Shanghai, China 1 Business Incubation (BI) in Shanghai, China (1) The Purpose and Background of BI Policies in Shanghai, China The Torch Programme, implemented since 1988, is a market-oriented program, drawn up as a systematic high-tech promotion measure, for making business application of research results, industrial application products and internationalization of industries with the aim of fostering new high-tech industries. Under the program, "New & High-tech Innovation Center" has been established as incubators for high-tech industries, operating "New & High-tech Development Zones" across the nation. (2) Profile Information About the BI Support Policies of the Government (Central and Local) in Shanghai, China 1) Main Goals of Support for BI: The main goal is to ensure healthy development of BI projects in China, thus promoting business application, industrial development and internationalization of high-tech industries. 2) The Source for BI Support (Organization or Department in Charge): Torch High-tech Industry Development Center, Ministry of Science and Technology Local / regional level: Municipal Science and Technology Commission (Local commission for science & technology) 3) Available Support for the Creation of Incubation Facilities: The Ministry of Science and Technology issued chains of policies and regulations to ignite the engine of science and technology incubation, for instance, Principal Attitude on China Science and Technology Business Incubation in 1994. 4) Available Support for the Operation of Incubation Facilities: Temporary Criteria and Procedure of National Level Science and Technology Business Incubator Approval in 1996, Development Compendium On China Science And Technology Business Incubators In The Tenth Five-Year National Plan and Attitude On Upgrading China Science And Technology Business Incubators Construction In The Tenth Five-Year National Plan in 2001, Attitude On Enhancing The Operation Quality Of China Science And Technology Business Incubators in 2003. 1
5) Available Support for Capital Procurement for Incubation Facilities: Under the China Torch Program, we also manage a fund: Innovation Fund For Small Technology Based Firms. The fund issues CNY 500,000,000 annually to small technology based firms in China. We conglutinate CNY40,000,000 annually to some chosen National Level Science and Technology Business Incubators in China. 6) Available Tax Incentives to Incubation Facilities: Ministry of Science and Technology is cooperating with National Taxation Bureau to study on how to support science and technology business incubators by issuing new policy to decrease taxation. 7) Available Support for the Training of Incubation Managers: Torch High Technology Industry Development Center host a training course annually. And Sub-committee of Science and Technology Incubators attached to the Association of Science and Technology Industrial Parks (Hi-tech Parks) host at least 2 forums annually. 8) Targeted Industries as Incubation Priorities: Not really, technology and science based start-up firms are densely concentrated in the incubators in China. And among all the incubators in China, only those Science and Technology Business Incubators could be rated national level. AT present, some Science and Technology Business Incubators become professional ones on several aspects: bio-tech pharmacy, micro-electronic etc. We have 26 national level software parks besides all the national level incubators. 9) Available Capital Procurement Support for Enterprises Located in an Incubation Facility: Besides the capital issued by the Innofund mentioned above, different levels of the local governments invest their own money to their incubators. Most of the national level incubators are partly owned by provincial governments, and the incubators sometimes invest money to their own incubating companies. 10) Available Tax Incentives to Enterprises Located in an Incubation Facility: Actually not yet, Ministry of Science and Technology is cooperating with National Taxation Bureau to study on how to support science and technology business incubators by issuing new policy to decrease taxation for incubators. But all the hi-tech companies granted by provincial science and technology administration government agencies can be favored by taxation discount. 2
(3) Business Incubation Facilities in Shanghai, China 1) The Total number of incubation facilities in Shanghai, China: (436 as of {2002}) 2) The Number of Incubation Facilities for Each Type of Originator Central government agency (0)facilities Local government agency (No accurate number available)facilities Government-related non-profit organization (No accurate number available)facilities Private for-profit company or group (No accurate number available)facilities Private non-profit organization (No accurate number available)facilities University or other school (No accurate number available)facilities Other (No accurate number available)facilities 3) The Average Size of Incubation Facilities in Shanghai, China; Total area of facility Ave. (17800)square meters Max. number of companies Ave. (54)companies Number of fulltime employees Ave. (No accurate number available)employees 4) The Number of Companies That Have Graduated from Incubation and the Number of Jobs That Have Been Created in the Past 10 (or 5)Years: (6972)companies graduated in (1995 2002)years. (414995)jobs created in 1995 2002)years. 5) The Survival Rate for Graduate Companies: surviving for 1 year (No accurate number available)% surviving for 3 year (No accurate number available)% surviving for 5 year (80)% 3
2 Profile of AABI Member Name Shanghai Hi-tech Business Incubator Network Name / title Wang Rong, Director of leader 100, Qing Zhou Road, Shanghai 200235, China Contact PHONE: +86-21-64839009 / +86-21-64839007 FAX: +86-21-64833567 E-MAIL: stic@stn.sh.cn http://www.tic.stn.sh.cn OR http://www.incubator.sh.cn Date Established September 1999 Funding founders Shanghai Municipal Science and Technology Commission Funding partners: None Nature of Government-related non-profit organization your organization Ministry in charge Shanghai Municipal Science and Technology Commission Relateioship with the government Founding mission Role within given economy Main activities and services to members Agency name: Shanghai Municipal Science and Technology Commission Relationship: Supervisory authority that has jurisdiction over the ShanghaiHigh-tech Business Incubator Network Agency name: Shanghai Technology Innovation Center Relationship: Leading organization in the Shanghai High-tech Business Incubator Network Enhancing cooperation between business incubators in Shanghai, so as to promote business application, industrial development and internationalization of high-tech industries Reinforcing liaison with provincial / municipal authorities, and promote exchange and cooperation with them; enhancing exchange and partnership with internationally prominent incubator organizations to promote international proliferation of BI; expanding employment and building a positive environment for business creation for the promotion of product application, industrial development and internationalization of high-tech industries. Providing guidance, coordination and administration to business incubators in Shanghai via information networks or the liaison conference system; researching policies on business incubators for thorough implementation of incentives; exploring a loan system for supporting high-tech oriented small 4
businesses, and jointly extending investment in venture businesses as appropriate Number of members Number of dues-paying members (0 )(No charge for members) Number of unpaid members (26) Number of staffs Full time stuff (2 ) Part-time stuff (5 )(as of {December 2003}) Name / title Name Wang Zhen of contact person Title Assistant Director, Shanghai Technology Innovation Center PHONE: +86-21-64839007 FAX: +86-21-64833567 E-mail: stic@stn.sh.cn / wangzhen@tic.stn.sh.cn 5
3 Profile of the similar BI groups in Shanghai, China (1) Sub-Committee of Science and Technology Business Incubators attached to the Association of Science and Technology Industry Development Parks a) Sub-Committee of Science and Technology Business Incubators attached to the Association of Science and Technology Industry Development Parks Name Sub-Committee of Science and Technology Business Incubators attached to the Association of Science and Technology Industry Development Parks Name and title Mr. Pei Xiasheng, Chairman of Sub-Committee of Science and Technology of leader Business Incubators. Mr. Pei is also the Vice Director of Torch High Technology Industry Development Center. 54 Sanlihe Rd. Beijing, P.R. China Contact TEL: +86-10-68511868 E-mail: mot@ctp.gov.cn http://www.ctp.gov.cn Date established November 1992 Funding founders Ex-Minister of Science and Technology, Mr. Song Jian Funding partners: Ex-Vice Minister Mr. Li Xu e Nature of org Government-related non-profit organization Ministry in charge The sub-committee is set up by Torch High Technology Industry Development Center, Ministry of Science and Technology Relateioship The sub-committee is set up by Torch High Technology Industry with the government Development Center. Founding mission To enforce the cooperation and communication of all the science and technology business incubators, hold professional training courses, and offer information service to the incubators in China. The sub-committee also indulged in international cooperation and communication. Role within given To enforce the cooperation and communication of all the science and economy technology business incubators, hold professional training courses, and offer information service to the incubators in China. The sub-committee also indulged in cooperation and communication with foreign incubators. The sub-committee is set up by Torch High Technology Industry Development Center. Main Project To enforce the cooperation and communication of all the science and or acitiviteis technology business incubators, hold professional training courses, and offer information service to the incubators in China. Number of members About 400 6
Number of staffs 5 Relationship with the The sub-committee is set up by Torch High Technology Industry given AABI member Development Center b) (No English name) Name Date established September 2002 Funding founders None Funding partners: None Nature of org Private for-profit organization or company Founding mission Promoting exchange / cooperation for mutual development Main Project or Gathering information, providing liaison between members, and organizing acitiviteis various seminars and networking activities Number of members 165 Number of staffs None Relationship with the The Shanghai High-tech Business Incubator Network is a member of given AABI member 7
4 Leading Incubation Facilities in Shanghai (1) Shanghai Technology Innovation Center Name of incubator Shanghai Technology Innovation Center Name / title of leader Representative name: Wang Rong / Director 100,Qinzhou Road,Shanghai 200235,China Contact TEL: 021-64839007 FAX: 021-64833567 E-mail: stic@stn.sh.cn www.tic.stn.sh.cn Dates established April, 1988 Missions of facility Fostering high-tech oriented SME and entrepreneurs, and promoting the industrial application of science and technology Operating formats Public body Affiliated S&T Commission of Shanghai Municipality organizations Form & Providing technological support, offering consultation in business characteristics of management / finances / taxation, and assisting in making applications to ssistance provided administrative authorities for business assistance Number of companies 96 companies located in Incubatees Companies in IT, biotechnology, innovative materials, chemical industry, information etc. Many of them have registered corporate capital of 500,000 to 1,000,000 yuan, with an average staff count of 10 to 50. Acceptance of foreign Yes. There is only one foreign company at present enterprises (2) Suzhou New & Hi-tech Innovation Service Center Name of incubator Suzhou New & Hi-tech Innovation Service Center Name / title of leader Representative name: Huang Zhen / Director Binhe Road 258 in Suzhou Newarea, China Contact TEL: 0512-68252537 FAX: 0512-68256218 E-mail: sibi@sibi.jsinfo.gov.cn 8
http://www.sibi.jsinfo.gov.cn/ http://www.sibi.jsinfo.gov.cn/english/index.asp Dates established Year of 1993 Missions of facility N/A Operating formats Public body Affiliated None organizations Form Channeling funds and collateral from venture funds / venture capital in the & characteristics of New Suzhou Industrial Park to individual businesses; setting up a assistance provided marketing service section to provide market consulting services; building an information / communications platform to deliver services to companies. Number of companies Around 600 companies located in (3) Science and Technology Business Incubator in Xi an Science and Technology Industry Development Park Name of incubator Science and Technology Business Incubator in Xi an Science and Technology Industry Development Park Name / title of leader Representative name: Ms. Zhao Jing, Director es:25 Gaoxin 1 Rd,Xi an Hi-tech Zone,Xi an,shanxi,p.r.china Contact TEL: 029-88314820 FAX: 029-88320126 E-mail: zj@xibi.com http://www.xibi.com.cn/index.jsp Dates established May 28, 1993 Operating formats Under direct jurisdiction of Number of companies 380 located in Incubatees High-tech SME and companies established by those with overseas study information experience 9
(4) International Business Incubator of Wuhan China Name of incubator International Business Incubator of Wuhan China Name / title of leader Representative name: Gong Wei, Director 5th Floor,Building 7-4#,Guandong Science Park,Wuhan,Hubei,P.R.China Contact TEL: 027-87412659 FAX: 027-87406310 E-mail: public@whibi.com http://www.ibi.org.cn/ Dates established June 1987 Operating formats Public body (5) No English name available ( ) Name of incubator Name / title of leader Representative name: Lu Chenzhong / Director Contact TEL: 0571-88218865 FAX: 0571- E-mail: luchenzhong@hhtz.gov.cn http://www.hhtz.gov.cn/bszn/index01_news01.asp?guide_mng_depart_num =118 Dates established Year of 1990 Operating formats Public body 10
5 Evaluation System & Award for Business Incubation Activities (1) System to Evaluate incubation facilities With or witout system No yet, but plan to introduce in the future Name of system Not established Implementing org. N/A Introduced date N/A Purpose of system To Evaluate the performance of the incubators in China and enhance the operation quality of the incubators, Torch High Technology Industry Development Center is engineering an evaluation system. Subject of evaluation N/A Used s and N/A criteria Method, procedure N/A Award given thus far N/A (2) Other awards for Model Incubation Manager or Excellence in Incubation Excellence Science and Technology Business Incubators Award (Same as the one in Beijin, China) (Detail information is omitted. Refer to the 1-5 (2) ) 11