Guangxi Science and Technology Department holds a press conference to introduce the Incentives to Increase Research and Development of Enterprises. [Photo/gxst.gov.cn]

In order to increase support for enterprise innovation and guide enterprises to increase investment in research and development, Guangxi Zhuang autonomous region has issued the Incentives to Increase Research and Development of Enterprises.

Currently, Guangxi is in a critical period of transformation and upgrading. The technological innovation of enterprises is a key focus of the high-quality development of the regional economy.

Qian Jian (L), deputy director of the Guangxi Science and Technology Department, speaks at the press conference. [Photo/gxst.gov.cn]

According to Qian Jian, deputy director of the Guangxi Science and Technology Department, the main content of the Incentives include the basis for formulating the implementation measures, the scope, method, application procedure, departmental responsibilities, and management norms for awards and subsidy funds for R&D investment of enterprises. He also indicated that the rewards and subsidies were for enterprises that enjoyed the preferential policies of pre-tax deduction policy for research and development expenses and adopted post-subsidy. 

The financial awards include incremental awards and special awards. In the cases of incremental awards, the calculation base is the increment of R&D investment in the previous year. Enterprises above designated size will receive an incremental award of no more than 5 million yuan ($727,749) according to the R&D investment intensity. Other enterprises will be given no more than 2 million yuan according to a R&D investment ratio of eight percent.

On the premise that the enterprises' investment in R&D in the previous year does not fall by more than 10 percent, enterprises with a R&D investment ratio of no less than three percent in the previous year and a R&D expenditure of no less than 20 million yuan will receive a special award of two percent of their previous year's R&D expenditures. The total amount of special awards for each enterprise is no more than 3 million yuan per year.

"The Incentives will strengthen the guidance of R&D investment intensity, and effectively encourage enterprises with large R&D investment through special awards," said Qian.

Automation equipment at work in an industrial park of Guangxi Zhuang autonomous region. [Photo by Chen Guanyan/chinanews.com]