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Press Release for May 21, 2019 Media Briefing by the Shanghai Municipal People's Government

May 22, 2019

The Information Office of Shanghai Municipality held a press conference on May 21. Vice Mayor Wu Qing introduced the main progress in building Shanghai into a science and technology innovation center with global influence over the past five years. Leng Weiqing, director of the Municipal Talent Office, Zhang Quan, director of the Municipal Science and Technology Commission, Peng Song, executive deputy director of the Construction Office for Promoting Shanghai into a Science and Innovation Center, Rui Wenbiao, director of the Municipal Intellectual Property Office, Qiu Wenjin, deputy inspector of the Municipal Development and Reform Commission, and Zhang Ying, chief engineer of the Municipal Economic and Information Commission attended the press conference and jointly answered questions from reporters.

I Major Progress and Achievements in Shanghai’s Construction towards Scientific Innovation Center in the Past Five Years

In 2014, General Secretary Xi Jinping gave Shanghai an important instruction to “accelerate its march to a science and technology innovation center with global influence.” Over the past five years, Shanghai has, in accordance with the requirements set by the CPC Central Committee, thoroughly implemented the innovation-driven development strategy and accelerated the construction of a science and technology innovation center with global influence. Generally, the construction work has achieved a series of substantive breakthroughs and major achievements through outlining the main tasks and laying the foundation.

In terms of serving the major national strategies, Shanghai has made important contributions to the six major scientific and technological achievements listed in the Party's 19th Congress report, including Jiaolong deep-sea manned submersible, Tiangong-1 Space Laboratory, Beidou satellite navigation and positioning system, the Five-hundred-meter Aperture Spherical Radio Telescope, Quantum Science Satellite Mozi (Micius) and the homegrown large passenger plane the C919.

On the world's scientific and technological frontier, Shanghai has begun the construction of the world’s largest, most versatile and most powerful photon science facility cluster in an all-round way. In 2017, the ultra-strong and ultra-short laser device realized 10 beat watt laser amplification output, and the peak pulse power reached a world record. In 2018, the city saw the birth of the world’s first individual cell cloned monkey, and the creation of the world’s first artificial eukaryotic cell with a single chromosome. From 2014 to 2018, Shanghai participated in 11 of the 50 major national scientific projects.

As for achievements in the economic and social areas, Shanghai has witnessed C919, the country’s first self-made passenger jet airliner made its maiden flight and strategic products such as advanced IC packaging etchers are sold overseas. Domestic high-end medical imaging equipment has filled the industry gap and industrial innovations are delivering rising influence.

At present, Shanghai’s total social research and development investment accounts for 4 percent of local GDP, up 0.35 percentage points from five years ago. The number of invention patents per 10,000 population reached 47.5, double that of five years ago. The comprehensive index of scientific and technological progress has always ranked the top two in the country, and the contribution of science and technology to economic development has steadily increased.

Over the past five years, Shanghai has focused on promoting the following areas:

1. Strive to improve the city’s ability of aggregating resources

Firstly, Shanghai has made systematic layout of high-level innovation bases such as Zhangjiang Laboratory. Zhang Jiang Laboratory and Shanghai Brain Science and Brain-like Research Center have been established successively. The city has formed the construction plan for Zhang Jiang National Laboratory, started the construction of high-level innovation institutions and platforms such as Li Zhengdao Research Institute, Zhang Jiang Drug Laboratory, Fudan Zhang Jiang International Innovation Center and Shanghai Jiaotong University Zhang Jiang Science Park. The city also takes active participation in the construction of national laboratories in areas like micro-nano electronics, quantum information and ocean.

Secondly, to build up a cluster of national-level major technology infrastructure facilities.

In the field of photonics, the construction of a number of facilities in the area of hard X-rays, soft X-rays, ultra-strong ultra-short lasers have been completed.

The hard X-ray device is the largest technology infrastructure investment since the founding of People’s Republic of China.

A number of construction projects for technological infrastructure are underway in the fields of life sciences, oceans, and energy, such as protein facilities and translational medical facilities.

At present in Shanghai, a total of 14 major national-level science and technology infrastructure projects have been built or are currently under construction, and it’s leading other cities in the country in terms of the number of facilities and investment value.

Thirdly, to deepen the implementation of national level key technological programs.

Shanghai has been carrying out a number of key projects which are included in the national medium- and long-term program for science and technology development (2006-2020). It’s also providing research resources for major projects under the 2030 scientific innovation key projects. Currently it has undertaken 854 research national level major research projects.

Eight municipal-level science and technology projects such as preliminary stage study of hard X-ray devices and silicon photonics were launched, and local financial investment has exceeded 4 billion yuan.

2. Continued efforts around core technologies and bottleneck areas

First is to take a leading position in terms of integrated circuit innovation. In the circuit design field, the research and development capabilities of some enterprises have reached the 7 nanometers level, and the market share of Unisoc in the mobile phone baseband chips currently ranks third in the world.

In the manufacturing field, Semiconductor Manufacturing International Corporation (SMIC) and Shanghai Huahong Integrated Circuit Co are taking the top two positions in terms of sales volume, and they have achieved mass production of integrated circuit manufacturing using 28 nm process, and they have completed preliminary research work for the manufacturing technique using 14 nanometer process.

In the field of equipment materials, the Advanced Micro-Fabrication Equipment Inc and Shanghai Micro Electronics Equipment (Group) Co Ltd have been taking the leading position in the country, and their strategic products such as etching machines and lithography machines have reached or are already on par with the international advanced level.

In 2018, the sales volume of Shanghai’s integrated circuit industry reached 145 billion yuan, accounting for one fifth of the total sales in the country.

Second is to accelerate the research and development and application of artificial intelligence industry technology.

The “Implementation Opinions on Promoting the Development of a New Generation of Artificial Intelligence in the City” was released in 2017. The “Shanghai Artificial Intelligence Research Institute of Shanghai Jiaotong University” and Tongji University’s “Shanghai Independent Intelligent Unmanned System Science Center” were also established.

Microsoft, Amazon, SAP and other internationally renowned companies have set up research institutes in Shanghai. Huawei, Tencent, Alibaba, Baidu, JD and other domestic leading enterprises also launched artificial intelligence innovation platforms in Shanghai. The city also successfully held the 2018 World Artificial Intelligence Conference.

Third is to fully stimulate the research and development of the biomedical industry. The investigative new medicine drug “GV-971” by Shanghai Institute of Materia Medica of Chinese Academy of Sciences for the treatment of Alzheimer's disease has completed clinical trials.

By the end of 2018, 32 new drug entities in Shanghai have been approved by the National Medical Products

Administration under the market authorization holder scheme, which allows research institutions to outsource the productions of pharma to qualified third parties.

United Imaging has received approval for the first domestically-produced integrated PET/MR machine, and the first domestically-made cardiac pacemaker made by Shanghai-headquartered Chuangling Heartbeat Management Medical Devices Co Ltd. The first domestic flow diverter device by MicroPort Scientific Corporation also received market approval.

Fourth is to comprehensively promote the development of strategic emerging industries. Major projects such as the national heavy-duty gas turbines are progressing smoothly, and key core technologies such as commercial aviation engines have made breakthroughs. Shanghai is first to establish a demonstration project for the application of kilometer-scale high-temperature superconductivity tapes to break the international monopoly. The number of new energy vehicles in the city is nearly 250,000, ranking first among global cities. The Tesla “Super Factory” project started construction in Shanghai.

2. Strengthening the system supply for science and technology innovation center construction.

First is to concentrate on fields in which the state authorized Shanghai to take the lead. The 10 reform measures that the State Council authorized Shanghai to take the lead to pilot in 2016 have been basically established. A number of reform initiatives that can be replicated and promoted have been formed, including the overseas talent permanent residence convenient service system and the angel investment tax system. Of the two batches of 36 measures approved by the State Council, 9 are Shanghai experience, accounting for 1/4 of the total.

Second is to promote the local system reform for the science and technology. More than 70 local supporting policies have been issued, involving more than 170 reform initiatives. This year, the “Opinions on Further Deepening the Reform of the System of Science and Technology and Strengthening the Engine Role of Shanghai as a Science and Technology Innovation Center” (that is, the “Article 25” of the Science and Technology Reform) was issued. In addition, we will take the lead in exploring and optimizing the construction management system of the Science and Technology Center and establishing the “four-in-one” Shanghai Promotion Office for Science and Technology Center Construction.

3. Construct multi-level functional bearing area of Shanghai Science and Technology Center

First is to increase the concentration and display of Zhangjiang Science City. The “Zhangjiang Science City Construction Plan” was released. The first round of 73 projects has been fully started, and 32 projects have been completed. At the same time, it plans to promote the planning and construction of about 80 new rounds of key projects such as the research and development building of Zhangjiang Laboratory Headquarters and the Global Sugar Science Research and Development Center of Green Valley. Zhangjiang Science City is advancing toward a world-class science city with obvious scientific characteristics, agglomeration of scientific and technological elements, environmental and humanism ecology, and rich innovative vitality.

Second is to steadily promote collaborative innovation in the Yangtze River Delta region. The “Yangtze River Delta Regional Cooperation Office” was established, and a three-year action plan and key research projects plan were issued. The “Yangtze River Delta Network” function will be utilized to integrate more than 45,000 units of large scientific instruments with a total value of more than 51.9 billion yuan. Explore and promote the “technical innovation vouchers” in the Yangtze River Delta region. By the end of 2018, Shanghai had exported more than 3,300 technologies to Jiangsu, Zhejiang and Anhui, with a turnover of 17.3 billion yuan.

Third is to continuously deepen international scientific and technological cooperation. The establishment of five national technology transfer centers along the “Belt and Road” countries and the launch of the China-Israel (Shanghai) Innovation Park will be carried out. Sino-Russian strategic science and technology cooperation will be deepened. Explore and participate in international science programs in areas such as whole-genome protein tag, primate whole-brain mesoscopic neural connection maps.

4. Construction of a new highland for international talent from near and afar

First is to vigorously gather high-level innovation talent from both home and abroad. Shanghai has introduced “20 measures,” “30 measures” and talent action plan, which focused on implementing talent policies stick to global vision and international standard. The city also took the initiative to compile market-based standard for permanent residence of overseas talent and compile related measures. It handled 1.14 million entry-exit certificates in total, making Shanghai the most popular city in Chinese mainland for foreigners with 215,000 people from overseas working in the city. Shanghai also employed market-based approaches, such as payment assessment, investment assessment and third-party assessment to attract talent. More than 50,000 people from with other provinces, either good or in urgent need, also chose to move to Shanghai every year.

Second is to vigorously push forward the reform of talent development mechanism. Adhering to “decentralizing power,” Shanghai let market participants decide to spur market vitality. Shanghai launched the Rules for the Promotion of Transfer of Scientific and Technological Achievements, which was a law to let scientists have the rights of using, disposing and benefitting from their achievements. The law made it clear that 70 percent of net revenues coming from the transferal of scientific and technological achievements can be awarded to related individuals and their teams. Shanghai also optimized a talent evaluation system based on talents’ integrity, innovation ability, academic influence and social contribution. It was a system taking global standards as references, with a stress on market evaluation and the core function of the employers’ decision, running a trial to let the employers, instead of the government, evaluate talent for their professional certificates.

Third is to continue improve comprehensive environment for talent development. For medical services, some public hospitals and 26 foreign-invested medical centers have signed agreements to offer international medical insurance settlement services, and unify fee standards for patients from home and abroad. For housing, the city has prepared 152,000 units of affordable housing, with 115,000 units in use for an accumulated 100,000-plus people.

5. Establishment of a service network to support mass innovation

First is to accelerate construction of a commercialization system for scientific and technological achievements.

Shanghai has kicked off the construction of 16 functional platforms for information technology, biomedicine and integrated circuits. Shanghai should strengthen the batch of sci-tech parks located in places like Fudan University, Shanghai Jiao Tong University and Tongji University. It supported some quality technology transfer companies, like Umore, C-Incubation and MetaLab.

Second is to improve financial and tax policies to provide further support for startups and enterprises making technological innovation. To promote the setup of a technology innovation board on the Shanghai Stock Exchange which will pilot a registration-based initial public offering system. In an effort to continuously improve Finteck products, 648 new enterprises offering Fintech services with total capital of 4.126 billion yuan were established in 2018, providing a combined credit of 17.89 billion yuan to 3,530 medium and small-sized technology companies. Tax cuts including R&D costs deduction for new and high-tech enterprises and technologically advcanced service companies rose 26.4 percent year on year to 33.4 billion yuan, covering 17,634 firms.

Third is to prompt the involvement of various innovation entities in the city’s effort to build itself into a technology innovation center. On central government-owned enterprises’ side, 22 such companies signed agreements with Shanghai on 20 projects in 2017. On foreign enterprises’ side, 16 opinions on supporting foreign-funded R&D centers to participate in the city’s construction into a science and technology innovation center have been implemented. By the end of 2018, a total of 441 foreign-funded R&D centers were established in Shanghai, the most in the country. On private enterprises’ side, more than 600 maker space incubators have been set up across the city, with over 90 percent of them being funded by social forces. Yangpu District, Xuhui District, Fudan University, Jiaotong University, ShanghaiTech University, Baowu Steel Group and Shanghai Institute of Microsystem and Information Technology have been approved as national level demonstration bases for innovation and entrepreneurship. Shanghai, as a main venue for the national “Innovation and Entrepreneurship” week, held a series of activities successfully in 2017.

Fourth is to further strengthen the effort in implementation and protection of intellectual property rights. The China (Pudong) Intellectual Property Rights Protection Center has been established. Researches have been conducted to prompt the setup of an arbitration and mediation subsidiary of WIPO in Shanghai. A trial international operation (Shanghai) platform affiliated to the state intellectual property rights operation public service platform kicked off its operation. Shanghai Intellectual Property Transaction Center began its trial operation in 2017 and got some 3,200 listings in 2018 with transaction value exceeding 218 million yuan.

II Where to go for the next phase of development of Shanghai’s science and technology innovation center construction

In the next step, Shanghai will continue to fully implement General Secretary Xi’s remarks and guidelines about the city’s construction of a science and technology innovation center and to accomplish three new major tasks assigned by the central government to play a better role in representing the country to participate in international cooperation and competition. First is to considate top-level design and system supply and form a "Shanghai Plan" for integrated circuit, artificial intelligence and biomedicine. Second is to prompt the construction of the Zhangjiang National Science Center at full speed and to get approval for the national Zhangjiang Lab as early as possible.Third is to optimize the Fintech system led by the technology innovation board and to prompt the transfer and transformation of scientific achievements. Fourth is to accelerate the pace to improve the concentration of enterprises in Zhangjiang Science City and boost its profile, and promote the synergy in the development of science and technology innovation in the Yangtze River Delta region. Fifth is to improve the systematic guarantee to ensure the city’s construction of a science and technology innovation center is smoothly carried out.