1. Xinmin Evening News: I have a question to ask director Li. The city’s attached policies pledged to guarantee an increased innovation efficiency. How will the city make further use of platforms and parks? Any specific measures?

Li Yiping: I’ll give a brief answer. To further propel the strategy to vitalize the city through science and education, we will focus on the national strategy, focusing on innovation platforms and parks, and on big projects. At the end of 2003, the city Party committee released the outline of the strategy, proposing to build five public platforms. In these years, the city’s authorities, together with the whole society, are building Shanghai’s public service platforms, including the R&D public service platform and the intellectual property right platform. So far, the R&D platform has been running for nearly two years, and has drawn some attention from society. More than 60,000 customers have registered on the platform, and its visitor traffic has reached 2.59 million. The platform has also provided 286,000 agent services, specifically in the small and medium-sized companies. The IPR platform has been very helpful to raise the quantity of intellectual properties and to enhance its quality. Shanghai’s R&D platform, consisting of 10 systems, opens to small and medium-sized enterprises, colleges and scientific research institutes. The platform will continue to expand and improve. Therefore, we will introduce an idea that building together and sharing the benefits together is the best for society. Then, the government should optimize the resource configuration to lead more government funds to the public services. The third is to ensure a solid law environment. We will step up construction of platforms in these three ways to help small and medium-sized companies reduce innovation costs, and help scientific research institutes transform their innovative achievements into products.

2. Jiefang Daily: I have a question for director Jiang. In 2004, the city launched the first batch of large science and technology development projects to impel and to revitalize the city through science and education. I want to learn more about the progress of this move. Is there any detailed data?

Jiang Yingshi: The Shanghai government set up a special fund to support large science and technology development projects of this strategy. Authorities launched two batches of 48 projects in more than two years. The first batch of 29 projects was launched in July 2004, and the second batch of 19 projects was launched at the end of 2005. These two batches boosted the development of a group of industries and several industry chains. Large equipment manufacturing, information technology, biotech and pharmaceutical and new energy and material were the four main industries. These projects were also an impetus to innovation. The 29 projects in the first batch have acquired 406 intellectual properties, including 281 patents. The projects also increased cooperation between production and research. More than 30 colleges and 36 scientific research institutes have cooperated with enterprises in these 48 projects. Besides, the projects attracted a number of outstanding talents, including many coming back from overseas. Currently, 3,430 scientific talents are engaging in the 48 projects, and 54 of them have become project leaders. Also, the projects have mobilized more social funds. The special fund we set aside for the 48 projects was 2.5 billion yuan. They have also drawn another 12.5 billion yuan investment, including foreign and domestic venture investments, financial capitals, corporate funds and some government authorities’ supportive funds. The city government has reiterated in the latest policy document that the special fund allocated for the key science and technology development projects will be used to propel the implementation of the nation’s and the city’s key projects. Thanks.

3. Science and Technology Daily: I want to ask director Li Yiping of the science commission, while drafting the city’s attached policies, how Shanghai tried to be in line with the national policies. And how did Shanghai embody its local characteristics? Thank you.

Li Yiping: I think the 60 policies issued by the State Council have two characteristics. One is to highlight the innovation of enterprises and the other is that it’s a design covering the overall innovation chain. The focus of Shanghai’s policies is same as the nation’s, and the policies are also under the country’s legal framework. So Shanghai’s policies fall in line perfectly with the national policies. You may ask now if it will be fine that Shanghai just follows “the 60.” Yes, Shanghai will actively implement the nation’s 60 policies. Meanwhile, Shanghai will also embody its own features. First of all, Shanghai is a city where many state-owned enterprises concentrate. The three northeast provinces are also a region where many SOEs concentrate, and in some other provinces private companies are better developed. Different regions have different situations. Shanghai’s SOEs account for a large proportion in the infrastructure industries. How to activate these SOEs’ momentum of innovation is a key point of the attached policies. Therefore, the policies stipulate the proportion of sales that those state-owned key manufacturing companies must put into research and design. Investments in R&D, brand innovation and patent authorization and applications are also listed as the necessities of SOE appraisal. Second, Shanghai has more and more foreign, joint and private companies. They are also a big contributor to the city’s overall innovation system. The policies said these companies, including their R&D facilities, can apply for Shanghai’s science and technology development projects. Shanghai should be open enough. In addition, we will help small and medium-sized scientific and technological companies reduce innovation costs. The policies contain such measures. Also, our policies said we will develop and foster a group of small and medium-sized scientific and technological companies having strong vitality of innovation and good prospects, which is dubbed as the “small science and technology giant” project. These are our hopes. Of course, it will also have a great effect, if state-owned companies boost their input to activate innovation momentum. Actually, many medium and large SOEs have done a quite good job, such as Huayi and Baosteel. The policies make more stipulations in these aspects. The policies also give a support to the development of agent or technology broker through government purchase. In a word, the attached policies highlight some crucial problems, considering the city’s practical conditions, and remove bottlenecks. Thanks.

4. SMG TV news center: I would like to ask director Li a question. Since the “small science and technology giant” project you mentioned has been carried out, is there any new projects in these attached policies, perhaps to improve the project, or to promote small and medium enterprises’ innovation?

Li Yiping: The reporter raised a very good question. We introduced this project in the second half of last year. It caused a large echo, especially from district and county governments. We are working with district and county governments in this project. They need some time to design and set regulations on the project. This time, it specified the steps to carry out the project. Small and medium-sized companies are an important source of innovation. Sometimes, they don’t have to develop into large ones. They can attach to large-sized companies. They have their own strong suits, and then can be the suppliers or partners of large companies. They have solid core technologies, and own the intellectual property rights. Certainly, some small companies can grow up gradually, and become big ones. Our goal of the project is to develop a group of small and medium-sized companies with good potential of growth and intensive knowledge. We are looking to develop more than 100 such companies by 2010. Their combined annual sales will exceed 100 billion yuan. District and county authorities will map out their own project plans and set up special funds, according to their practical conditions. The special funds will subsidize the building of companies’ R&D facilities, product development, patent application, training, international exchange, consultation service and so on. The city government has a special fund for small and medium-sized enterprises, and the central government also has a special fund. The money, obtained from the Ministry of Science and Technology, for small and medium companies, is increasing. As I remember, last year they made more than 90 million yuan. It also verifies Shanghai’s small and medium-sized scientific companies have strong potential and brilliant prospects. The implementation of the “small giant” project will effectively help enhance companies’ innovation capabilities. Thanks.

5. Shanghai Morning Post: I have two small questions. The first one goes to director Jiang. The attached policies said those outstanding talents who have residence certificates can enjoy a series of preferential treatments, including their children are allowed to study in Shanghai. What is the appraisal standard of an outstanding talent? The second question is not related to the information released today. I would like to ask the spokesperson. Recently, a piece of news has been spreading online. Citizens will have a holiday during next month’s Shanghai Cooperation Organization Summit in town. I am not sure if the news is true. If there is no holiday, will the city control traffic in certain areas during special times? Thank you.

Jiang Yingshi: Shanghai launched the residence certificate in 2002 to introduce talents. The work, in charge of by the city’s personnel authority, has lasted more than four years. The outstanding talents who have acquired residence certificates refer to those domestic talents having bachelor or higher degrees or special skills who are approved by the city’s personnel authority to come to the city to work or open a business without changing their household registrations, according to related regulations.

Jiao Yang: As for the second question, I said just now that today’s press conference has a special topic. So I hope reporters raise questions around the topic, as I don’t want to break rules. But here I can tell you that the city government will publish information on the questions the reporter raised through the media soon.

6.Labor Daily: I have a question for either director Jiang or director Li. We see most of the 36 policies are incentive measures, such as encouraging companies to invest more in R&D. Is there any punitive measures? If companies don’t pay attention to R&D or irrationally engage in R&D, what punishment will they face?

Li Yiping: I think both the nation’s 60 policies and the city’s 36 policies mainly focus on a positive direction, instead of punishment. The attached policies are expected to encourage the whole of society to impel innovations. For foreign and private enterprises, we must create a sound environment for fair competition. For state-owned enterprises, besides leading them to fair competition, we should have a higher requirement. It is not a punishment. Both the Organization Department of the CPC Central Committee and the State-owned Assets Supervision and Administration Commission have strict regulations on SOEs’ input in innovation, forcing them to pay more attention to the companies’ R&D.

Jiang Yingshi: I think director Li has made a very clear answer. The title of the seventh of the 36 policies is just to boost the innovation momentum of state-owned enterprises. It says input in R&D, brand innovation, patent authorization and application, transformation of research results into products, pivotal industries’ scientific development and building of talent teams are necessities of the assessment on SOE officials’ achievement. We didn’t pay much attention to this aspect previously. Also, state-owned key manufacturing companies are required to invest more than 5 percent of sales in R&D.

Li Yiping: Actually, this issue has witnessed history progressing. Ten years ago, it was obviously not a proper time to stress the issue, but now it is imperative. It also embodies the philosophy of a scientific development. So authorities will increase attention to this issue.