On 21 March 2019 the Pudong Commission for Science, Technology and Economy issued the Management Measures for the Recognition of Pudong ‘R&D Organisation’ status (Pu Ke Jing Wei Gui  No. 1).
The ‘R&D Organisation’ status is a recognition granted to Pudong-based high- and new-technology enterprises (including specific departments responsible for technology and product development or related services) engaged in R&D and experimental development in natural sciences or in emerging and strategic sectors. The status provides financial support, as well as priority and support from local authorities when applying to additional funding programmes, both at the local and the national level.
In order to be eligible, candidates must: (i) be high- and new-technology enterprises (HNTEs) based and paying taxes in Pudong; (ii) have an annual turnover of over 20 million RMB, or more than 100 employees; (iii) the pre-tax super deduction amount for R&D expenses in the previous year must exceed 3 million RMB.
Application calls are published every year (usually in August or September), on the web portal of the Pudong Commission for Science, Technology and Economy.
Although the Management Measures do not specify the benefits obtained by newly-recognised ‘R&D Organisations’, from previous annual calls these seem to be related to:
- Up to 1 million RMB granted to each newly-recognised Pudong district R&D Organisation operating in microelectronics, software, biomedicine, and new energy vehicles (up to 800,000 RMB if operating in other sectors);
- Pudong district R&D Organisations that in the future are recognised as municipal-level or national-level R&D Organisations will receive additional funding (respectively up to additional 2 million RMB and 4 million RMB);
- Newly-recognised R&D Organisations with independent books and accounts, for the first three years will receive a 100% subsidy of the district-level component of value added, income, or profit taxes (reduced to 50% in the three following years);
- Every year, the best performing R&D Organisations will also be eligible to obtain the Key Enterprise R&D Organisation Subsidy Fund under the Pudong District S&T Development Fund (see corresponding factsheet below);
- R&D Organisations are also expected to receive strong endorsement and support by local authorities when applying to other funding programmes both at the local and national level.