and benefit from government policies for science and technology innovation in accordance with law, promote the agglomeration of all kinds of innovation elements to enterprises, guide enterprises to increase R&D investment, and foster enterprises as the primary decision-makers in technological innovation, research investment, and research organization as well as achievement commercialization.

This Municipality shall promote the formation of an innovation system with enterprises as the main entities, which features efficient cooperation of scientific and technological research and development institutions, institutions of higher learning, and other relevant professional service institutions, thereby fostering deeper integration of the innovation and industrial chains.

Article 17

The municipal and district people's governments shall establish a support mechanism for small and medium-sized science and technology enterprises. By optimizing the enterprise public service platform, improving the government procurement policy, allocating special funds, and other means, they shall guide small and medium-sized science and technology enterprises to develop new technologies, new products and new techniques. Through measures such as technology innovation vouchers, they shall guide science and technology service institutions to provide specialized services such as research and development, technology transfer, intellectual property rights, and scientific and technological consulting for small and medium-sized science and technology enterprises.

They shall also encourage scientific and technological research and development institutions and institutions of higher learning to, under the same conditions, give priority to the transfer of scientific and technological achievements with independent intellectual property rights to small and medium-sized scientific and technological enterprises, or to the provision of technical support, and relevant government departments shall provide convenience.

Article 18

The municipal and district people's governments shall establish a support mechanism for the science and technology service industry, to promote the professionalization, marketization, and internationalization of the technology service industry, and support the agglomeration of science and technology service institutions.

The municipal and district people's governments and their relevant departments shall formulate measures to support the development of technology innovation and entrepreneurship platforms, such as technology business incubators and university science parks, and guide them to provide professional services for the growth of science and technology enterprises.

Article 19

This Municipality shall leverage the role of equity investment in promoting science and technology innovation, and through the establishment of government guidance funds and other methods, guide and encourage equity investment such as angel investment and venture capital to support science and technology innovation.

It shall support qualified technology enterprises to carry out listing, bond issuance, mergers and acquisitions, refinancing and other activities in multi-level capital markets both domestically and internationally.

It shall encourage commercial banks to improve their technological financial exclusive institutions and proprietary products and services, and provide financing services such as credit loans, intellectual property pledge loans, equity pledge loans, performance guarantee insurance loans, etc.

It shall also encourage insurance institutions to provide support in product research and development, production and sales, data security, and intellectual property protection for enterprises that carry out science and technology innovation.

Article 20

This Municipality shall, in accordance with relevant provisions, implement tax incentives for additional deduction of research and development expenses, accelerated depreciation of scientific research instruments and equipment, tax reduction and exemption of technology development and transfer, donation and funding for scientific and technological activities, import of equipment or supplies related to scientific research, popularization of science and technology, and other relevant activities, and support enterprises to strengthen science and technology innovation.

The tax, finance, science and technology, economy and informatization and other departments shall provide enterprises with policy interpretation, operational guidance and other services to enhance the convenience of enterprises to enjoy tax incentives.

Chapter V Science and Technology Research and Development Institutions

Article 21

This Municipality shall support, serve and guarantee the construction of Shanghai-based national laboratories, national laboratory bases and national key laboratories; and build a laboratory system led by national laboratories and supported by national key laboratories and Shanghai municipal key laboratories.

Article 22

The municipal and district people's governments and their relevant departments shall innovate methods to support the development of new-type R & D institutions featuring diversified investors, modernized management systems, market-oriented operation mechanisms, and flexible employment mechanisms, and establish a classified support system.

Article 23

Government-funded scientific and technological research and development institutions shall establish a modern institution system, and exercise autonomy in selecting and employing staff, initiating scientific research projects, commercializing the achievements and distributing salaries in accordance with relevant provisions of the State and this Municipality.

This Municipality shall refine the evaluation system of government-funded scientific and technological research and development institutions, carry out classified evaluation of scientific and technological research and development institutions in accordance with their own positioning, and the evaluation results shall guide institutional support, adjustments and termination of these institutions.

Article 24

This Municipality shall encourage enterprises and other private and social sectors to establish scientific and technological research and development institutions, and support their equitable  participation in fiscal-funded scientific and technological projects. Tax incentives shall be legally granted to non-profit scientific and technological research and development institutions established by private and social sectors.

Chapter VI Science and Technology Innovation Talents

Article 25

This Municipality shall promote the development of a talent hub of high-caliber professionals, improve the training, introduction, use, incentive and evaluation mechanisms for science and technology innovation talents, provide conditions and platforms for innovation and entrepreneurship for all kinds of science and technology innovation talents, and promote the integrated development of education, science and technology, and talents.

The municipal and district people's governments and relevant departments shall establish supporting mechanisms and supporting measures for leading scientific and technological talents and innovation teams; strengthen the development of talents providing technological services, including those skilled in transfer and commercialization of scientific and technological achievements, entrepreneurial incubation, and park operation and management; and establish a support and sequential training mechanism conducive to the growth of young scientific and technological talents, thereby stimulating their innovation vitality.

Article 26

This Municipality shall establish a future-oriented talent cultivation mechanism. It shall support institutions of higher learning in strengthening their basic disciplines, promoting interdisciplinary integration, and developing cultivation bases for basic discipline and frontier interdisciplinary talents; and support enterprises to cultivate science and technology innovation talents jointly with institutions of higher learning and scientific and technological research and development institutions, to meet the demand of the industrial development.

Article 27

This Municipality shall improve its policy for attracting science and technology innovation talents, and intensify efforts to recruit talents in urgent need and short supply. The relevant departments of the municipal and district people's governments shall, in accordance with relevant provisions, offer facilitation service for their entry and exit procedures, housing, medical care, children schooling and other aspects.

Article 28

This Municipality shall establish a mechanism for the flow of science and technology innovation talents.

It shall encourage scientific and technological research and development institutions, institutions of higher learning, and enterprises to facilitate talent exchange through various methods including part-time positions and job rotations, and allow scientific and technical personnel of institutions of higher learning and scientific and technological research and development institutions to specialize in industrial technological innovation within enterprises while retaining their original status.

Article 29

This Municipality shall improve the evaluation and incentive mechanism of science and technology innovation talents which is oriented by innovation value, ability and contribution, and conduct classified evaluation of the talents who are engaged in different kinds of science and technology innovation activities. The municipal human resources and social security department shall improve the professional title evaluation system of science and technology innovation talents jointly with relevant departments, and establish and adjust the professional categories as needed.

Chapter VII Regional Science and Technology Innovation

Article 30

The Municipal People's Government shall improve the planning and layout of scientific and technological resources, coordinate the development of science and technology innovation in all districts, guide the rational distribution of innovation resources and innovation entities, foster new drivers of development, and promote the formation of new quality productive forces. The district people's governments shall, in accordance with the characteristic positioning and development level of each district, improve the science and technology innovation systems of their own administrative areas.

The municipal and district people's governments shall strengthen the construction and development of national independent innovation demonstration zones and high-tech industrial development zones, and promote the construction of important base areas of science and technology innovation centers such as Zhangjiang Science City, Grand Neobay, etc.

This Municipality shall support Pudong New Area, China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area to carry out pilot projects in the field of science and technology innovation.

Article 31

This Municipality shall promote the building of the regional science and technology innovation community in the Yangtze River Delta region, improve the regional collaborative innovation mechanism, integrate the cross-regional and cross-departmental science and technology innovation forces, advance the building of the G60 science and technology innovation corridor and other important base areas of the Yangtze River Delta, jointly conduct major scientific issue and key core technology research, strengthen the interconnection and open sharing of innovation resources, and promote the integrated allocation of projects, talents, bases and funds in the Yangtze River Delta region.

This Municipality shall promote the improvement of the mechanism that ensures the valid use of science and technology innovation vouchers across the Yangtze River Delta region, and leverage the role of science and technology innovation vouchers in promoting and guiding the sharing of large-scale scientific instruments and facilities in the Yangtze River Delta region.

Article 32

This Municipality shall promote cooperation in science and technology innovation with other regions in China, establish regular cooperation and exchange mechanisms for science research, talent exchange, achievement commercialization, industry docking, etc., and promote the rational flow and coordinated development of innovation elements such as talents, technology, funds.

Chapter VIII International Science and Technology Cooperation

Article 33

This Municipality shall accelerate the docking of rules, regulations, management and standards with the international community and promote institutional openness in the field of science and technology innovation.

This Municipality shall improve the mechanism of open, inclusive, mutually beneficial and shared international science and technology cooperation and exchange, strengthen all-dimensional, multi-level and wide-ranging international exchanges and cooperation in science and technology innovation, create an environment conducive to the cross-border flow of innovation elements, and integrate into the global science and technology innovation network.

Article 34

This Municipality shall encourage all kinds of innovation entities to participate in global cooperation in science and technology innovation through establishing international platforms for science and technology innovation cooperation, participating in and initiating international science and technology organizations or international science events.

The municipal departments of intellectual property, commerce, judicial administration, and science and technology administration shall provide guidance and services in such aspects as overseas intellectual property protection, and risk warning for international science and technology cooperation.

Article 35

This Municipality shall encourage international science and technology organizations and world-renowned scientific and technological research and development institutions and science and technology service institutions to settle down or set up branches in Shanghai.

It shall also encourage world-renowned institutions of higher learning to conduct Sino-foreign cooperation in running academic institutions in Shanghai, and encourage overseas science and technology enterprises to invest in setting up research and development centers and operation centers in Shanghai, and to cooperate with various innovation entities in carrying out science and technology innovation activities.

Chapter IX Service and Guarantee

Article 36

This Municipality shall establish a multi-level and diversified system of scientific and technological funding system, guided primarily by government investment, with significant contributions from enterprises, and extensive participation of social capital.

The municipal and district people's governments shall gradually increase financial investment in science and technology, and take measures to guide and encourage all kinds of science and technology innovation entities to increase their investment in scientific and technological research and development. The total social funds for scientific and technological research and development shall account for more than 4% of the gross domestic products of this Municipality.

Article 37

The municipal and district people's governments and their relevant departments shall promote the application of science and technology innovative products and services by means of the government's initial procurement, ordering, and other approaches.

The municipal department of economy and informatization shall, jointly with relevant departments, compile a recommended catalogue of innovative products and implement relevant supporting policies to promote the marketization and industrialization of innovative products.

Article 38

The Municipal People's Government and its relevant departments shall formulate measures to strengthen the planning and layout of forward-looking, targeted and reserve major scientific and technological infrastructure, and support the construction and development of major scientific and technological infrastructure. Relevant departments shall, in accordance with their respective functions and duties, ensure the normal operation of major scientific and technological infrastructure.

The relevant departments of the municipal and district people's governments shall strengthen the guarantee of space, computing power and other resources, and support the deployment of major scientific and technological projects and the commercialization of scientific and technological achievements.

This Municipality shall establish an open and sharing mechanism for public data, to support enterprises to share data in accordance with law. Large scientific instruments and facilities built or purchased with government financial funds shall be made accessible for public sharing in accordance with the relevant provisions.

Article 39

The municipal administrative department of science and technology shall, jointly with relevant departments, carry out regular investigations on the basic conditions and resources of science and technology, establish a science and technology reporting system, timely publicize to the society the distribution and use of science and technology resources, and provide services such as information inquiry and promotion of science and technology resources for all kinds of innovation entities.

Article 40

The Municipal People's Government shall establish a strategic decision-making consultation mechanism for science and technology, and promote the building of high-level science and technology think tanks, to provide services for the government’s strategic decision-making on science and technology.

The municipal administrative department of science and technology shall, jointly with relevant departments, establish a mechanism for evaluating the consistency of science and technology innovation policies, and conduct evaluations of science and technology innovation related policies in this Municipality.

Chapter X Supervision and Administration

Article 41

The municipal and district people's governments shall strengthen the coordinated and integrated management of government financial investment in science and technology, so as to optimize and integrate such investment, and improve the efficiency of the fund use.

This Municipality shall establish an administration mechanism for government financial funds for science and technology which conforms to the law of science and technology innovation. The municipal administrative department of science and technology shall, jointly with the financial and other departments, establish a classified performance evaluation system for different fields and stages, and enhance monitoring during and after project implementation, to improve the performance of scientific and technological research.

The auditing and finance departments shall supervise and inspect the administration and use of government financial funds for science and technology in accordance with the law.

Article 42

The municipal administrative department of science and technology shall, in accordance with the relevant provisions of the State and this Municipality, collect the credit information of scientific and technological activities into the public credit information platform of this Municipality. The record of the credit information of scientific and technological activities shall be used as an important basis for the appointment of professional and technical positions or titles, the examination and approval of applications for scientific and technological research and development projects, and the granting of scientific and technological awards.

Organizations and individuals that violate the administrative norms of scientific and technological activities shall be recorded in the database of scientific research integrity and misconduct in accordance with the relevant provisions, and be subject to joint disciplinary measures in the application for scientific and technological projects, government procurement, financial support, and commendation and awards in accordance with laws, rules and regulations.

Article 43

Scientific and technological activities shall abide by laws, rules and regulations and scientific and technological ethics, and strengthen risk prevention and control of scientific and technological ethics.

Scientific and technological research and development institutions, institutions of higher learning, enterprises and public institutions shall fulfill their primary responsibility for the administration of science and technology ethics, improve the examination mechanism of scientific and technological ethics in accordance with the relevant provisions of the State and this Municipality, and conduct ethical review of scientific and technological activities.

Article 44

This Municipality shall coordinate science and technology innovation and scientific and technological security, establish rules and mechanisms for preventing and defusing scientific and technological security risks, and strengthen the safety administration of scientific and technological research, development and application activities.

This Municipality shall strengthen the capacity of science and technology confidentiality. Engagement in scientific and technological activities shall abide by the science and technology confidentiality rules.

Article 45

Where relevant units and individuals of this Municipality, in promoting the reform and development of science and technology innovation, fail to achieve the expected goals when adopting the decisions made thereby, but comply with laws, rules and regulations and the relevant provisions of the State and this Municipality, being diligent and responsible, and do not seek illegal interests, they shall be exempted from negative evaluation, and from relevant responsibilities as well in accordance with law.

If the relevant units and individuals in this Municipality undertake the science and technology projects with strong exploratory nature and high uncertainty, and fail to form the expected scientific and technological achievements, but have strictly performed the contracts of the projects, without violating the integrity requirements, they shall be exempted from negative evaluation, and from relevant responsibilities as well in accordance with law.

Chapter XI Supplementary Provisions

Article 46

The scientific and technological research administration and achievement commercialization by the medical and health institutions established by the government shall be carried out with reference to the provisions of these Regulations.

Article 47

These Regulations shall be effective as of June 1, 2024.