The Zhongguancun Science Park has achieved outstanding progress since the State Council approved their construction plan three years ago, during the National People's Conference (NPC) and the Chinese People's Political Consultative Conference (CPPCC) sessions.
The State Council aims to develop Zhongguancun, China's first independent innovation demonstration zone, into a globally influential technological innovation center.
The science park has been focusing on technological innovation, transforming the development mode, adjusting industrial structures, and maintaining a fast and stable economic growth in accordance with the Outline of the Development Plan for Zhongguancun Science Park (2011-2020). The Zhongguancun high-tech enterprises were estimated to achieve 1.9 trillion yuan ($300 billion) in revenue in 2011, a year-on-year increase of more than 20 percent.
The State Council consented to implement the "1+6" policy in Zhongguancun by the end of 2011. The "1" is to establish an innovation platform in Zhongguancun and the "6" refers to the new policies in disposition, dividend, equity incentives, taxation, research funding and high-tech enterprises accreditation.
The Zhongguancun Technological Innovation and Industrialization Promotion Center was officially established on Dec 31, 2011. The Zhongguancun innovation platform comprises eight administrative offices, including a scientific and technological achievements examination and approval office and a technology finance team. Staff members at the platform include 37 bureau-level and section-level cadres from 19 central government ministries.
Relying on the Zhongguancun innovation platform, the central government ministries have worked with the Beijing municipal government to set up a consultation mechanism. The Beijing municipal government launched consultations with the Ministry of Science and Technology, Ministry of Industry and Information Technology, National Development and Reform Commission, Ministry of Finance, Ministry of Health, and Ministry of Education to develop the Zhongguancun talents zone and emerging industries.
Zhongguancun innovation platform broke its old pattern of allocating resources on the basis of an administrative system and, instead, explored new modes of establishing organization through cross-level and trans-departmental innovation.
Six new policies
——Reform pilot in disposition and right to benefit Universities and research institutes transferred 261 technologies (scientific and technological achievements disposition), with 650 million yuan total revenue in 2011. The technology contract turnover amounted to 189 billion yuan, a year-on-year increase of more than 20 percent.
——Reform pilot in equity incentive As many as 481 companies in the Zhongguancun Science Park adopted the equity and bonus incentives, including 35 companies and institutions affiliated to the central government and 84 listed companies.
—— The experiment in reforming the tax policy for research and development (R&D) expense additional deduction, and staff education expenses pre-tax deduction A number of the 512 companies in the zone benefited from the R&D expense reform, totaling 531 million yuan of additional deductions for added projects. They enjoyed 80.24 million yuan preferential treatment in income taxes in 2011. There are 56 companies benefited from the staff education expense reform, amounting to 48.35 million yuan and 2.5 percent of gross payroll.
——Reform pilot in scientific research fund management As many as 1,235 projects were brought into the pilot in 2011. Beijing municipal scientific projects had 45.6 million yuan of indirect expenses, up 72.8 percent from 2010.
——High-tech enterprises accreditation pilot The Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation jointly issued the guideline to support the pilot. A total of 1,282 companies were accredited as high-tech enterprises in 2011, a year-on-year increase of 20 percent.
Construct a national over-the-counter market under unified supervisions Since Zhongguancun experimented with commissioned stock transfer in January 2006, there are 152 companies taking part, including 102 listed ones. Thirty-six companies have completed or initiated 43 target increments, with a total financing value of 1.9 billion yuan. Their average price/earning ratio reached 22 times. The experiment has effectively promoted enterprise development. The listed companies increased average operating incomes by 28 percent in 2010 and 30 percent in the first half of 2011.
