Shanghai boosts SME innovation with 10 new measures

Shanghai has unveiled 10 measures in support of small and medium-sized enterprises (SMEs) focused on core technologies and innovation. The initiative, announced during a recent national SME conference in the city, targets key sectors such as artificial intelligence and low-altitude technologies.

The firms are developing laser radars for autonomous driving, AI models to generate music and images by text, and conducting research on superconducting materials. They attended the three-day conference in Zhangjiang in the Pudong New Area over the weekend, along with national and city officials.

The measures include establishing industrial zones, building service centers, and financial support such as easy access to capital markets and special bank loans with quota up to 400 billion yuan (US$55.5 billion).

More SMEs have emerged and working with industries, universities and research institutes on innovation and industrial upgrading, Jin Zhuanglong, China's minister of industry and information technology.

The development of SMEs will optimize the supply chain for the city's strategic industries such as artificial intelligence, biomedicine and chips, industry officials said.

In details, Shanghai will build 55 industrial zones and 34 SME industry clusters. In the zones, the city will help SMEs cut costs by up to 15 billion yuan covering land, electricity, water and Internet use.

The new authorized "little giant" firms will be awarded 100,000 yuan or 300,000 yuan. "Little giant" firms are the new elite of SMEs and medium-sized enterprises engaged in manufacturing, specializing in a niche market and possessing the latest technologies.

Loans valued at 400 billion yuan, specifically for firms with core technology results, will be offered by commercial banks. Each firm will get a guarantee increased to 30 million yuan now from the previous 20 million yuan. In Shanghai, various funds supporting SME development have hit 10 billion yuan, local officials said.

Currently, China has 141,000 SMEs with core technology innovations, with over 11,000 in Shanghai. The city has 900 national-level little giant firms.