Regulations of Shenzhen Special Economic Zone on National Independent Innovation Demonstration Zone

From: Justice Bureau of Shenzhen Municipality | Updated:2021-07-02

(Adopted at the 22nd meeting of the Standing Committee of the 6th Shenzhen Municipal People's Congress on January 12, 2018, revised in accordance with the Decision on Amending 45 Regulations Including the Regulations of Shenzhen Special Economic Zone on Human Organ Donation and Transplantation at the 36th meeting of the Standing Committee of the 6th Shenzhen Municipal People's Congress on October 31, 2019)

Chapter One General Provisions

Article 1 In order to fully implement the innovation-driven development strategy, ensure and promote the construction and development of Shenzhen National Independent Innovation Demonstration Zone (hereinafter referred to as the Demonstration Zone), speed up the construction of a modern, internationalized and innovative city, and take the lead in building a socialist modernized pilot zone, these Regulations are hereby formulated in accordance with the basic principles of relevant laws and administrative regulations, and inlight of the actual circumstances of Shenzhen Special Economic Zone.

Article 2 These Regulations are applicable to the scientific and technological innovation, industrial innovation, financial innovation, management and service innovation, spatial resource allocation, social environment construction and other aspects of the Demonstration Zone.

The term Demonstration Zone mentioned herein means the area established with the approval of the State Council for the purposes of pioneering to explore experience and make demonstration in promoting independent innovation and the development of high-tech industries, including Shenzhen High-tech Industrial Park (hereinafter referred to as the High-tech Park) and other industrial parks.

The specific territorial scope of each industrial park in the Demonstration Zone shall be announced separately by Shenzhen Municipal People's Government.

Article 3 With scientific and technological innovation as the core, the building of the Demonstration Zone as an innovation-driven development demonstration zone, a pilot zone in the scientific and technological system reform, a cluster zone for strategic emerging industries, a leading zone for open innovation and an ecological zone for innovation and entrepreneurship shall be accelerated, with a view to allow the Demonstration Zone to play its leading and stimulating role in independent innovation.

Article 4 Improve the innovation system with enterprises as thesubjects, market as the guidance and combination of industry, higher education institution and research institute, promote innovation elements to be gathered for enterprises, and constantly enhance the innovation capability of enterprises.

Article 5 Foster a social environment encouraging innovation, create an atmosphere of openness and inclusiveness, cooperation and collaboration, and which advocates innovation, and stimulate the innovation vigor of the whole society.

Article 6 The people's governments at the municipal and district levels shall strengthen their organization and leadership over the work of the Demonstration Zone, formulate the development plan for the Demonstration Zone, establish the corresponding mechanism for guaranteeing capital input and other resources, and coordinate major matters in the work of the Demonstration Zone.

Article 7 Entities or individuals that have made outstanding contributions to the work of the Demonstration Zone shall be granted honors and rewards by the people's government at the municipal or district level or the relevant government departments.

Chapter Two Scientific and Technological Innovation

Article 8 With scientific and technological innovation as the core, scientific exploration and technological breakthrough shall be strengthened especially by attaching importance to the innovation of key generic technologies, cutting-edge leading technologies, modern engineering technologies and disruptive technological innovations, so as to form a systematic capability for sustainable innovation.

Article 9 The stable supporting mechanism for fiscal input in basic research shall be improved. The support of fiscal funds for public scientific and technological activities such as researches on basic cutting-edge technologies, social benefit-oriented technologies, and major key generic technologies shall be strengthened, and the proportion of the basic research input among the fiscal input in science and technology shall be constantly increased.

Article 10 The research and development of core and key technologies made by institutions of higher learning, scientific research institutes, enterprises and social organizations shall be supported, aiming to promote the leapfrog development of productive forces with major breakthroughs in the development of science and technology. Any of the above entities who meets the requirements shall be subsidized with the corresponding fiscal funds.

Article 11 Fiscal funds shall be gradually reduced the direct input mode, the modes such as post fiscal subsidies and indirect input shall be comprehensively used, for the purposes of supporting enterprises to carry out technological innovation according to market demands, and guiding enterprises to increase investment in research and development.

Fiscal funds shall be used as the counterpart funds for scientific and technological research and development of subsidized enterprises, and the supporting proportion shall be stipulated by Shenzhen Municipal People's Government.

Article 12 Institutions of higher learning, scientific research institutes and enterprises shall be supported in establishing overseas research and development institutions and technology exchange platforms in the countries and regions with advanced science and technology and intensive innovation resources and participating in international scientific and technological cooperation programs.

Well-known research and development institutions and teams of scientists at home and abroad shall be supported in setting up research and development institutions in the Demonstration Zone dedicated to the research and development of core and key technologies and the research and the research of industrial application.

Article 13 Where institution of higher learning, scientific research institute or enterprise cooperates with any research and development institution outside Shenzhen in scientific research, whose achievements are industrialized in the Demonstration Zone, such cooperation may be deemed as a scientific research project in the Demonstration Zone, which shall enjoy the relevant preferential treatment in accordance with the relevant provisions.

Article 14 For the research and development project for strategic emerging industries or future industries which meets the requirements, the corresponding support may be granted by fiscal funds; fiscal funds may also be granted separately for the cultivation and introduction of leading scientific talents and the purchase and construction of large-scale scientific instruments and facilities.

Article 15 Where outstanding talents, national leading talents, or introduced overseas talents at or above the level of national leading talents build a scientific research team to carry out the research and development of any scientific and technological project, and such project meets the requirements for granting fiscal funds, the leader of the scientific research team may apply for the relevant subsidies. The granted subsidy funds shall be managed by the entity employing that leader or its cooperative entity in accordance with the relevant provisions.

Article 16 The people's government at the municipal or district level may entrust an institution with corresponding qualifications and capabilities to exercise the rights of a fiscal sponsor on behalf of the government, and use fiscal funds to support enterprises to carry out the innovation in technology, management and business models by holding equity at certain stages.

Where the fiscal funds invested are at a loss when the entrusted equity holding institution withdraws its equities, and upon assessment by a third-party evaluation agency, such institution is recognized as having made a legitimate investment and having fulfilled its duties with due diligence, such loss may be written off in accordance with the provisions.

Article 17 Where institution of higher learning, scientific research institute or enterprise purchases and constructs large-scale scientific instruments and facilities with fiscal funds or state-owned capital, the ownership and related income shall be vested in the entity purchasing and constructing such instruments and facilities. If it is otherwise stipulated in any agreement, such stipulations shall prevail.

Article 18 Institution of higher learning, scientific research institute or scientific researcher who establishes a company, or buys shares in a company based on intellectual property contributions may hold shares as an independent shareholder, and may complete the registration of the company or shares at the agreed shareholding ratio.

Article 19 Institution of higher learning, scientific research institute, enterprise or any other entity with large-scale scientific instruments and facilities shall, in accordance with the relevant provisions and upon meeting its own needs of use, make fully available to the public to use the large-scale scientific instruments and facilities purchased or constructed with or mostly with fiscal funds or state-owned capital for the purposes of supporting relevant organizations or individuals to carry out scientific research and technological development.

The application report for the purchase and construction of large-scale scientific instruments and facilities or the project feasibility study report shall include the open service commitment and specify the timing, scope, method and other aspects of the open services. However, projects involving national security and major public interests are excluded.

If large-scale scientific instruments and facilities are open for the public to use, appropriate fees may be charged in accordance with the principle of non-profit.

Information platforms for large-scale scientific instruments and facilities open for the public to use shall be established, the relevant information on the open services shall be disclosed promptly.

Article 20 The cross-border use of funds and instruments and facilities for research and development projects jointly subsidized by Shenzhen and Hong Kong shall be promoted in order to facilitate the rational interflow of scientific researchers, instruments and facilities, fiscal funds for science and technology between Shenzhen and Hong Kong.

Chapter Three Industrial Innovation

Article 21 The strategies of original brands, intellectual property and standardization shall be implemented, the market-orientation and the enterprises' leadership in innovation shall be consolidated, the transfer and transformation of scientific and technological achievements and the promotion of advanced technologies shall be accelerated, and an industrial innovation system shall be built.

Article 22 The industrial orientation advocating green, low-carbon and circular economic development shall be consistently followed by prohibiting industries with high energy consumption, high pollution and high emissions from entering the Demonstration Zone, and actively promoting the development of industries characterized by energy conservation and environmental protection, clean production and clean energy.

Article 23 The people's governments at the municipal and district levels shall promote the innovation and cultivation of regional brands, accelerate the building of well-known brands, and enhance the quality competitiveness and international influence of local well-known brands.

Branding public service agency shall be supported in providing enterprises with services such as brand planning, cultivation, publicity and talent training, carrying out brand certification, and participating in brand value evaluation. For the agency who meets the requirements, the corresponding fiscal support shall be granted by the fiscal funds.

Article 24 Institution of higher learning, scientific research institute or enterprise shall be supported in establishing a synchronization mechanism for research, development and standard innovation, so as to promote the integrated development of scientific research, standards and industries.

Standardization service agency shall be supported in participating in standard establishment, Shenzhen standards certification, theory researches on standards, training of talents on standards, and researches on international technical trade measures. Any of the above entities who meets the requirements shall be subsidized accordingly with fiscal funds.

Article 25 Incubation program for national high-tech enterprises shall be implemented, and database for the incubation of national high-tech enterprises shall be established. The relevant departments may provide corresponding support to the enterprises in the database for their research and development activities.

Article 26 Where industrial enterprise incorporated in Shenzhen and meeting the requirements of industrial policies and the catalog for industry orientation carries out technological transformation, it may apply for fiscal funds in accordance with the relevant provisions.

Article 27 The construction of professional and comprehensive pilot test bases shall be supported to provide services such as pre-production tests or trial run productions for the industrialization, commercialization and large-scale production of enterprise products. The entity who meets the requirements shall be subsidized accordingly with fiscal funds.

Article 28 Business incubators shall be encouraged to provide supporting value-added services for tech start-ups, full-chain industrial incubation system shall be built, the capability of operation services shall be enhanced, and the survival rate of start-ups, the ownership rate of intellectual property and the conversion rate of scientific and technological achievements shall be increased. The entity who meets the requirements shall be subsidized accordingly with fiscal funds.

The development of individual Maker, Maker team, Maker space or Maker service platform shall be supported, aiming to promote the transformation of creative ideas into products or services. The individual and entity who meets the requirements shall be subsidized accordingly with fiscal funds.

Article 29 The people's governments at the municipal and district levels shall actively cultivate scientific service agencies and technological innovation service platforms to provide relevant services to institutions of higher learning, scientific research institutes and enterprises.

The people's governments at the municipal and district levels shall strengthen the standardized administration of scientific service agencies and technological innovation service platforms.

Article 30 Investment and financing platform for military-civilian integration projects shall be set up to promote the integration of military-civilian innovation, and a mechanism for sharing military-civilian information and facilities shall be built; enterprises shall be supported in undertaking projects included in any national major program for military-civilian integration or carrying out research and development cooperation with military industrial entities, with a view to promote the research and development of civil-military dual-purpose technologies and the transformation of scientific and technological achievements.

Article 31 The mutual recognition of practicing qualifications between Shenzhen and Hong Kong shall be promoted, and professionals who have obtained practicing qualifications in Hong Kong shall be supported to directly provide professional services in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, and gradually in other industrial parks.

Association for engineers, brokers or other relevant industries shall be supported in establishing an international practicing qualification evaluation system in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, and the relevant departments may accredit its evaluation results in accordance with the relevant provisions.

Chapter Four Financial Innovation

Article 32 Financial service model and system suitable for the innovative development of the Demonstration Zone shall be established to expand the function of the financial market in supporting innovation, and provide comprehensive financial services for science and technology enterprises.

Article 33 Commercial banks shall be supported in establishing credit extension, risk rating, review and approval and post-loan management systems suitable for science and technology enterprises, so as to improve the credit management of science and technology enterprises.

Qualified banking financial institution shall, subject to legal compliance and risks controllability, be encouraged to provide services for the financing of science and technology enterprises by carrying out the innovation of debt-equity combination financing in the form of loans, shares or options.

Article 34 Shenzhen Stock Exchange shall be supported in developing a multi-level capital market, optimizing financing services, diversifying exchange traded products and attracting enterprises at home and abroad to seek financing by listing on the exchange.

Small and medium-sized enterprises shall be encouraged to carry out financing activities through securities trading institutions at home and abroad.

Article 35 Innovative enterprises meeting the requirements shall be supported in issuing various bonds such as enterprise bonds, corporate bonds, small and micro enterprise credit enhancement collective bonds and project revenue bonds to broaden their financing channels.

Article 36 Insurance institutions shall be supported in developing science and technology insurance, export credit insurance, patent insurance, micro-loan guarantee insurance and other insurance products, in order to provide insurance coverage and financing support for science and technology enterprises.

Article 37 Parent fund invested by the government shall be established or any sub-fund shall be established or participated in conjunction with social capital, focusing on supporting the development of innovative enterprises in high-tech industries and emerging industries in the early-to-mid stage and the initial stage.

Article 38 The risk compensation mechanism for pledge investment and financing of intellectual property shall be improved. Shenzhen Municipal People's Government may initiate the establishment of a risk compensation fund for pledge investment and financing of intellectual property to offer a certain proportion of compensation to any qualified project failing in pledge investment or financing of intellectual property.

Article 39 Account management system matching the openness of RMB capital accounts in Shenzhen Qianhai Shekou Area of China (Guangdong) Pilot Free Trade Zone shall be promoted and established for the purposes of building a hub for cross-border RMB business innovation, and pioneering and piloting in key areas such as the internationalization of RMB and the openness of capital accounts.

Chapter Five Management and Service Innovation

Article 40 Government management and service innovation shall be innovated to achieve high quality and high efficiency of public services, and an administrative environment conducive to the innovative development of the Demonstration Zone shall be created.

Article 41Either the people's governments at the municipal levels or the people’s court at the district levels shall establish a joint commission on the management of the Demonstration Zone, performing the following duties:

(1) reviewing the development plan of the Demonstration Zone;

(2) coordinating the formulation of important policies, the arrangement of major projects and the pilot reform work on the Demonstration Zone;

(3) assessing and evaluating the work of the Demonstration Zone;

(4) reviewing and deciding other important matters relating to the work of the Demonstration Zone.

The jointcommission shall be convened by the chief leader of the people's government at the municipal or district level and attended by the relevant government departments of development and reform, education, scientific and technological innovation, industry and informatization, judicial administration, fiscal affairs, human resources and social security, planning and natural resources, state-owned asset supervision, market supervision, local financial regulation, taxation and other relevant departments. District people's government may attend the joint commission held by Shenzhen Municipal People's Government.

The jointcommission office is set in the municipal and district department of scientific and technological innovation, and is responsible for the day-to-day work.

Article 42 The municipal department of scientific and technological innovation shall be responsible for the following work in the construction and development of the Demonstration Zone:

(1) formulating the development strategies, plans and relevant policies and measures of the Demonstration Zone, and organizing their implementation upon approval;

(2) coordinating the arrangement of major projects and the relevant researches on basic cutting-edge technologies, social benefit-oriented technologies, and major key generic technologies, and guiding the industrialization of high and new technologies and the development and promotion of application technologies, with a view to promote the transformation of scientific and technological achievements;

(3) declaring, managing and supervising the relevant capital and funds within the scope of its responsibilities;

(4) carrying out the work related to the identification of high-tech enterprises;

(5) other responsibilities as prescribed by Shenzhen Municipal People's Government.

Other municipal departments shall, within the scope of their respective responsibilities, implement the development strategies, plans and policies of the Demonstration Zone, provide relevant public services, and jointly promote the construction and development of the Demonstration Zone.

Article 43 District people's government shall be responsible for the formulation and implementation of the industrial plans of the Demonstration Zone within its jurisdiction, and the introduction, supervision, management and service of major projects.

Article 44 The system governing inter-departmental overall decision-making, joint supervision and performance evaluation of fiscal funds for science and technology of people's government at the municipal or district level shall be established, to unify the platform for project management and information disclosure, and reasonably arrange the fields, proportion and scale of the invested fiscal funds for science and technology, and improve the efficiency of the use of fiscal funds.

Article 45 The people's governments at the municipal and district levels and the relevant departments involved in the registration and licensing information in the technological innovation, industrial innovation and talent training and introduction of enterprises, public institutions, other organizations or individuals in the Demonstration Zone shall contact and keep each other informed of such information by establishing an information sharing mechanism.

Where materials have been submitted to or generated by any government department, enterprise, public institution, other organization or individual is not required to submit the same materials repeatedly in its/his registration, licensing, qualification accreditation or fiscal support application in the same government department or another government department at the same level. The relevant department shall not reject the application for such cause; if the relevant materials are necessary, the department accepting the application shall obtain them on its own.

Article 46 The evaluation system for science and technology shall be improved by exerting the function of diversified evaluators and diversified evaluation criteria in science and technology evaluation, so as to improve the scientificity and rationality of science and technology evaluation.

The weight of technical feasibility shall be increased in the demonstration and evaluation of applied research projects, industrialization key projects and other related projects.

Article 47 Cross-departmental and trans-regional database of experts for the evaluation and acceptance of scientific research projects shall be established, which shall include the domestic and international leading talents in relevant fields as expert candidates for the evaluation and acceptance of scientific research projects.

The staff of the competent administrative departments and the entrusted institutions responsible for the evaluation and acceptance of scientific research projects shall not participate in or interfere with the evaluation and acceptance of scientific research projects.

Article 48 System for reviewing the intellectual property compliance of projects subsidized by fiscal funds shall be established to strengthen the creation, protection and application of intellectual property.

Applicants and project leaders applying for fiscal funds shall submit a statement of the intellectual property compliance of the project to the competent administrative departments.

The competent administrative departments shall, in conjunction with the intellectual property departments, conduct an intellectual property compliance review of project to be subsidized in an amount up to that specified by any people's government at the municipal or district level. If it is found that there is infringement upon intellectual property or high risk of infringement upon intellectual property, such project shall not be subsidized.

Article 49 The results of approval, evaluation or peer-review of the research and development of projects, the training and introduction of talents and the purchase and construction of large-scale scientific instruments and facilities applying for fiscal funds shall be made public unless involved in state secrets. Where the application fails to pass the approval, evaluation or peer-review, the reasons for the failure shall be explained to the applicant within five working days.

Article 50 The people's governments at the municipal and district levels and the relevant departments shall strengthen the supervision over the use of fiscal funds and prepare regular reports on the use of funds to ensure that the funds are used for the matters subsidized reasonably and in full.

The relevant departments may, when necessary, entrust professional institutions to manage the matters subsidized by fiscal funds, which, however, shall not relieve the entrusting departments of their responsibilities of supervising the use of funds.

Article 51 Where the amount of fiscal funds used to subsidize scientific research projects, the training and introduction of leading scientific research talents, or the purchase and construction of large-scale scientific instruments and facilities is up to the amount prescribed by Shenzhen Municipal People's Government, the competent administrative department approving the subsidy shall entrust a professional institution to audit the use of the funds.

The municipal and district audit departments shall, in accordance with their responsibilities and the work arrangements of the people's governments at the municipal and district levels, legally carry out the audit supervision over the implementation of the relevant provisions herein by relevant departments, and the audit reports shall be made public according to the law.

Article 52 Where the planning environmental impact assessment of an industrial park is legally completed, and a construction project is in conformity with the opinions of such planning environmental impact assessment and review, the content of such environmental impact assessment may be appropriately simplified or the category of such environmental impact assessment may be appropriately adjusted, unless:

(1) the environmental impact assessment documents shall be reviewed and approved by the ecological and environmental departments at or above the provincial level;

(2) the construction project falls within heavy pollution industries such as electroplating, chemical industry, papermaking, printing and dyeing, tanning, fermentation and brewing, large-scale breeding and comprehensive utilization or disposal of hazardous wastes.

Article 53 The municipal and district departments of government service data management shall establish public service platforms for independent innovation information, providing information inquiry services such as policies and regulations, market supervision, scientific and technological achievements, technical documents on standards and public services.

Article 54 The municipal and district departments of scientific and technological innovation shall, in conjunction with human resources department, provide public-based training for scientific researchers in expanding and updating public knowledge to improve their scientific and technological level and innovation capability.

Institutions of higher learning, scientific research institutions, science and technology associations, relevant trade associations or high-tech enterprises may be entrusted to undertake the training for knowledge expansion and update.

Article 55 The municipal and district departments of scientific and technological innovation shall, in conjunction with the judicial administrative departments, provide legal consulting, legal representation, legal aid, notarization, judicial expertise, legal professional training and other public legal services for the innovation activities of institutions of higher learning, scientific research institutions, enterprises and scientific researchers.

Article 56 Intellectual property public service platform shall be established to provide intellectual property inquiry, agency, evaluation, operation, rights protection assistance and other services to institutions of higher learning, scientific research institutions, enterprises and scientific researchers.

Article 57 The municipal local financial regulatory departments shall, in conjunction with relevant units, build a one-stop investment and financing service platform for small and medium-sized enterprises to provide services such as debt financing and equity financing.

Article 58 The municipal and district statistics departments shall make innovations in the manners and methods of statistical investigation and analysis, strengthen the comparison and analysis of inter-departmental data, and timely release macroeconomic data as well as data on the development of new industries, new economy and new forms of business, so as to provide statistical information services for the innovative development of enterprises.

Article 59 Assessment mechanism oriented towards innovative development shall be established and improved, and the implementation of the innovation-driven development strategy shall be considered as an important assessment index, which shall be incorporated into the scope of performance assessment of the people's governments at the district level, the municipal and district departments and the relevant institutions.

Article 60 Where administrative license in respect of the purchase, relocation, leasing of factory premises and ancillary accommodations of enterprises in the High-tech Park is cancelled, the relevant matters shall be dealt with in accordance with the relevant agreements.

Chapter Six Space Resource Allocation

Article 61 The principle of combining market-based resource allocation with governmental industrial orientation shall be adhered to, a security system for the use of land and premises for innovative industries shall be established.

Article 62 The planning and natural resources departments shall optimize the urban planning of the Demonstration Zone by incorporating the demand for land for innovative industries such as high-tech industries, strategic emerging industries and future industries into the annual implementation plan for urban construction and land use, and giving priority to allocating the land for innovative industries.

Article 63 The planning and natural resources departments shall focus on the construction of innovative industries and their ancillary facilities, and strengthen overall planning and coordination to accelerate the land rearrangement of old industrial areas, low-density functional areas and sporadic plots in the Demonstration Zone.

Article 64 Based on the combination of the land space use and the construction of ecological civilization, the restricted and prohibited areas of various industries shall be delimited according to the functional orientation of different areas, and the green land and the other land for ecological construction shall be reasonably reserved, so as to achieve the coordinated development of technological innovation and ecological protection.

Article 65 Application for the land for innovative industries in the Demonstration Zone or for the change in the purpose of the land whose right to use has been obtained, shall meet the requirements of industrial planning and urban planning of the Demonstration Zone.

Article 66 Entity who applies for the right to use the land for innovative industries in the High-tech Park shall be a high-tech enterprise.

Where the industrial premises built by a high-tech enterprise that has obtained the right to use the land for innovative industries in the High-tech Park are leased according the law, the lessee shall be a high-tech enterprise or the relevant enterprise or institution serving high-tech enterprises.

The specific measures for the construction land for affordable housing and public facilities in the High-tech Park shall be formulated by Shenzhen Municipal People's Government.

Article 67 Where the right to use the land in the Demonstration Zone is obtained via bid invitation, auction or quotation, and such land use right is transferred by the transferee or enforced by any people's court, but there is no sub-transferee or bidder who meets the conditions for the transfer, then it shall be repurchased by the people's government at the municipal or district level under the terms and at the price stipulated in the agreement for the assignment of the right to use the land.

Article 68 The people's governments at the municipal and district levels may build the premises for innovative industries in accordance with the urban planning of the Demonstration Zone and the requirements for the development of innovative industries.

The land needed for the construction of the premises for innovative industries which are owned by the government may be obtained by administrative allocation or agreement-based assignment.

Article 69 The land or premises for innovative industries owned by the government shall mainly guarantee the actual needs of qualified enterprises for land and premises by means of leasing.

Enterprise whose term of lease expires and the development direction of the project fits the catalog for industry orientation may renew the lease or have the priority to lease land or purchase premises for innovative industries under the same conditions.

Article 70 Where the right to use the land in the Demonstration Zone is obtained via bid invitation, auction or quotation, or the land function is updated and rebuilt for innovative industries from any urban renewal project, the premises for innovative industries shall be constructed on such land as ancillary facilities in accordance with the relevant provisions.

Article 71 The implementation of urban renewal in old industrial areas shall be supported to promote industrial upgrading and improve the supporting level of associated industries; the successor of former rural collective economic organization shall be supported in engaging in the construction of innovative industrial projects in the Demonstration Zone in accordance with the relevant provisions to improve the efficiency of land use.

Article 72 Where industrial premises constructed upon obtaining the right to use the land for innovative industries by agreement-based lease or agreement-based assignment are leased according to the law, the rent of such premises shall not be higher than the lease price standard of premises for innovative industries owned by the government; the excess of the rent shall be confiscated by people's government at the district level.

Chapter Seven Social Environment Construction

Article 73 The positive functions of various government departments, mass organizations such as trade unions, communist youth leagues, women's federations and relevant social organizations in the construction and development of the Demonstration Zone shall be exerted, in order to create legal, market and cultural environments conducive to innovative development.

Article 74 A legal environment in which innovation is protected shall be perfected. The formulation of regulations, rules and normative documents in weak links and fields in respect of innovation shall be accelerated, and the content in regulations, rules and normative documents that does not meet the needs of the development of the Demonstration Zone shall be promptly cleaned up.

Where enterprise, public institution, other organization or individual considers that the content in regulations, rules or normative documents does not meet the needs of the construction and development of the Demonstration Zone, it/he may make recommendations for amendment or annulment to the relevant departments, who shall deal with the matter upon consideration and reply in accordance with the relevant provisions.

Article 75 The judicial protection for the construction and development of the Demonstration Zone shall be strengthened. The people's courts and the people's procuratorates shall actively safeguard the legitimate rights and interests of institutions of higher learning, scientific research institutes, enterprises and scientific researchers by making comprehensive use of settling judicial cases and providing judicial opinions.

Article 76 An open and fair market environment shall be cultivated. The guiding function of demand-side innovation policies shall be strengthened to reduce the cost of enterprise innovation, and expand the market space for innovative products and services.

Article 77 The people's governments at the municipal and district levels and their relevant departments may organize or encourage institutions of higher learning, scientific research institutes, trade associations and other organizations to organize activities such as training, competitions, forums, exhibitions and creative idea solicitation in respect of innovation and entrepreneurship, aiming to create a social atmosphere supporting innovation.

Article 78 Industrial associations and intellectual property intermediary agencies shall be supported to engage in intellectual property protection by providing services such as intellectual property infringement monitoring, evidence collection, assessment and pricing, pre-arranged planning and early warning, dispute mediation, and right protection and assistance.

Article 79 Vocational colleges and technicians institutes shall be encouraged to cooperate with relevant trade associations and enterprises to jointly train technical and skilled talents by developing courses and teaching materials, providing practical training bases and formulating industrial training standards.

Article 80 Enterprises, trade associations, other organizations and individuals shall be encouraged to set up incentive funds for science and technology for the purposes of rewarding innovative projects on key generic technologies, cutting-edge leading technologies, modern engineering technologies and disruptive technologies, as well as entities and individuals that have made outstanding contributions in scientific research, technological development, promotion and application of scientific and technological achievements, industrialization of high and new technologies, and popularization of science and technology.

Article 81 A cultural environment that advocates innovation shall be created. A cultural atmosphere of encouraging creativity, pursuing excellence and tolerating failure shall be formed in the whole society, and innovative development shall be promoted as an important connotation of Shenzhen's urban spirits.

The spirit of entrepreneurship shall be carried forward, and the creative vitality of scientific researchers shall be fully stimulated, so as to give full play to the demonstrating and leading role of entrepreneurs and scientific researchers.

Article 82 The construction of infrastructures for science popularization shall be strengthened, and the concept and mode of science popularization shall be innovated, a series of science communication products focusing on major innovative achievements and scientific research progress shall be developed and popularized, scientific knowledge, scientific methods, scientific spirits and scientific culture shall be disseminated to the public.

Enterprises, public institutions and trade associations shall be encouraged to set up venues for science popularization available to the public. Where conditions permit, research and development institutions, production facilities (processes) or exhibition venues shall be opened to the public according to their own characteristics, as bases for science popularization and education.

Article 83 Science and technology associations may support the construction and development of the Demonstration Zone in the following ways:

(1) carrying out academic exchanges at home and abroad;

(2) participating in talent evaluation and recommendation;

(3) carrying out science popularization activities;

(4) providing consulting on decision-making;

(5) safeguarding the legitimate rights and interests of scientific researchers;

(6) carrying out any other activities to promote technological innovation.

Science and technology associations and other social organizations for science and technology may undertake the relevant transferred government functions, and carry out scientific and technological evaluation, reward, recommendation and other activities, fully exert their function in the independent innovation system.

Article 84 Trade unions, communist youth leagues, women's federations and other mass organizations shall exploit their advantages to cultivate the spirit of innovation and support relevant organizations and individuals to participate in innovation-related activities.

Article 85 The news media shall make more efforts in the publicity, reporting and public opinion guidance on the implementation of the innovation-driven development strategy, publicize relevant policies and regulations, innovation models, innovation achievements and innovation brands, create a good atmosphere to support innovation.

Chapter Eight Legal Liabilities

Article 86 Any entity who uses or mainly uses fiscal funds or state-owned capital to construct or purchase large-scale scientific instruments and facilities but fails to perform its obligation of keeping them open for use to the public or charges fees from the public in violation of regulations shall be ordered by the relevant competent department to make rectifications within a time limit; the fees charged in violation of regulations shall be confiscated by such relevant competent department; and the person(s)-in-charge and other persons directly responsible for such violations shall be administratively sanctioned according to law.

Article 87 Anyone who fails to submit any relevant report or application for concluding the project (or acceptance) as required by the subsidy contract or assignment statement for fiscal funds shall be ordered to rectify in accordance with the stipulations or provisions unless they cannot be completed due to force majeure; where it/he fails to make rectifications or fails to meet the requirements of the contract or assignment statement upon rectification, the relevant competent department shall cease subsidizing it/he and order it/he to refund the granted funds, and include the applicant and the project leader in the list of bad faith, whose application for fiscal funds shall not be accepted within the following three years.

Where the subsidy project cannot be completed due to force majeure, the applicant shall refund the unused fiscal funds.

Article 88 For the project subsidized by fiscal funds under any of the following circumstances, the relevant competent department shall cease subsidizing and order the granted funds to be refunded, and include the applicant and the project leader in the list of bad faith, whose application for fiscal funds shall not be accepted within the following five years, and shall hold it/him criminally accountable in the case of a criminal offense:

(1) fraudulently obtaining fiscal funds;

(2) illegally misappropriating, embezzling, falsely claiming or withholding fiscal funds;

(3) any infringement upon intellectual property committed with fault, which has beenconfirmed by the competent government department or judicial authority in accordance with the law;

(4) any other circumstances prescribed by laws and regulations.

Article 89 Any person who makes a false evaluation, assessment, appraisal or improperly discloses any enterprise's trade secrets in the evaluation, acceptance, assessment or appraisal of a scientific research project shall, in addition to being punished by law, be included in the list of bad faith, who shall not engage in the evaluation and acceptance of scientific research projects or the assessment, appraisal and demonstration of scientific and technological achievements within the following five years.

Article 90 Where a staff of an institution entrusted to organize the evaluation and acceptance of a scientific research project participates in or interferes with the evaluation and acceptance of such project, the entrusting department shall revoke the entrustment and shall not entrust such institution to organize the evaluation and acceptance of any scientific research project within the following five years, and shall hold it criminally accountable in the case of a criminal offense.

Article 91 Where the competent administrative department or its staff fails to perform its/his duties in accordance with the provisions of laws, regulations and these Regulations, or abuses its/his powers, engages in malpractices for personal gains or neglects its/his duties, it/he shall be administratively sanctioned by such department or the supervisory organ, and shall be held criminally accountable in the case of a criminal offense.

Chapter Nine Supplementary Provisions

Article 92 These Regulations may applymutatis mutandis to the work related to the implementation of the innovation-driven development strategy outside the Demonstration Zone.

Article 93 These Regulations shallbecome effective as of March 1, 2018.