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Xuhui District’s Construction of the National Entrepreneurship and Innovation Base

Oct 19, 2017

The Shanghai Municipal Government’s Information Office held a press conference on September 21 on Xuhui District’s construction of the National Entrepreneurship and Innovation Base. Following are the highlights:


Fang Shizhong, director (district mayor), Xuhui District

Wang Sizheng, inspector, Shanghai Development and Reform Commission

Fu Guoqing, chief engineer, Shanghai Science and Technology Committee

Chen Shiyan, deputy director (deputy district mayor), Xuhui District


Wenhui Daily: We know that many intellectual property (IP) service institutions are based in Xuhui District. How will the intellectual property rights (IPR) play a role in Xuhui’s construction of the National Entrepreneurship and Innovation Base?

Fang Shizhong: Thank you for naming the most important and special factor in constructing the National Entrepreneurship and Innovation Base. Last year, Xuhui got approval to construct the Caohejing national intellectual property service industrial cluster. The district boasts the most number of IP institutions—more than 150 of them, of which around 20 have become national brand institutions. All these institutions take up more than 60 percent of such entities in Shanghai. So the service resources and institutions are intense in Xuhui.

This year we launched a special policy on IP ahead of all other districts. It has three characteristics. First, it covers patent, trademark and copyright and is the first policy in the city to support the three areas at the same time. Second, it specifies building an IP service market system based on industry development and looks to connect the current IP service with the need to innovate and for the industry to develop. Third, our special policy focuses on using IPR, especially the transformation of the outcome, namely the step of turning into capital, as Party Secretary Han Zheng put it. By completing the public system for IP, the innovation energy can be activated to make profits.

We set out on the key area of IP to support entrepreneurship and innovation construction in the city. We pay special attention to three things: first, to form an IP public service platform in Xuhui. The district now houses the Shanghai Center of Trademark Examination Cooperation under the State Administration for Industry and Commerce of China, the Shanghai Intellectual Property Transaction Center, the Shanghai Intellectual Property Service Center and other functional platforms. Second, we use IP to catalyze major resources in research institutes, colleges and enterprises through governmental introduction, policy guidance and market selection. Entrepreneurs and innovators can coordinate in innovating. We know that they are the main entities for innovation. Third, we encourage people to create value with IP and we support colleges and research institutes to work on patent transfer and licensing. The managing institutes and agencies providing the service will be rewarded. They should be part of the innovation-driven IP service market.

The Paper: Some start-ups and SMEs still face financing difficulty. I would like to know if Xuhui has any matching financial support to help them with this issue.

Fang Shizhong: This is indeed very important in the construction of the base. Deputy District Mayor of Xuhui Chen Shiyan can answer this for you.

Chen Shiyan: Thank you for your concern. Generally speaking financial capital is quite active in the district. There are 650 financial institutions with diverse structure. Venture institutions also total more than 200, including angel investment, venture investment, private equity, financial leasing and third-party payment.

In recent years, our finance has been serving the real economy and has been set out for industrial finance and innovative finance. To promote the benign circle of the regional economy and finance, we have taken three measures on SME financing. First: We encourage and guide SMEs towards direct financing. Currently Xuhui already has such a comprehensive service platform for listing. Through this platform we have a sectioned and differentiated financing storage. Now we have 180-plus enterprises for direct financing on the platform, 107 listed companies and seven companies undergoing the China Securities Regulatory Commission (CSRC) examination and eight others that are under the Shanghai Securities Regulatory Commission. With such storage we are able to better adjust our industrial policies in the region and create a fine listing environment.

Second, we also have a financing platform tailored for SMEs. In recent years Xuhui has contributed more than 100 million yuan (US$15 million) in compensation for loan risks with the purpose of encouraging parks and banks to share the risks and information together, and lower the costs for enterprise financing. The technological financial platform in Caohejing and the mutual-aid chamber of commerce financing platform for example, have accumulated much credit with several rounds of upgrade. More than 700 companies have obtained loans without mortgage or guarantee, totaling 1.8 billion yuan. Average loan for each enterprise has reached about 2 million yuan. These measures have alleviated the intensity for SME financing.

Third, Xuhui has been attracting capital for science and innovation development. A guiding fund of 750 million yuan has been established, focusing on IT, life health, cultural innovation and others. We also have shares in 17 venture capital funds to bring in 6 billion yuan in social capital. To strengthen the support for projects in the early stage, we have set up a special angel investment with a scale of 50 million yuan. In the first stage we give 5 million yuan along with the Caohejing Science and Innovation Center’s 10 million yuan to build an angel investment for start-ups. The enterprises in the incubator will be entitled to the fund. Social capital plays an important role in cultivating the start-ups.

STV: We know that the State Council has approved two batches of entrepreneurship and innovation bases. There are two in Shanghai, one in Yangpu and the other in Xuhui. What are the characteristics and positioning for the one in Xuhui, compared to the other? How will the city support the base construction in Xuhui?

Wang Sizheng: Earlier this September when the NDRC (National Development and Reform Commission) held a news conference on the national entrepreneurship and innovation week, a reporter asked a similar question on how Changyang Valley was different from the Zhongguancun and Shenzhen Bay. I mentioned “three 100-years”. Yangpu is a place where 100-year enterprises, 100-year colleges and 100-year municipal administration gather. Shanghai is where our national industry started while Yangpu has been an important base for undertaking the task. But Xuhui has its own features, too. District mayor Fang has explained a lot and I would like to add something.

The reason why we chose Xuhui was based on “three conversations”. The first conversation is between us and our predecessors. We have inherited the entrepreneurship and innovation spirit for science and technology by excavating the district’s historical value. Xuhui is a good place where talents gather. More than 100 academicians work and live here. If you walk along the 100-year-old Tianyiaoqiao Road or read in the Bibliotheca Zi Ka Wei, you will think of this figure, Xu Guangqi, a person who lived here 400 years ago and started the introduction of Western studies into China. He was one of the origins of Shanghai-style culture as well as a scientist, educator and an expert in agriculture. Xu was one of the earliest to learn, translate and spread western technology and culture. The Bibliotheca Zi Ka Wei he founded was a place for Chinese and western technological and cultural exchange; the Tou Se We Orphanage was the first school for orphans in China. It cultivated children with skills training early, especially Chinese traditional skills. The school was also honored as the cradle for Chinese western oil painting. Famous Chinese artists like Xu Beihong and Liu Haisu all have close connection with this place. The children from this school not only gained the ability to make a living and started their own business through the education, but also turned into masters and won prizes. We chose Xuhui because it has historical residues.

The second conversation is with the universe and the future. We will make the technology service industry stronger to take the high ground in this the campaign for entrepreneurship and innovation. The observatories in Xuhui used to be top in the Far East; meanwhile, the conversation with the universe and the future actually means the technology service through the observatories. So Xuhui has the tradition to develop the technology service, too. More than 120 colleges and institutes, including Jiao Tong University, Fudan University and many joint-venture research institutions, as well as top hospitals, the best resources, can be found in Xuhui. We will join forces to build the technology service industry. Xuhui is among the first intellectual property comprehensive management pilot zones on the national level while the Caohejing industrial park in the district is the demonstration zone to develop IP service on the national level. The positioning for Xuhui is very clear now.

The third conversation is with humans which is an important measure for our development in the future. In the past 30 years, China has shed off its poverty through hard work in the reform and opening up, but for China to grow strong in the future, we will need to depend on wisdom, technology and innovation.

Xuhui has much potential in this respect. As we have mentioned, there are many research reports on humans in the Chinese Academy of Sciences, yet indeed we still understand little about humans. People can live longer now, but we have not developed enough of our brain. As Xuhui has been a municipal base to develop artificial intelligence (AI), we would like to experiment first on the life and health industry. We will expand the life span, which is also an exploration of human potential. This is a part of Xuhui’s positioning, too.

This is my interpretation of Xuhui’s features and positioning in the city. Thank you.

Shanghai Radio: It is known that a weak service system on science and technology is one of the bottlenecks in the commercialization of research findings. Do you think the mechanism of the commercialization of research findings with the service system on science and technology is a core of Xuhui District, and what will the municipal science committee do to support the initiative?

Fu Guoqing: Accelerating the development of the service system on science and technology is an objective requirement in pushing forward scientific innovation, the commercialization of scientific research findings, and deep integration of science, technology and economy. It is also an important initiative to adjust the industry structure and nurture new sources of economic growth.

Just now mayor Fang mentioned that Xuhui District has a very good foundation for developing the service system on science and technology as, on the one hand, there are many high-level scientific research institutes and famous universities in the area, and, on the other hand, there are rich culture and abundant human resources.

Here I want to provide you another piece of information, in 2016 Shanghai gave out 265 municipal science and technology awards, among them Xuhui won 57, or one fifth of the total. On the other hand, there are more than 150 service institutions in Xuhui, including patent and trademark offices, scientific information institutes, which enjoy a high reputation. The Shanghai Science and Technology Committee has pushed forward cooperation on science and technology service and commercialization of scientific research findings with municipal and district departments.

The Shanghai Science and Technology Committee joined in drafting a plan to implement a national demonstration base on the issue in Xuhui. Currently the committee is actively strengthening the coordinated action between government departments and Xuhui, mainly in the following three aspects:

One is to push forward the development of professional service institutions on commercialization of research findings. We will join hands with the Xuhui District government to strengthen supportive measures on the professional service institutions by various means, including setting up platforms, government purchase of services and training of talents, by combining the principles of obeying market rules and guiding the government, so as to accelerate the development of the scientific service industry in Xuhui.

Two is to push forward the coordination and innovation of production, study and research. We will support the joint development of research and development platforms, technical innovation alliances and new type R&D institutions by enterprises, institutions and universities together with other organizations to use market mechanism by application of resources of good quality to integrate the application of new technology, new material and new procedure.

Three is to improve the ability and level of commercialization of research findings. We support the setting up of talent training system in demonstration areas and to channel the advantage of Xuhui to Minhang District. The Shanghai Science and Technology Committee will fully support Xuhui in being a model for the commercialization of research findings by supporting the exploration of transformation models and solving the difficulties during commercialization.

Xinmin Evening News: I would like to know what measures you plan to take in setting up an innovative environment and attracting innovation talent.

Fang Shizhong: Everybody knows that there are two aspects in the construction of Shanghai as a scientific and innovative center of global influence: one is the reform of mechanism and system, another is talent. So in the construction of the demonstration area for the scientific service industry in Xuhui, the focus is on attracting talent. Intellectual property is another key point. We have endeavored to do three things well, let me use three points to elaborate.

First is to supply a large platform for talents to work and realize their dream. We plan to use the platform to support Xuhui in setting up key laboratories, engineering centers and shared research and development facilities. At the same time, we encourage leading enterprises and universities to set up more creative space. So far we have already set up more than 60 such spaces.

Second is to set up an environment that is attractive to talents. We shall have in place good policies to ensure an attractive environment. So we have made and published policies and measures to support the development of the modern service industry in a more modern, high-end and clustered environment in Xuhui. We have also put in place a series of policies on supporting innovation, strategic new industries, and IPR. We hope these policies will be helpful in attracting talents to carry out their work in Xuhui and overcome the difficulties on the road of development.

Third is to provide a good living space and environment for talents. We hope Xuhui can not only provide a big enough innovation platform but also good living conditions, so we published a blueprint on talent during the 13th five-year plan. Meanwhile, we also set up a “Guangqi” action plan on talent development with a five-year plan, three-year action plan and one-year work plan. The Guangqi series of talent development plans covers six areas, including creative talents, doctors, famous tutors and scientific new stars.

For your information, we have set up 2,000 flats for talents along the Huangpu River in Xuhui.

Shanghai Morning Post: Just now Mayor Fang mentioned the implementation plan to set up innovation and entrepreneur space. What development prospects do you envisage for the future?

Fang Shizhong: Thank you for your question. We have specific targets, key points and measures. However, we need to have space to carry them out, so we put forward a plan and layout of space.

Two zones: One is Caohejing Hi-Tech Park which excels in areas of high-end chips and intelligent hardware. We plan to push forward the development of AI as a key area in the park.

The second zone is the healthcare innovation industry zone in Fenglin area, which is about 2 square kilometers. There are eight top hospitals, a group of universities, scientific research institutions and medical institutions inside the area.

Two belts: One belt is on both banks of the Huangpu River which extends 45 kilometers on each side. In Xuhui, the river bank runs for 11.4 kilometers; we will open 8.4 kilometers by the end of the year to the public. Our goal is to set up an excellent river bank in a global metropolis. We will reach the goal by two hands, one is culture and another is scientific innovation. We have set up a media harbor and a financial city, and we are focusing on the construction of the West Bank Intelligent Valley. We hope the area will be a new AI landmark in China.

Another belt is the area along Metro Line 15, which is under construction, linking Caohejing Hi-Tech Park with Zizhu Hi-Tech Park, both of which are of national level. Most of the area is in Xuhui with dilapidated industrial sites. Now we are making innovations to build an innovative corridor along the metro line. Meanwhile, we are planning an AI town in Huajing area. Along the Huangpu River construction covers an area of 3.5 million square meters, and along Metro Line 5, 2 million square meters of area is under construction. So the combined area is 5.5 million square meters. We hope to push forward development with these spaces.

Wang Sizheng: I have a point to add on the construction of the two belts, including the second batch of demonstration bases in Xuhui. Actually we have a lot of resources to support with great potential. For example, there are a lot of top hospitals in Xuhui, and doctors are an important force of innovation in advanced nations in the world. We plan to improve the innovation in the field of healthcare as doctors know patients best, know market value best, and they usually play a key role in innovation of medical equipment and new medicines.