The State Council decided to include Shanghai in the country's systematic innovation reform. (Photo : Reuters)
The State Council presided over by Premier Li Keqiang has decided on Wednesday, March 30, to transform Shanghai into a comprehensive science center within three years through the implementation of the systematic innovation reform, China Daily reported.
The reform also includes the establishment of new independent districts in east, central and northeast China, in a bid to enhance innovation-driven development and supply-side economic reform.
The report said that the reform will involve three regions, namely, Henan Province (Zhengzhou, Luoyang and Xinxiang), the Shandong Peninsula and Liaoning Province (Shenyang and Dalian).
The State Council's decision would mean that companies involved in innovation activities will face fewer hurdles from local government, while more flexible policies in research funding, the transfer of scientific research findings and collaboration between universities and local enterprises will be granted to Shanghai.
The municipality will also try out different ways to streamline foreign investment procedures.
Shanghai has spent 83.1 billion yuan ($12.82 billion) in research and development in 2014, which accounted for 3.6 percent of its GDP.
The plan to establish itself as a technological innovation center was approved by the city in May last year.
According to Lin Lei, a researcher at the Center for Innovation and Development at the Chinese National Academy of Sciences, Shanghai has been chosen for its strong collaboration with overseas companies and its ability to take quick steps to welcome innovation talent.
"The city carried out favorable policies to attract overseas talent years ago," Lin said.
In 2009, the country has established 11 self-innovation demonstration areas, including the Zhongguancun technology hub in Beijing, the first of its kind to be set up in the area.
As part of the country's economic transition efforts, these policies were designed to boost industrial upgrading in central and northern China, Shi Yulong, a researcher with China's regional economy at the Academy of Microeconomic Research at the National Development and Research Center, said.
"China's east, central and west regions have faced a large economic gap due to the opening-up policy in the 1980s," Shi said. "Now a gap is emerging between the north and the south, as northern China faces bigger challenges in upgrading such industries as iron, steel and coal."
The three regions set to become innovation districts have been selected due to their innovation infrastructure, Shi said, citing Liaoning Province, which had taken strides in robot research and sales.
