Shanghai rolled out the Management Measures of Shanghai Municipality for the Filing and Performance Evaluation of New-Type R&D Institutions (Trial Implementation) in Oct 2023.

Effective from Nov 1, 2023, to Oct 31, 2025, these measures are designed to boost the high-quality development of new-type R&D institutions in the city, amplifying their contributions to sci-tech progress.

I. Filing conditions

When new-type R&D institutions established by social forces satisfy the following criteria, they may seek a filing with the Shanghai Municipal Commission of Science and Technology, or SMCST, subject to previous reviews and recommendations by district-level science and technology authorities:

1. Possessing the properties of public R&D functions: These institutions shall primarily engage in activities such as basic research, applications-oriented basic research, core technology breakthroughs and generic industrial technology R&D and services. Entities primarily involved in production and manufacturing, R&D services outsourcing, teaching and training, parks management, production-related inspections and testing activities are excluded from this category.

2. Demonstrating a steady R&D investment capability: The annual R&D investment shall amount to no less than 20 percent of the core business income, or reach 5 million yuan ($688,000). Where no core business income is generated yet, the R&D investment shall constitute no less than 50 percent of the total expenditure.

3. Having a stable talent team: These institutions shall have over 20 permanent R&D staff representing at least 30 percent of the personnel. Of these, a minimum of 10 individuals shall work full time on R&D and those holding a master's degree, a doctorate or senior professional titles shall make up at least 30 percent of the permanent R&D members.

4. Meeting basic conditions for R&D and testing: These institutions shall possess scientific research instruments and equipment with an original value of at least 2 million yuan, or have conducted commissioned R&D testing amounting to a minimum of 2 million yuan in the previous year. Additionally, they shall have a fixed site area covering no less than 600 square meters to facilitate R&D and testing.

5. Implementing a sound management system: These institutions shall have articles of association and internal management systems related to R&D input, institutional operations, talent team development, scientific research management and the transformation of achievements.

II. Performance evaluation

The SMCST delegates third-party professional organizations to conduct the performance evaluations of new-type R&D institutions and publicize the results.

Key evaluation points

New-type R&D institutions shall be primarily assessed in their R&D input and output, talent introduction and cultivation, transformation of achievements and support for industries. The SMCST has the authority to set the evaluation indicators and weights of the indicators according to the distinct functional positionings of the institutions.

For new-type R&D institutions mainly engaging in basic research and applications-oriented basic research, particular emphasis shall be placed on assessing them in the effectiveness in addressing major scientific challenges, the originality and academic significance of outcomes, the ability to attract social investments and their international influence.

For those involved in core technology breakthroughs and generic industrial technology R&D and services, particular emphasis shall be laid on assessing them in undertaking strategic missions, overcoming core technological hurdles, resolving challenges concerning generic industrial technology, transforming achievements and providing support for industries.

R&D input and output

Regarding the R&D input and output mentioned in the "key evaluation points", the following aspects shall be mainly evaluated:

1. R&D inputs: These include the total R&D expenditure and its proportion to the core business income, the total number of scientific research projects at or above the provincial and ministerial levels, the utilization of social funds, the original value of R&D equipment and the size of R&D premises.

2. R&D outcomes: A comprehensive evaluation of scientific research papers, intellectual property, as well as new techniques, new products, new processes and new materials that reflect core technology and achievements in generic industrial technology R&D. The focus shall be placed on assessing the quality, contributions and influence of representative achievements.

3. R&D input-output efficiency: Evaluating the ratio of the total R&D input factors to the total output.

Talent introduction and cultivation

As for talent introduction and cultivation mentioned in the "key evaluation points", the scale and composition of permanent R&D personnel in new-type R&D institutions will be primarily assessed. Stress shall be placed on assessing the competence of representative staff members — evaluating their innovative capabilities, value and contributions to the development of institutions and innovation in mechanisms. This includes resource aggregation, team leadership, academic and technological achievements, outcomes of the transformation of achievements, as well as effectiveness of domestic and international cooperation and exchanges.

Transformation of achievements and support for industries

Concerning the transformation of achievements and support for industries mentioned in the "key evaluation points", the following areas will be primarily assessed:

1. Technical services: These include the total amount, revenue and coverage of technological development, consulting and services offered by new-type R&D institutions to non-affiliated enterprises.

2. Transformation of achievements: The institutions' potential for the transformation of achievements, or the beneficial results of the transformation of achievements and the spillover beneficial results of technology.

3. Support for industries: This includes the institutions' involvement in industrial planning and standards setting, their establishment of industrial innovation bases and their exploration of new industrial directions.

Evaluation results

The SMCST and district-level science and technology authorities will rank the annual performance evaluation results of the institutions from high to low and assign them one of the four evaluation ratings: Grade A, B, C or D. Generally, the proportions of Grade A, B and C shall not exceed 10 percent, 15 percent and 20 percent of participating institutions of the year.

Subsidies

Based on the evaluation results, the municipal and district-level sci-tech departments will provide subsidies to the top-performing institutions in a 1:1 ratio between the municipal and district-levels. The total subsidy amount for a single institution shall not exceed 20 percent of its R&D input in the previous year — any supporting funds received by the institution for scientific research projects shall be deducted from the said input.

Specifically, institutions rated as Grade A shall each receive a total subsidy amount of no more than 5 million yuan; for Grade B institutions, not exceeding 2 million yuan; for Grade C institutions, less than 1 million yuan. Institutions rated as Grade D are not eligible for financial subsidies.

Sources: Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Bureau of Finance

Note: The English version of these measures is for reference only; the official Chinese document shall prevail.