Shanghai has in recent years resorted to hi-tech to revitalize the economy. By the end of last year, Shanghai had targeted 442 new and high technological projects for rejuvenating its economy.

These projects involve electronic information, bio-medicine and new materials, making up 68% of the total projects; 270 projects are on advanced international level; 18 are in the lead internationally; 22 are innovative in China; and 92 take the lead in China. Of the total, 318 have started operation with 5.74 billion yuan in sales, 405 million yuan in tax and 1.86 billion yuan in profit for last year.

To gain good results, Shanghai has formulated a series of policies in a bid to create a favorable ambience for transforming technological research results into products. In June 1998, the city promulgated the Regulations on Pushing forward Transformation of New and High Technological Results. A year later, the regulations were modified to cater to new conditions.

The policies pursued by the city encourage acceptance of outstanding Chinese and foreign technological results for development in Shanghai. For instance, an animal transgenosis base was built for a sheep-cloning research group which was invited to Shanghai from elsewhere in China.

Development of autonomous intellectual property technological results is encouraged. Preferential terms and tax exemption are given to these results.

Following these policies, technological elements are permitted to be allocated proceeds from technological results. The Shanghai government encourages technological personnel to run enterprises, allows these personnel to run enterprises on a part-time basis and to be engaged in transformation of technological results on a part-time basis. As a result, intellectuals have begun finding their value in life and many professors and research follows are encouraged to undertake technological innovation with zeal.

Moreover, an organizing system was initiated to endure the implementation of these policies. In June 1998, to couple with the promulgation of these policies, the Service Center for the Transformation of New and High Technological Results was formed. The Center bridges labs and industrial production by implementing these policies, gleaning information, working for financing, and opening up market, etc.

At the same time, investigation on results transformation dynamics is made to ensure the implementation of the policies and find ways and means for solving outstanding problems.

The center has played a principal part in shaping the Shanghai United Network for Risk Investment involving listed firms, monetary bodies and enterprise groups to seek financing for the transformation of technological results. 1.6 billion yuan has been raised from society and bank investment amounted to 510 million yuan.

Shanghai has also grappled with risk investment to solve knotty financing issue for the transformation of technological results. The Shanghai government has decided to allocate 600 million yuan in 3 years as a pilot project on risk investment funding to help solve the inadequate equity problem of technological results transformation. In tandem with risk investment, Shanghai Exchange for Technological Property Rights was created on December 28, 1999.

With preferential policy, consummate organizations and growing capital resources, the transformation of technological results has taken on a new look in Shanghai.