The Shanghai Municipal Commission of Science and Technology recently issued the revised Measures of Shanghai Municipality for the Management of the Technological Innovation Fund for Small and Medium-sized Technology-based Enterprises.

Effective from Dec 9, 2025, through Dec 8, 2030, the new policy aims to optimize the management of the innovation fund for tech SMEs in Shanghai, reinforce the role of these enterprises in technological innovation, and stimulate entrepreneurial vitality.

I. Purpose and management

The innovation fund supports tech SMEs in pursuing technological innovation, guiding them toward cutting-edge and breakthrough technologies, promoting the efficient transformation of innovation achievements, and fostering new industries, business models, and growth drivers.

The Shanghai Municipal Commission of Science and Technology oversees annual planning, manages fund use, and conducts supervision. District-level science and technology authorities are responsible for policy formulation, project recommendation, matching funds arrangement, and local supervision.

II. Eligibility and focus

Eligible enterprises must meet all of the following criteria:

1. Be a non-listed company registered in Shanghai with sound financial and management systems.

2. Primarily engage in R&D, production, or services of high-tech products.

3. Have annual operating revenue of no more than 200 million yuan ($28.29 million) in the previous fiscal year.

4. Spend at least 500,000 yuan on R&D in the previous fiscal year, accounting for no less than 5 percent of the operating revenue.

5. Employ no more than 500 staff, with R&D personnel accounting for no less than 10 percent.

The fund prioritizes projects that:

1. Demonstrate significant independent innovation, high technological sophistication, and promising market prospects in key national and Shanghai industrial sectors.

2. Achieve breakthroughs or international recognition in key generic, advanced, modern engineering, or groundbreaking technologies.

3. Aligned with Shanghai’s strategic sectors — artificial intelligence, integrated circuits, biomedicine, emerging industries, and future industries — with strong potential to be sources of innovation and industry leaders.

The fund will not support:

1. Projects relying solely on technology importation, low-level replication, general infrastructure, or standard industrial processing.

2. Enterprises involved in major safety or quality accidents, serious environmental violations, or serious research misconduct in the previous or current year, or those listed for abnormal operations or serious discredit.

3. Enterprises that have received innovation funding three times or more.

III. Selection and funding

1. Projects qualified for the innovation fund are selected through the "Startup in Shanghai" International Innovation and Entrepreneurship Competition, with a focus on technological and product innovation, business model feasibility, market potential, team capability, and financing and financial performance.

2. Based on competition results, eligible enterprises will receive fixed-amount grants of 200,000 yuan, 600,000 yuan, 800,000 yuan, or 1 million yuan according to their award levels. Each enterprise may undertake only one innovation fund-supported project in the same year.

3. Projects and enterprises receiving innovation funding may also be eligible for other support, such as innovation vouchers, interest subsidies for science and technology loans, science and technology insurance subsidies, and other science and technology program funding in accordance with relevant regulations.

4. Projects recommended by the Shanghai Municipal Commission of Science and Technology for national-level innovation and entrepreneurship competitions and receiving State funding will be supported in line with national regulations.

IV. Supervision and compliance

District-level science and technology authorities shall establish project management mechanisms and track the development of funded projects. The Shanghai Municipal Commission of Science and Technology will work together with finance, audit, and other departments to conduct evaluations and inspections of the implementation effectiveness of the policy, enterprise project development, and the management performance of district-level science and technology departments through third-party assessments, random checks, and on-site supervision.

Enterprises found to have violated laws or regulations, or breached research integrity, will be handled in accordance with relevant laws and rules on the post-subsidy management of science and technology program funds and the investigation of research misconduct. Cases suspected of criminal offenses will be transferred to judicial authorities in accordance with the law.

V. Supplementary provisions

Matters not covered herein shall be handled in accordance with Shanghai's regulations on the management of science and technology programs, funds, and research integrity.

The previous policy, Shanghai Science and Technology Regulation [2021] No 2, is repealed upon the implementation of the new measures.

Source: Shanghai Municipal Commission of Science and Technology

Note: The above content is for reference only. In case of any discrepancies, the Chinese version shall prevail.