Program for Construction of Special Hi-tech Entrepreneurial Communities (Special Cluster Zones of Innovative and Entrepreneurial Talents)
The Program for Development of Special Hi-tech Entrepreneurial Communities (Special Cluster Zones of Innovative and Entrepreneurial Talents) is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy and create excellent spaces and outstanding services for the hi-tech entrepreneurship to the best of our capabilities.
I. Construction Approach
For the purpose of serving hi-tech innovation and entrepreneurial talents, incubating hi-tech start-ups and cultivating strategic emerging industries and modern service industries, to integrate entrepreneurial resources to the fullest, restructure entrepreneurial policies and systems, develop innovation and entrepreneurial platforms, create an entrepreneurial ecology and develop special hi-tech entrepreneurial communities (special cluster zones of innovative and entrepreneurial talents) (hereinafter referred to as “Special Zones”) with “special institutional innovation, extra policy support, specific regional platform and unique functional system”.
II. Construction Requirements
1. The construction of Special Zones should revolve around clearly identified regional predominant industry and cover the construction of platforms such as professional incubators, accelerators, pilot plants, talent apartments and supporting service facilities for hi-tech start-ups.
2. The construction of Special Zones should adhere to the fundamental principle of “Guidance of Government, Distinctiveness of Policies, Fundamentality of Market and Gathering of Talents”. The construction and operations should follow high standards and be implemented in a centralized, professional, informationized, community-based and international manner.
3. The Special Zones should be equipped with professional technical support platforms, technological financial service platforms and integrated public service platforms. To focus on the development of training and counseling, entrepreneurial investment and financing and intellectual property right transaction services accessible by all entrepreneurs of the city as well as integrated service platforms, such as achievement transformation services, on the municipal level.
4. All Special Zones should establish “Competent, Efficient, International and Professional” special zone entrepreneurial service centers to undertake the specific special zone entrepreneurial incubation services, establish special zone development companies to undertake the specific development, construction, operation and management of the special zones as well as the development of various platforms for technology, investment, financing and agency services.
On the basis of comprehensive enhancement and expansion of the functions, standards and scales of Nanjing’s incubators and centered around the cultivation, development and deployment of regional strategic emerging industries and modern service industries, to be fully dedicated to the development of a group of world-leading special hi-tech entrepreneurial communities (special cluster zones of innovative and entrepreneurial talents). By the end of the “Twelfth Five-Year Plan”, we expect to complete the construction of over 6 million m2 of incubators, accommodate over 10,000 enterprises under incubation and 3,000 graduated start-ups, cultivate 500 hi-tech enterprises and innovative enterprises as well as realize over 10,000 annual patent applications in the Special Zones.
IV. Planning and Layout
The following master plan is drawn up in accordance with the master planning of the city, taking into account the regional resource advantages, industry foundations and development conditions and in pursuance of the principle of “Centralized Planning, Reasonable Layout, Distinctive Features and Supporting Collaboration”:
——To plan and construct Special Zones covering a total area of 20 km2 in Qilin Eco-Technical Innovation Park, the four national-level hi-tech zones (development zones and chemical industry parks), the university cluster zones in Xianlin, Jiangning and Pukou and the planned built-up areas of Yuhuatai and Jianye districts. 1/4 of the gross floor area of such Special Zones will be used for hi-tech start-up incubators, 1/2 for hi-tech start-up accelerators and pilot plants and the remaining 1/4 for talent apartments, hi-tech start-up headquarter bases and supporting facilities.
—— To plan and construct Special Zones with gross floor area of 3 million m2 in Mofan Road Technology Innovation Park and built-up areas in Gulou, Xuanwu, Xiaguan, Baixia and Qinhuai districts through new construction and utilization of existing buildings. 1/4 of the gross floor area of such Special Zones will be used for hi-tech start-up incubators, 1/2 for hi-tech start-up accelerators and pilot plants and the remaining 1/4 for talent apartments, hi-tech start-up headquarter bases and supporting facilities;
—— To plan and construct Special Zones covering a total area of 10 km2 in Luhe district as well as Gaochun and Lishui Economic Development Zones. 1/3 of the gross floor area of such Special Zones will be used for hi-tech start-up incubators, accelerators and pilot plants, 1/3 for graduated hi-tech start-ups industry parks and the remaining 1/3 for talent apartments and supporting facilities.
V. Policy Measures
(1) Support for Construction of Special Zones
1. To grant all Special Zones with municipal-level economic administration authorities and simplify the review procedures. Upon compilation of the detailed regulations and urban designs of the Special Zones led by the respective district governments and approval by the municipal government, the authority for planning and review of projects in Special Zones in Jiangning, Luke, Pukou, Yuhuatai and Qixia districts will be delegated by Nanjing Urban Planning Bureau to the respective district governments with the exception of operational land use and key projects specified by the municipal government. Projects in Special Zones in the remaining six districts will be administered separately by special offices designated by Nanjing Urban Planning Bureau to enable convenient and efficient administration and review.
2. To prioritize the land-use plans for hi-tech R&D in Special Zones. Land and properties for own use can be transferred through bidding, auctioning or listing as industrial land. Land can be supplied through conditioned listing and the transfer contract should clearly prohibit the transfer of the constructed projects. For land acquired by state-owned investment platforms, all land-transfer fees, net of any amount accrued according to the national and provincial regulations, will be refunded to the Special Zone development companies as the municipal state-owned investment equity, which is not entitled to share allotment in five years.
3. All Special Zone development fees, net of the portion not exemptible under regulations, will be refunded to the Special Zone development companies as the municipal state-owned investment equity, which is not entitled to share allotment in five years.
4. Subsidies will be granted for incubators, accelerators, pilot plants and talent apartments constructed in the Special Zones.
5. For professional laboratories, engineering technology centers and inspection centers in strong academic areas of universities and institutes jointly developing professional technology support platforms with the Special Zones, the relevant service fees will be fully subsidized by the municipal and district governments.
6. For municipal and above level incubators and accelerators in the Special Zones, the local retention of business taxes, income taxes, property taxes and urban land-use taxes will be subsidized by the municipal and district budgets within three years from the date of accreditation.
7. For enterprises in the Special Zones graduating from incubation and relocating to different districts, the division of fiscal incomes and taxes should take into account the interests of both parties. The agreed base amount will be refunded in full by the new district to the original district for the first three years and in half for the subsequent three years.
8. Various municipal policies for hi-tech innovation and entrepreneurship in effect will favor the Special Zones, prioritize the relevant arrangements and grant an additional 20% on the basis of various awards and supports. The same entity does not enjoy repeated supports but only the highest support granted.
(2) Support for Entrepreneurship in the Special Zones
9. To establish “Entrepreneurial Fast Lanes” and set up Special Zone service windows at municipal and county/district administrative service centers. To realize “One Stamp for All Authorizations”, provide prioritized and zero-cost services for the registration, venue leasing and human resources and realize a “Barrier-free Entrepreneurial Environment”. The Special Zone entrepreneurial service centers will provide entrepreneurial talents with all-round one-stop entrepreneurial services, including technology services, administration services, agency services, financial services and other relevant and featured services.
10. To allow “Registered Capital of RMB 1” for leading talents starting up their business in the Special Zones with intangible assets such as intellectual property rights and technological achievements
11. For start-ups renting their operation venues in the Special Zones for the first time, the Special Entrepreneurial Zones will grant “Zero-Rental” for two years. For enterprises graduating from incubation and entering accelerators, the Special Entrepreneurial Zones will half their rental for operation venues for two years.
12. For start-ups in the Special Zones, the local retention of the value-added tax paid will be refunded in the three-year incubation period and such funds are dedicated to innovation efforts of the start-ups.
13. Tenant organizations and those providing all kinds of professional and integrated agency services, such as technology transfer, technology services, technology trainings, marketing, patent services, financial management and legal advisory, for start-ups in the Special Zones will be awarded by the municipal and district governments based on their business taxes paid on their service revenues.
(3) Integrated Supporting Measures
14. To allocate at least RMB 200 million every year to establish the “Dedicated Funds for Construction and Development of Special Zones of Nanjing”. The fund will be used mainly for payments of subsidies for the development of Special Zone platforms and the relevant policy incentives.
15. To establish the “Nanjing Angel Investment Fund” with guidance of the municipal budgetary input. The fund will be mainly used for investments in entrepreneurial talents, projects and enterprises in the Special Zones. Various counties/districts and national-level hi-tech zones (development zones and industry parks) should also establish district-level hi-tech financial service platforms supported by angel investment funds, venture capital funds (companies) and technological small loan companies.
16. To establish the municipal intellectual property exchange, engage in relevant transactions and trading, promote the commercialization, capitalization and demutualization of intellectual properties and provide venture capitals with convenient entry and exit channels.
17. To establish “Leading Panel for Construction and Development of Special Municipal Hi-tech Entrepreneurial Communities (Special Cluster Zone of Innovative and Entrepreneurial Talents)” led by the leading municipal officials. The Leading Panel, under which respective offices will be set up, will be administered by the municipal science and technology committee and responsible for centralized coordination and specific implementation of relevant tasks.
18. To include the construction and development of Special Zones as an important aspect in the performance assessment of leading CPC and government officials of districts/counties and hi-tech zones (development zones and industry parks). To conduct forecasting, joint hearing, process follow-up and progress assessment for the industry positioning, construction planning and objectives of various Special Zones to ensure the orderly construction and development of Special Zones.
Program for Attraction of Leading Hi-tech Entrepreneurial Talents
The Program for Attraction of Leading Hi-tech Entrepreneurial Talents is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy and gather a large group of leading hi-tech entrepreneurial talents from home and abroad.
Oriented towards the development of strategic emerging industries and modern service industries as well as the transformation and upgrading of key industries, we expect to attract 3,000 leading hi-tech entrepreneurial talents, including 1,000 returned overseas students, 1,000 Hong Kong, Macau, Taiwan and foreign entrepreneurial talents and 1,000 domestic high-end entrepreneurial talents within five years, starting from 2011.
The target talents of the program are those with Master's or higher degrees, or associate professors or higher titles, and meet one of the following criteria:
(1) Leaders in the relevant science and technology area in the world who have the research achievements with high technology content, broad application, and high market potential.
(2) Owners or main developers of proprietary intellectual property right or the core technology with internationally advanced and domestically leading research results of great market potential and possibility of industrial production.
(3) Having independent start-up experience in China and beyond. Familiar with hi-tech industries and able to bring technology, projects, funding, and investment to start business in Nanjing.
Those meet following qualifications will be considered immediately:
(1) Member of Chinese Academy of Sciences, Chinese Academy of Engineering, professionals included in the national “The Recruitment Program of Global Experts” or people listed in Jiangsu “Innovative and Entrepreneurial Talent Program”.
(2) Technical and management talents with middle-level or above managing experience in Fortune 500 companies or senior professional position in China’s top 500.
(3) Scholars and specialists with associate professor title or above in established universities and research institutes of other regions and countries.
(4) Professors and researchers in “985” and “211” Universities or Nanjing local universities and research institutes.
Exceptions can be made for other outstanding talents.
III. Entrepreneurial Approaches
Talents can start business in the special community of technology start-up (special cluster of innovative and entrepreneurial talents), hi-tech zone, development zone (Industrial Park, Techno Park and Innovative Blocks) and various incubators of technology enterprises in the following ways:
Leading entrepreneurial hi-tech talents from home and abroad can start business independently in Nanjing, or they can invest their technological results and capital in a joint venture, which they jointly establish with other private funds.
Leading entrepreneurial hi-tech talents can serve as project manager or higher-ranking managers in local companies holding shares or options.
IV. Supporting Policies
The start-up projects selected after review process will be further divided into key projects and regular projects.
1. Key projects will be provided with the start-up fund of RMB 2 million, working space of no less than 100 square meters and a talent apartment of no less than 100 square meters, rental-free within 3 years. According to the requirements of the project, they are entitled to start-up investment of no less than RMB 3 million and loan guarantee of no less than RMB 3 million.
2. Regular projects will be provided with start-up fund of RMB 1 million, working space of no less than 100 square meters and a talent apartment of no less than 100 square meters, rental-free within 3 years. According to the requirements of the project, they are entitled to start-up investment of no less than RMB 1.5 million and loan guarantee of no less than RMB 1.5 million.
3. Technology results can be transformed into capital stock no higher than 70% of the registered capital. In case of investment increase, there is no limitation to the proportion of shares transformed from technology results. When applying for the Business License for Legal Person, the business legal person qualification and management qualification can be registered separately.
(2) Scientific and Educational Support
4. Talents from universities and research institutes who start a business in Nanjing will retain their previous academic position and professional titles within three years. We will make arrangements for them in Nanjing or help them return to their original organization after 3 years.
5. We will coordinate universities and research institutes in Nanjing to spare 50 posts of professors and researchers for intended and qualified talents.
6. We will integrate library materials, research platforms and public technology service platforms of Nanjing's universities and institutes and give access to the selected talents. Subsidies will be provided for incurred cost.
7. Innovation and entrepreneurship mentor group will be established. Academicians of CAS and CAE will sit in the innovative mentor group. Successful entrepreneurs and technology entrepreneurs will also be the enterprising mentor group members.
(3) Financial and Taxation Support
8. Venture capitals invested for over two years will be rewarded with 1% of the total investment volume. For those experiencing losses, risk compensation worth 30% of the actual investment losses will be provided.
9. Loan guarantee companies will be subsidized with 2.5% of the annual accumulative amount guaranteed.
10. IPR mortgage loans of RMB 0.5 million, 1 million and 2 million will be granted in accordance with the IPR assessment.
11. Technology insurance premium subsidy, which is 30%-50% of the premium, will be provided.
12. The local retained portion of the corporate income taxes would be totally refunded to the enterprises in the first 3 years since the companies make profits.
13. The selected talents will be treated as Nanjing citizens without restrictions when purchasing their first residential housing for their own dwelling. The local retained part of the personal income taxes would be totally subsidized in the first 5 years since the enterprise is registered.
14. The imported research equipment that conforms to the policy regulations and a reasonable amount of personal daily necessities will be exempted from import taxes or given full subsidies.
4. Supportive Living Services
15. The selected talents, their spouses and children will be offered the Nanjing Blue Card, a card providing them citizen privileges and other special policies as follows:
① The selected talents from Hong Kong, Macao and Taiwan as well as foreign countries will obtain residence endorsement or permit immediately and eligible foreigners will immediately obtain the Foreigner's Permanent Residence Card.
② Those selected are entitled to supplementary medical insurance and free physical checkup and recuperation services. Their spouses and children will enjoy with themselves VIP Green Channel Services in designated hospitals.
③ Education in public schools in their neighborhood will be offered without either examination or charge to the school-age children of the selected; if the children really need to attend schools in another neighborhood, it will be properly handled by competent education authorities without any charge. For those children of the age for preschool education, they will be arranged to attend local public kindergartens. Tuition fee for senior high school students will be reduced or exempted. Students attending international schools or classes will be subsidized with average per student expenditure for public school students.
④ Those holding valid overseas driving licenses can directly apply for China’s Motor Vehicle Driving License.
V. Organizational Support
(1) Under the leadership of the Municipal Leading Group for Talent Team Building and Scientific and Technological Innovation, we will institute the Program Office for Attracting Leading Entrepreneurial Hi-tech Talents. The Office, placed within the Municipal Bureau of Human Resources and Social Security, will be in charge of overall coordination and specific implementation of the program.
(2) The Municipal Leading Group for Talent Team Building and Hi-tech Innovation will conduct regular examination and assessment over task fulfillment in all districts, counties, departments and techno parks, and in this regard the veto-by-one-vote system will be employed.
(3) A program web site for attracting leading entrepreneurial hi-tech talents will be set up so as to accept on-line application year round and conduct review at regular intervals. The function of Business Service Center for Attracting Leading Entrepreneurial Hi-tech Talents will be added to the Municipal Talent Service Center to provide one-stop and zero-charge services.
(4) We will work out a system to tie municipal, district, county and department leaders with those selected talents to guarantee services.
(5) The Municipal Leading Group for Talent Team Building and Hi-tech Innovation is responsible for the interpretation of this document. If there should be any deviation from this document in previous ones, this document shall prevail.
(6) Detailed implementation measures for this document will be compiled separately.
Program for Cultivation of Hi-tech Entrepreneurs
The Program for Cultivation of Hi-tech Entrepreneurs is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy and cultivate a group of piloting and leading hi-tech entrepreneurial entities.
By 2015, we expect to cultivate 200 leading hi-tech entrepreneurs in the hi-tech or modern service sectors who can create innovative technological approaches, business models and new industrial landscapes.
II. Program Candidates
The candidates of this program should be included in national, provincial and municipal talent programs. Additionally, they must meet the following requirements:
(1) The candidates should be equipped with global perspective and sustainable innovation capacity, possess intellectual property rights for key technologies, and have gained cutting-edge technological achievements domestically and aboard;
(2) Candidates' projects should have broad market prospects and preliminary requirements for mass production and commercialization are met.
Those listed in the national “The Recruitment Program of Global Experts” and the “Program for Attracting Leading Entrepreneurial Hi-tech Talents” of Nanjing will be chosen with priority.
III. Cultivation Measures
(1) No less than RMB 10 million loan guarantee will be provided to companies owned by the 200 leading hi-tech entrepreneurs with inadequate liquid capital during the commercialization process and subsidies on interest payment will be provided according to the repayment amount and benchmark interest rate of bank loan in that year; if venture capital is introduced, 30% to 50% of that amount will be allocated from the municipal venture capital as shares to the specific project; business premises rental will be exempted in the first two years for those included in the Enterprise Accelerator or Intermediate Test Base. First two years is rental-free in the Enterprise Accelerator or Pilot Test Base.
(2) According to the national preferential tax policies, the corporate income tax is 15% for high and new technology enterprises while 25% for others. For newly-operated hi-tech enterprises before identification and designation as high and new technology enterprises enjoy 15% income tax and the balance will be subsidized by the local fiscal budget.
(3) In allocating all sorts of municipal industrial and hi-tech expenditures, companies owned by the 200 leading hi-tech entrepreneurs will be prioritized through separate consideration and review. For those taking on provincial and national special projects, each will be awarded a prize equivalent to the financial support from superior authorities.
(4) RMB 200,000 to one million will be provided as financial assistance to those who build municipal “Three Stations and Three Centers”, and for those who build provincial and national “Three Stations and Three Centers”, each will be awarded a prize equivalent to the financial support from superior authorities.
(5) A catalog of independent innovation products will be documented. Systems will be put in place to ensure that the products are custom made for the government and first purchased and used by the government; if any such product participates in bid for purchasing by government budget, bonus points will be granted in bid assessment.
(6) The selected talents, core members of corporate teams, and leading hi-tech talents will be treated equal to Nanjing citizen. Since the day of being selected or recruited, the amount of local retained personal income tax will be refunded in total in the first five years
(7) The system of One Profile for One Person and One Policy for One Company will be adopted. Successful and hi-tech business leaders and entrepreneurs will be invited to be mentors of start-up businesses. Moreover, well-known consulting institutions and hi-tech service institutions will be employed to provide professional services.
(8) The full amount of training and transportation expenses will be supported for those selected attending entrepreneurship training courses domestically and aboard.
IV. Organizational Support
(1) Under the leadership of the Municipal Leading Group for Talent Team Building and Scientific and Technological Innovation, the Program Office for Fostering Scientific and Technological Entrepreneurs will be instituted under the Municipal Committee of Science and Technology, and the office is responsible for overall coordination and specific implementation of the work.
(2) We will work out a system to tie municipal, district, county, and department leaders with those selected candidates for the program so as to guarantee services.
(3) Local government and related departments should closely follow up with the operation performance and project progress of the enterprises list in the program in quarterly reports and devote every effort to implement the policy and service work in order to be qualified in annual assessment system.
(4) The Municipal Leading Group for Talent Team Building and Hi-tech Innovation is responsible for the interpretation of this document. In case of discrepancy between the document and the previous ones, this document shall prevail.
(5) Detailed implementation measures for this document will be compiled separately.
Counseling Program for Hi-tech Start-ups to Achieve Public Listing
The Counseling Program for Hi-tech Start-ups to Achieve Public Listing is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy, accelerate the public listing of hi-tech start-ups and enhance the strengths and scales of hi-tech start-ups, and formulate the counseling program for high-tech start-ups to achieve public listing.
1. To focus on the hi-tech start-ups founded by leading hi-tech entrepreneurs and select a group of superior hi-tech start-ups with excellent growth potentials, strong competitiveness and standardized operations within the city. To form the enterprise echelon of “Cultivation – Application – Public Listing” fueled by utilization of the capital markets and strive to realize the public listing of 100 enterprises in multi-tier security markets home and abroad through counseling during the “Twelfth Five-Year Plan”.
II. Cultivation Measures
2. To implement the “Thousand Enterprises Database” program, i.e. select over 1,000 enterprises from all hi-tech start-ups to enter a dynamic pre-IPO enterprise database and implement follow-up services. To update the relevant enterprise data and public listing progresses every 4 years, engage in dynamic management of the pre-IPO hi-tech start-ups through classification and guidance and strengthen the organization of and guidance for these enterprises.
3. To actively expand channels for hi-tech start-ups to acquire financing from capital markets. To strongly promote the pilot of “Agency Share Transfer System” and support the inclusion of Nanjing Hi-tech Development Zone in the pilot parks for listing under the Agency Share Transfer System. To provide non-public hi-tech enterprises with excellent growth potentials with wider channels for investment, financing and share transfer and enable listed companies to enter Growth Enterprise Market and SME Market through market-transfer mechanisms.
4. To provide policy support for land-use of pre-IPO enterprises. In the IPO process, enterprises may realize compensated use of privately-owned land allocated through leasing in the primary market. The land transfer formality can be post-registered after successful public listing. Undue leasing expenses can be used to off-set land transfer fees. To prioritize projects with the need for financing through public listing in the land-use quota arrangements and accelerate the relevant procedures for them.
5. To prioritize support for the development needs of pre-IPO enterprises. To prioritize the project review and approval of investment projects of pre-IPO enterprises. To prioritize the recommendation of hi-tech projects and key technology transformation projects, seek various preferential government policies and offer local subsidies for dedicated government-debt funds. Registration and evaluation should be administered separately by competent authorities and finished within three working days, with 50% discount on the relevant administrative charges within the municipal authority. To accelerate the processing of various documentary proofs to be issued by the respective competent authorities for the application by the pre-IPO enterprises.
6. To implement policy preference and reduce the listing and financing cost of the enterprises. For enterprises in the pre-IPO enterprise database (including enterprises entering the Agency Share Transfer System), any additional tax arising from shareholding restructuring, auditing and adjustments should be borne by the beneficiary party and the 80% of the local tax retention will be subsidized by the city, local districts/counties of the enterprises and four national-level development parks to all shareholders of the original enterprise in appropriate manners, capped at RMB 20 million. Relevant deed tax exemption issues involved in the restructuring and reorganization of pre-IPO enterprises will observe the “Circular on the Deed Tax Policy for Restructuring and Reorganization of Enterprises and Public Institutions” (CaiShui  No. 175) by the Ministry of Finance and State Administration of Taxation. For transformation of non-monetary assets into equity through valuation and appreciation and transformation of undistributed profit, profit surplus and capital surplus into equity during shareholding restructuring of enterprises entered into the pre-IPO enterprise database, personal income tax should be paid pursuant to the regulations upon filing with the competent tax authorities.
7. Awards for public listing of enterprises. The municipal budget will allocate funds of over RMB 10 million every year and the districts/counties and national-level development zones (industry parks) should allocate appropriate amounts to establish subsidies and awards for the utilization of capital markets by enterprises. Enterprises will be subsidized or awarded in different stages of their public listing progresses. An agency expense subsidy with total amount of RMB 2 million will be granted to each IPO enterprise. For an enterprise of which the actual investment in Nanjing has reached 50% of fund raised through IPO or RMB 100 million, 0.2% of the actual investment in Nanjing, capped at RMB 800,000, will be awarded to the senior management of such enterprise.
8. Strengthen the management and services of agencies and investment fund corporations etc engaging in enterprise public listing services in Nanjing, establish a filing system for agency services and investments of investment fund corporation, under which Nanjing Finance office will act as the authority for processing the filings, provide follow-up services and commend agencies and investment fund corporations providing superior services in the public listing of Nanjing enterprises on a yearly basis. To strengthen the matching of agencies, investment fund corporations and Nanjing hi-tech start-ups and enhance the enterprises’ understanding of the capital market, eliminate information asymmetry, reduce transaction costs for enterprises and accelerate the public progresses through all kinds of trainings, matching and discussions.
9. To actively guide the hi-tech start-ups in the large-scale industrialization stage to complete their industrial chains, realize integration of superior resources in the region and industry and further enhance their scales and strengths through means such as merger and acquisition, overall listing and asset securitization.
III. Service Support
10. To establish “Nanjing Joint Meeting System for Promoting Public Listing of Enterprises”, under which the Standing Deputy Mayor will serve as the chief convener, the responsible Secretary-General of the municipal government will serve as the convener, persons-in-charge of the Finance Office, National Development and Reform Commission, Finance Bureau, State-owned Assets Supervision and Administration Commission, Economic and Information Commission, Science and Technology Committee, Administration of Industry and Commerce, Land and Resources Bureau, State Administration of Taxation, Local Tax Bureau, Environmental Protection Bureau, Commission of Housing and Urban-Rural Development and Human Resources and Social Security Bureau and districts/counties and national-level development zones will serve as members. The municipal Finance Office is responsible for centrally coordinating the specific tasks of providing counseling for Nanjing hi-tech start-ups to achieve public listing, formulating the appraisal system and detailed implementation plans for public listing counseling for Nanjing hi-tech start-ups and conducting annual assessment of various districts/counties and development zones (industry parks and street blocks).
The districts/counties and development zones (industry parks and street blocks) should establish relevant organizations led by their finance offices or concerned departments to develop planning based on the actual circumstances of the region and effectively conduct the organization, coordination and guidance for the public listing counseling for local hi-tech start-ups.
11. Nanjing Financial Development Office is responsible for the interpretation of this program.
Program for Joint Development of Hi-tech Innovation and Entrepreneurial Platforms
The Program for Joint Development of Hi-tech Innovation and Entrepreneurial Platforms is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy, further leverage the strengths of research universities and research institutes in hi-tech innovation resources, clear the channels for transfer and transformation of technological achievements, cultivate hi-tech start-ups and strategic emerging industries, and formulate the program for joint construction of hi-tech innovation and entrepreneurial platforms.
I. Construction Positioning
The districts (counties), hi-tech zones, development zones (industry parks, agriculture parks, creative and cultural parks), science and technology parks and innovation street blocks should, in view of the regional development needs, jointly develop university science and technology parks in Nanjing with selected domestic and international universities through provision of preferential support in land, planning and development of supporting facilities and innovation in work mechanisms. The primary missions of the university science and technology parks are to transform technological achievements, incubate hi-tech enterprises and cultivate and gather innovation and entrepreneurial talents.
The districts (counties), hi-tech zones, development zones (industry parks, agriculture parks, creative and cultural parks), science and technology parks and innovation street blocks should, in view of the regional development needs, center on the municipal strategic emerging industry system, target the high-end links in the industrial chain and jointly develop innovation centers of strategic emerging industries in Nanjing with selected strong and key academic areas of domestic and international research universities and research institutes. The primary missions of the innovation centers of strategic emerging industries are to adopt industry- and market-orientation, realize transformation of strong academic knowledge into technologies, core generic technologies into projects and follow the leadership of forward-looking technologies of the industries.
II. Construction Model
To establish a joint development mechanism between universities and institutes of the districts (counties) and realize optimal allocation of local administrative resources and university scientific and educational resources. The districts (counties), hi-tech zones, development zones (industry parks, agriculture parks, creative and cultural parks), science and technology parks and innovation street blocks, providing resources such as capital and land, and universities and institutes, providing capital and intangible assets, will jointly fund and establish joint-equity enterprises, with the possible introduction of some social capitals. The enterprises established are responsible for the operation of university science and technology parks and the innovation centers of strategic emerging industries.
To encourage the planning and construction of university science and technology parks in pursuance of the innovative approach of “Triple-Zone Convergence and Joint Development” of the university zones, science and technology parks and public communities and the model of “Incubators + Accelerators + Industry Parks”. To encourage the planning and development of innovation centers of strategic emerging industries in pursuance of the model of “industrial technical research institutes + academic enterprises”.
III. Supporting Measures
The requirements arising in the development of university science and technology parks, such as planning and land”, will be centrally planned, decided on a case-by-case basis and catered to in priority by the municipal government.
For university with gross floor area exceeding 50,000 m2 and innovation centers of strategic emerging industries with registered capital exceeding RMB 20 million, the relevant investment and financing platforms of Nanjing should participate with 30% of the registered capital without entitlement to dividends.
Business taxes and enterprise income taxes arising from the newly established university science and technology park management companies and innovation centers of strategic emerging industries will be fully subsidized by the municipal and district (county) governments according to their respective tax retentions within five years from the date of incorporation. Business taxes and enterprise income taxes arising from existing provincial and above level university science and technology park management companies will be fully subsidized by the municipal and district (county) governments according to their respective tax retentions within three years from the date of promulgation of this program.
To rely on universities to provide university science and technology parks and innovation centers of strategic emerging industries with all-around open access to scientific and educational resources such as research facilities, information networks and literatures and subsidize the relevant expenses.
The districts (counties), hi-tech zones, development zones (industry parks, agriculture parks, creative and cultural parks), science and technology parks and innovation street blocks and the partner universities and institutes will jointly dispatch personnel into the university science and technology park management companies and innovation centers of strategic emerging industries. The positions of such personnel can be retained. To provide support for high-end talents attracted with reference to the relevant municipal and district (county) level talent policies.
The municipal CPC committee and government will include the joint development of hi-tech innovation and entrepreneurial platforms by universities and institutes of districts (counties) and their performances in the annual assessment. Concerned municipal authorities are responsible for the centralized planning, establishment of assessment and evaluation systems and implementation of relevant support policies.
Program for Development of Hi-tech Start-up Investment and Financing Systems
The Program for Development of Hi-tech Start-up Investment and Financing Systems is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy, strengthen the integration of technological resources and financial resources and encourage the gathering of financial capital factors to hi-tech start-ups and innovation and entrepreneurial talents.
I. General Approach
1. To seize the opportunity of the development of a pilot city for the comprehensive reform of the national science and technology institutions and turn to the innovations in the technological financial system arrangements and policies for breakthroughs to establish and optimize a diversified and multi-tier hi-tech start-up investment and financing service system that addresses the different stages and characteristics of R&D, start-up and industrialization of technologies. To forge a hi-tech start-up investment and financing mechanism with Nanjing characters that provides “support for innovation and entrepreneurship, promotion for growth and incentives for achievements” through the interaction between financial capital factors and hi-tech innovation and entrepreneurship.
2. To establish and optimize a technological financial service chain integrating equity financing and debt financing, direct financing and indirect financing as well as financing guarantee and risk assurance and establish an integrated investment and financing service platform, an equity investment promotion platform and a property right transaction platform that support the hi-tech innovation and entrepreneurship. To extend support to 10,000 hi-tech start-ups, cultivate 1,000 key hi-tech start-ups and realize the public listing of over 100 hi-tech start-ups through counseling, cultivate and attract a group of leading hi-tech entrepreneurial talents, transform a group of major strategic technologies and proprietary innovative products with domestically leading standards, strengthen a group of key hi-tech industries, develop a group of backbone enterprises and listed enterprises capable of proprietary innovation and strive to develop Nanjing into a pioneering model city for the national “Technology-Finance Integration Pilot Program”.
III. To Establish the Hi-tech Start-up Financial Service Chain
3. To establish hi-tech entrepreneurship start-up (angel) investment funds. The municipal budget should allocate no less than RMB 100 million per annum and the districts/counties and development zones (industry parks and street blocks) should allocate appropriate amounts. The funds will be dedicated to supporting the incubated enterprises in various incubators, in particular the hi-tech entrepreneurial talents, projects and enterprises in the Special Hi-tech Entrepreneurial Communities, through non-repayable subsidies, repayable subsidies, direct equity investment and guiding investment etc based on factors such as the team strengths, technological standards and project prospects of the hi-tech start-ups.
4. To establish hi-tech venture capital funds. To expand the scale of the hi-tech venture capital funds to no less than RMB 1 billion at municipal level and appropriate amounts at various districts/counties and development zones (industry parks and street blocks). The funds will be mainly used for investment in hi-tech start-ups in the startup stage and guiding the establishment of venture capital funds which invest in hi-tech start-ups in the startup stage. For venture capital funds investing in the startup stage, the participation ratio of the guiding funds can be increased to 30%. By 2015, the total scale of venture capital funds and equity investment funds is expected to exceed RMB 50 billion.
5. To encourage venture capital institutions to set up and develop in Nanjing. Equity investment funds newly set up, registered and paying taxes in Nanjing and filed with the competent authorities will be awarded start-up capital subsidies of up to RMB 15 million. Corporation funds with registered capital of RMB 150 million and partnership funds with registered capital of RMB 200 million to 1 billion mainly investing in the startup stage will be awarded start-up capital subsidies of no more than 1% and 0.5% of their capital sizes respectively, capped at RMB 5 million. 80% of the local tax retentions of enterprise income taxes paid by fund corporations and their management companies will be subsidized for the first two years and 40% for the subsequent three years. 100% of the local tax retentions of business taxes paid by fund corporations and their management companies will be subsidized for the first two years and 50% for the subsequent three years. 40% of the local tax retentions of personal income taxes paid by senior management staff of fund management companies will be subsidized. A 5-step progressive personal income tax rate on income in excess of a specific amount, ranging from 5% to 35%, shall be applicable to the natural-person general partners of the partnership equity investment funds involved in executing the affairs of the limited partnerships. A flat personal income tax rate of 20% shall be applicable to the natural-person limited partners not involved in executing the affairs of the limited partnerships.
6. To encourage venture capital institutions to invest in start-up enterprises. To establish the venture capital risk compensation system and realize joint development of the venture capital risk compensation fund by the government and venture capital enterprises pursuant to the principle of “Voluntariness, Equality, Risk Sharing and Reciprocity”. For investment losses suffered by the social venture capital institutions investing in hi-tech start-ups in the startup stage, the maximum compensation ratio for a single venture capital project is 30% of the project’s investment loss, capped at RMB 1 million. Total compensation payable to each individual venture capital enterprise is capped at RMB 3 million per annum.
7. To guide financial institutions to escalate technological credit support. To establish a performance appraisal and reward system for technological credit, guide financial institutions in the banking industry to formulate the medium- and long-term planning and annual objectives for technological credit supply while taking into account the actual circumstances, gradually establish business processes and review mechanisms adapted to the characteristics of small and medium technological enterprises, establish technological branches or dedicated departments for technological credit and escalate the technological credit supply.
8. To further the development of technological banks. To research and formulate policies and opinions that encourage and promote the development of technological banks and establish technological credit risk compensation funds funded by the municipal budget and supported by districts/counties and development zones (industry parks and street blocks) pursuant to the principle of “the contributor gets the benefits”. Losses arising from loans to hi-tech start-ups entitled to receiving the support will be borne by the governments and banks together. Also to establish a loan interest subsidy mechanism for technological SMEs and build technological banks into specialized credit institutions offering innovative mechanisms, services and products exclusively for hi-tech start-ups.
9. To encourage guarantee agencies to undertake financing guarantee for hi-tech start-ups. To optimize the re-guarantee system, further enhance the credit status of guarantee agencies through re-guarantee and effective share the risks undertaken by guarantee agencies for offering guarantees for hi-tech start-ups. Financing guarantee companies offering guarantees for hi-tech start-ups will receive premium subsidy equivalent to 2.5% of their annual cumulative amounts guaranteed. For losses suffered by financing guarantee companies offering guarantees for hi-tech start-ups, 30% of the actual losses net of payments for Unearned Premium Reserve and Unexpired Risks Reserves will be compensated (capped at 1% of the cumulative amount guaranteed by a single guarantee agency).
10. To adequately leverage the guiding role of state-owned guarantee companies. Guarantee companies invested by government budgets or state-owned enterprises should consider hi-tech start-ups as prioritized support and service targets and allocate at least 50% of their guarantees to loans to hi-tech start-ups. To further leverage the role of Nanjing Technological and Innovation Guarantee Management Co., Ltd. (Kechuang Financing), enlarge its capital base and enhance its guarantee capabilities.
11. To accelerate the development of technological small loan companies. To realize comprehensive coverage of provincial and above level development zones and hi-tech entrepreneurial cluster parks by technological small loan companies and gradually expand such coverage to include various Special Hi-tech Entrepreneurial Communities. To continue exploring and expanding the business scope of technological small loan companies, engage in operations such as equity investment, financing guarantee, entrusted loan, bill discounting and loan transfer and enhance the capabilities of technological small loan companies to serve hi-tech entrepreneurship. Technological small loan companies enjoy the same preferential policies for rural small loan companies.
12. To vigorously promote intellectual property mortgage financing. To actively encourage and promote various financial institutions to engage in intellectual property mortgage financing for patents, copyrights and trademarks etc, formulate and promote the rules on intellectual property mortgage financing for hi-tech enterprises and incorporate the intellectual property mortgage financing operations in the technological credit risk compensation system.
13. To establish and optimize the hi-tech start-up credit information system. To establish external review mechanisms for technological finance and gradually bring into play the significant role of hi-tech enterprise credit rating in hi-tech start-up financing.
14. To actively promote technological insurance. To encourage insurance companies to actively engage in technological insurances, innovate insurance products, actively promote insurance policies tailored for hi-tech start-ups, such as hi-tech enterprise product R&D liability insurance, key R&D equipment insurance, business interruption insurance and small loan guarantee insurance, in Nanjing and thus diversify the risks faced by hi-tech enterprises and technological enterprises in R&D and market expansions through insurance. To establish dedicated funds for subsidizing technological insurances to subsidize 30% to 50% of the technological insurance premium based on the insurance policies that the technological enterprises apply. Annual subsidy for each enterprise is capped at RMB 300,000. The technological insurance premiums of enterprises are covered under the research and development expenses of hi-tech enterprises and enjoy preferential tax policies under the relevant regulations.
15. To actively utilize other direct financing instruments to finance the hi-tech start-ups. To vigorously promote and organize hi-tech start-ups to acquire financing through issuance of debt financing instruments, such as short-term financing bills, Medium Term Note (MTN), collective bonds, collective bills and collective trusts and expand the diversified debt financing channels for hi-tech start-ups.
16. To vigorously promote the direct financing by hi-tech start-ups through capital markets. To actively expand channels for hi-tech start-ups to acquire financing from capital markets, lower financing costs of the enterprises and establish a “Fast Lane” for enterprises seeking public listing. During the “Twelfth Five-Year Plan”, to establish a dynamic database of over 1,000 pre-IPO hi-tech start-ups, form the enterprise echelon of “Cultivation – Application – Public Listing” fueled by utilization of the capital markets and strive to realize the public listing of over 100 enterprises in multi-tier security markets home and abroad through counseling during the “Twelfth Five-Year Plan”.
IV. To Establish Hi-tech Entrepreneurial Investment and Financing Platforms
17. To establish a financial service center for hi-tech entrepreneurship. To rely on the municipal technological achievement transformation service center, enrich and strengthen its financing service functions, establish online express windows, financing service hotlines and on-site service lobby for hi-tech start-up financing, establish a hi-tech start-up financing expert database, realize functions such as centralization of information, processing of financing needs, development of credit information systems, provision of financing solutions and matching with financing institutions and therefore forge an integrated service platform for hi-tech entrepreneurial investment and financing which provides hi-tech start-ups with all-round full-process investment and financing services.
18. To establish the hi-tech entrepreneurial investment group. To adequately leverage the composite financial strengths of Zijin Investment and establish the municipal hi-tech entrepreneurial investment group centered around Zijin Investment and in association with various other capitals. To forge an integrated professional platform for hi-tech entrepreneurial investment providing a comprehensive array of services, including venture capital investment, financing guarantee, small loans, fund raising and management.
19. To develop a comprehensive asset and equity transaction market. To integrate Nanjing’s resources in the asset and equity market and technology market, establish the Nanjing United Asset and Equity Exchange, promote the establishment of the regional over-the-counter transaction market of non-public hi-tech enterprises, provide comprehensive financial services, such as equity transfer transaction, private offering (equity financing) transaction, technological property right transaction and private equity placement transactions, for hi-tech start-ups and transformation of technological achievements and foster resources for public listing on the Shanghai-Shenzhen Main Boards, Growth Enterprise Markets and Three New Boards.
V. To Strengthen Support for Hi-tech Entrepreneurial Investment and Financing Services
20. To establish the “Leading Panel for the Development of the Municipal Hi-tech Entrepreneurial Investment and Financing System”, in which the responsible official of the municipal government will serve as the leader and persons-in-charge of Finance Office, Science and Technology Committee, Finance Bureau, National Development and Reform Commission, Economic and Information Commission, State-owned Assets Supervision and Administration Commission, Administration of Industry and Commerce, Land and Resources Bureau, State Administration of Taxation, Local Tax Bureau and People's Bank of China Nanjing Branch will serve as members, to coordinate and resolve major issues arising from work.
21. To escalate budgetary input into the hi-tech entrepreneurial investment and financing and optimize the positive incentive mechanism for the hi-tech entrepreneurial investment and financing. To integrate various technological development funds to form a stable growth mechanism for budgetary input into the hi-tech entrepreneurial investment and financing at the municipal, district (county) and development zone (industry park and street block) levels. To innovate the model of budgetary support for technological finance, establish and optimize various administrative measures for fund usage, form fund leverage and rotational development mechanisms and improve the effectiveness of fund usage.
22. To establish an assessment mechanism for hi-tech entrepreneurial investment and financing. To adequately motivate the initiatives of various parties, optimize the operation mechanisms, standardize service procedures, specify the responsible departments for all service processes and ensure the timely implementation of the development of the hi-tech entrepreneurial investment and financing and various supporting incentive policies and measures.
23. The districts/counties, development zones (industry parks and street blocks) and concerned departments should also establish effective work mechanisms and foster a vertically and horizontally integrated and integrally connected work structure.
Program for Gathering High-end R&D Institutes (Attraction of R&D Institutes of Global 500 and Top 500 Chinese Enterprises)
The Program for Gathering High-end R&D Institutes is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy, accelerate the gathering of a group of R&D institutes of renowned domestic and international enterprises and the clustering of high-end industries and build Nanjing into an international R&D city and the No. 1 choice for global R&D service outsourcing with the greatest development potential and significant influence.
This program targets the independent or dependent corporate R&D institutes (hereinafter referred to as “R&D Institutes”) established in Nanjing by enterprises ranking among the Global 500 or Top 500 Chinese Enterprises over the past five years to engage in the technological innovation related to the development of Nanjing’s predominant industries.
R&D Institutes established in Nanjing should have fixed workplace, apparatuses and equipment, conditions for scientific researches, clear areas of R&D and R&D projects. The R&D expenditure of an independent corporate R&D Institute should account for more than 40% of the total annual revenue and the number of R&D staff should not be less than 80% of the total headcount of the institute. The R&D expenditure of a dependent corporate R&D Institute should account for at least 6% of the total corporate sales revenue and the number of full-time R&D staff with bachelor and above degrees and directly involved in the R&D activities should be 10 and above. In addition, the R&D investments of R&D Institutes of a Global 500 enterprise and a Top 500 Chinese enterprise should be above USD 5 million and RMB 20 million respectively. The R&D investments threshold for software and information service industry R&D Institutes are above USD 2 million and RMB 8 million respectively.
Independent and dependent R&D Institutes of Global 500 enterprises that are newly attracted will be awarded a one-off of RMB 5 million and a one-off RMB 2 million respectively. Independent and dependent R&D Institutes of Top 500 Chinese enterprises will be awarded a phased RMB 5 million based on their investment amounts (awarding no less than RMB 2 million for the first year) and a one-off RMB 1 million respectively. An additional one-off RMB 2 million will also be awarded for the simultaneous introduction of the relevant industry operations along with the independent R&D Institute. The aforementioned awards will be financed by the municipal and district/county governments (development zones) in equal proportions. Exceptionally significant R&D institutes and their industry structures can be implemented on a case-by-case basis.
For independent R&D institutes leasing R&D workspaces, the local district/county governments (development zones) should offer preferential rental policies for four years, including “zero-rental” for the first two years and halved rental for the subsequent two years. To plan and construct international enterprise R&D parks in Qilin Eco-Technical Innovation Park, Jiangning, Pukou, Lishui and Gaochun. The need of independent R&D Institutes of Global 500 and Top 500 Chinese enterprises for construction of R&D bases and land required for the local transformation or industrialization of certified technological achievements should be prioritized in the additional municipal land-use quota every year. The land-transfer price should equal the minimum reserve price of industrial land. Land can be transferred through bidding, auctioning or listing as industrial land. Land can be supplied through conditioned listing and the transfer contract should clearly prohibit the transfer of the constructed projects.
Newly attracted R&D Institutes will be awarded based on the actual tax retentions at municipal and district levels in first three years for project R&D and attraction of innovative talents. To encourage the application for accreditation of hi-tech enterprises or software enterprises to enjoy the relevant preferential policies. Preferential policies for R&D Institutes within the municipal administrative authority will be automatically enjoyed upon such accreditation.
A one-off additional investment of USD 5 million or RMB 30 million or above in the expansion of any independent R&D Institute already set up in Nanjing is equivalent to the attraction of a new R&D Institute and may enjoy the relevant policies. Dependent corporate R&D Institute of Global 500 of Top 500 Chinese enterprises transforming to independent corporate R&D Institute will be awarded a one-off RMB 2 million and RMB 1 million respectively. The aforementioned awards will be financed by the municipal and district/county governments (development zones) in equal proportions.
Senior technical and managerial talents of attracted R&D Institutes with annual income above RMB 300,000 will be regarded as Nanjing residents when purchasing commercial house for their own accommodation and not be subject to limitations. Such talents will be awarded the full amounts of the municipal and district tax retentions of their personal income taxes for the first two years and half amounts for the subsequent two years. Eligible top talents and leading talents attracted will enjoy the relevant policies under talent programs of Nanjing.
To encourage the patent applications by R&D Institutes to enjoy the relevant subsidy policies of Nanjing and reward R&D Institutes and individuals with outstanding contributions in the area of intellectual property rights. The local district/county governments and industry park platforms of the R&D Institutes should provide supporting funds for patent industrialization projects implemented locally by such R&D Institutes as well as the successful applications for national, provincial and municipal hi-tech development programs by Nanjing enterprises and R&D Institutes. In the event of intellectual property right disputes or infringements encountered by the R&D Institutes, the municipal intellectual property right protection authorities should strengthen the law enforcement and protect the intellectual property rights of the R&D Institutes in accordance with laws.
To encourage R&D Institutes to engage in various forms of industry-academy-research cooperation with Nanjing research institutes and universities and award RMB 500,000 – 2 million to accredited achievements of the R&D Institutes’ technology transfer and industrialization efforts in Nanjing. To encourage R&D Institutes to open and share their laboratories, testing bases and various technology service platforms, support the incorporation of the aforementioned into Nanjing’s large apparatus and equipment collaboration and sharing network and provide appropriate subsidies according to the regulations. To award RMB 500,000 – 1 million to joint platforms, such as joint R&D centers and international cooperation alliance for industrial innovation, developed by R&D Institutes and Nanjing enterprises as well as participation in the formulation of international technical standards receiving approval. To award RMB 300,000 – 500,000 to R&D Institutes accredited by provincial and above level technological competent authorities. The aforementioned awards will be financed by the municipal and district/county governments (development zones) in equal proportions.
To establish entry-exit fast lanes for technical and managerial staff of the R&D Institutes and provide convenient and speedy clearance services and visa services for inbound and outbound staff of the R&D Institutes. Foreign senior management and R&D personnel of accredited R&D Institutes who need enter or leave Nanjing on emergency will be considered separately and temporarily enjoy express invitations and visa on arrival. The custom clearance, inspection exemption and testing and inspection formalities for imported prototypes, experimental equipment and apparatuses and new product testing of the R&D Institutes for R&D purposes will be prioritized by the custom, commercial inspection and public security authorities and completed within three working days in principle.
The municipal science and technology committee will work with concerned municipal authorities on the accreditation and filing of the registered R&D Institutes. To encourage various departments and districts (counties) to actively formulate the relevant implementation measures, enthusiastically attract R&D Institutes and promote the development of the R&D Institutes in accordance with their actual circumstances, the relevant national, provincial and municipal policies and Nanjing’s spatial layout and planning for strategic emerging industries.
The municipal science and technology committee and concerned municipal authorities are responsible for the interpretation of this program, which comes into effect from the date of promulgation.
Program for Development of Proprietary Intellectual Properties
The Program for Development of Proprietary Intellectual Properties is developed to implement key measures of the “Talent-led Technological Entrepreneurship and Pioneering in the Development of Systems and Parks” strategy, vigorously implement the intellectual property strategies and comprehensively enhance Nanjing’s capabilities in creating, utilizing, protecting and managing intellectual property rights.
I. Fundamental Approach
To take intellectual property strategy as the core strategy of the development of an innovative city, fulfill the potentials of scientific and education resources, motivate innovation and entrepreneurship and form lawful protection. To focus on enhancing the public awareness and cultural atmosphere of intellectual property rights and the society’s capabilities in creating and utilizing intellectual properties, establish comprehensive management systems, law enforcement systems and talent cultivation systems for intellectual property rights and thoroughly implement the five major projects to develop a strong city of intellectual property.
By 2015, the total numbers of applications for patents and invention patents are expected to reach 80,000 and 30,000 respectively. The total number of authorized patents and invention patents are expected to reach 40,000 and 10,000 respectively. The number of registered software copyrights and integrated circuit layout designs are expected to reach 20,000 and quadruple the main indicators on the basis of the “Eleventh Five-Year Plan” values. To rank among the top Chinese cities and rank No. 1 in the province in terms of invention and patent ownership per 10,000 people. The number of intellectual property right model enterprises and the number of enterprises with at least 100 patents are expected to reach 400 and 100 respectively. To implement 500 major patented technology industrialization projects, establish 20 patented technology industrialization model bases and 10 intellectual property right training bases and cultivate 100 high-end professional intellectual property talents, 1,000 intellectual property engineers and an enterprise intellectual property workforce of 10,000.
III. Policy Measures
(1) To Implement the Project for Creating and Cultivating Intellectual Properties
1. The domestic invention and patent application fees and substantive examination fees of enterprises, public institutions and natural persons should be fully subsidized. Application fees for utility model patents and design patents will enjoy a fixed subsidy. Software copyright registration fees and application fees for integrated circuit layout designs will enjoy a fixed subsidy.
2. Universities with over 100 authorized inventions and patents every year and enterprises and research institutes with over 20 authorized inventions and patents every year will be subsidized for the first three years of invention and patent maintenance fees. Enterprises with over 100, 50 and 30 authorized inventions and patents will be subsidized respectively. Accredited Nanjing intellectual property right model enterprises qualified from cultivation will be subsidized.
(2) To Implement the Project for Promoting Utilization of Intellectual Properties
3. To implement 100 major patent industrialization and major patented technology re-development projects every year and projects with significant outcomes will be subsidized up to RMB 1 million.
4. Accredited patented technology industrialization model bases will be awarded a one-off subsidy of up to RMB 1 million. Accredited national patented technology industry bases will receive a one-off award of up to RMB 2 million.
5. Enterprises and public institutions establishing international standards, national standards or industry standards with core patented technologies will receive a one-off award.
6. To support a group of industry and enterprise projects for development and utilization of intellectual property information. Each project will be subsidized by up to RMB 500,000.
7. To incorporate the intellectual property mortgage financing loans of financial institutions into the hi-tech credit risk compensation system. To explore the establishment of the intellectual property exchange and forge Nanjing’s position as the regional center for intellectual property trade.
(3) To Implement the Project for Strengthening Intellectual Property Right Protection
8. To optimize the joint meeting system for administrative enforcement and judicial protection of intellectual property rights and formulate and promulgate a series of policies and legislations, including the “Nanjing Regulations for Protection and Promotion of Intellectual Properties” and “Measures for Administrative Enforcement of Patents”
9. Sponsors and competent reviewing authorities of major international events, such as large exhibitions and YOG, and major project investment involving intellectual property rights should work with the administrative authorities for intellectual property right to establish review and protection systems.
10. To provide certain fund support for accredited intellectual property right protection model areas and model street blocks committed to “properly authorized products”.
(4) To Implement the Project for Optimization of Intellectual Property Management
11. To include the intellectual property right indicators in the performance assessment system for leading officials of districts/counties, development zones, special hi-tech entrepreneurial communities and state-owned enterprises and public institutions and the appraisal indicator system for the evaluation and promotion of professional titles for professional technical personnel.
12. To regard the capabilities in creating and utilizing intellectual properties as key indicators in the accreditation, evaluation, review and acceptance of hi-tech programs, hi-tech enterprises, engineering technology R&D centers, enterprise technical centers and technological achievement awards etc.
13. To establish the municipal intellectual property service center and award agency service organizations for significant growth in the volume of patent application agency services.
14. To establish the patent administrative enforcement team and intellectual property rights protection and legal aid center. To establish a growth mechanism for the dedicated strategic fund for intellectual property of Nanjing, under which the growth rate will follow that of the number of authorized inventions and patents in the preceding year.
(5) To Implement the Project for Cultivation of Intellectual Property Talents
15. To add intellectual property related courses to the trainings for civil service and CPC Party School officials.
16. To provide certain fund support for accredited intellectual property training bases and internship bases.