Encouragement for Establishment and Development of Foreign-funded R&D Centers Released in Shanghai
ISSUING AUTHORITIES:
Shanghai Municipal People’s Government
DATE OF ISSUANCE：
November 24, 2020
EFFECTIVE DATE:
December 1, 2020
EXPIRY DATE:
November 30, 2025
On November 24, 2020, the Regulations of Shanghai Municipality on Encouraging the Establishment and Development of Foreign-funded Research and Development Centers (“Regulations”) was promulgated by the Shanghai Municipal People’s Government and became effective on December 1, 2020. The Regulations have a five-year term, and will expire on November 30 2025.
The Regulations apply to the establishment and development of three categories of R&D centers:
1) Foreign-funded R&D Centers: institutions set up by foreign investors to engage in research, development and experimental development (including intermediate experiments serving R&D activities) in natural sciences and related fields of science and technology, where the content includes basic research, applied research, product development, etc.
2) Global R&D Centers: global-level R&D centers established by foreign investors that possess exclusively-owned research and development technology platforms, and which undertake key steps where the majority of the process of its global-level R&D projects as well as progress is in sync with comparable global activities.
3) Foreign-funded Open Innovation Platform: innovative form of foreign R&D centers. This refers to a research and development center that promotes project-based cooperation with SMEs and innovation teams to realize co-innovation by providing facilities, equipment, research and development sites and professional guidance and by leveraging the platform’s technology, talent, capital, data and other resources.
For qualified R&D centers satisfying certain accreditation conditions as stipulated in the Regulations, a number of supportive measures may be availed upon including without limitation customs clearance facilitation for cross-border research and development, cross-border financial services facilitation, entry & exit, stay and residence facilitation for talents engaged by the R&D centers, training subsidies and housing security, registration facilitation, environmental assessment and hazardous waste management facilitation, facilitation on land use for R&D purposes, industry-university-research cooperation, participation in government projects, commercialization of scientific and technological findings, protection of intellectual property, funding support as well as tax support, etc.
In conclusion, support for foreign-funded R&D centers not only drives innovation and entrepreneurship among small and medium enterprises at home and abroad, but also becomes an important engine for the high-quality development of foreign investment. Through the implementation of the Regulations, Shanghai will increase its speed to build new ground for opening up its economy with more precise and powerful policy and quality services.
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