China Daily learned from the Zhongguancun Management Committee on Nov 28 that 1,485 technology SMEs have received a total of over 120 million yuan($17.30 million) research and development subsidies.

A list of the first group of enterprises that received R&D subsidies is released. [Photo provided to chinadaily.com.cn]

The subsidies are granted to encourage and support SMEs to advance in the development and transformation of "hard technology".

SMEs are the most innovative group with the greatest entrepreneurial potential among Zhongguancun private companies, but they face such problems as rising operating costs, financing difficulties and the lack of policy awareness.

The most prominent of their problems is the shortage of independent research and development funds.

Xue Licheng, vice president for research and development at Starblaze Technology, puts forward suggestions. [Photo provided to chinadaily.com.cn]

In order to support technology SMEs to carry out R&D investment and accelerate innovation, the Zhongguancun Management Committee introduced the Management Measures for Supporting Funds of Technological SMEs in the Zhongguancun National Independent Innovation Demonstration Zone on Mar 14, 2018.

The policy directly subsidizes the R&D expenses of Zhongguancun SMEs. All high-tech enterprises that meet basic indicators and have no credit risk can receive financial support.

The enterprises receiving R&D subsidies are in the top ten high-tech industries in Beijing. Companies engaged in software and information services, new generation information technology and medical and health fields account for 50%, 13.7%, and 10.5%, respectively.

According to sources, more than half of the employees of most SMEs are technical R&D personnel, and their labor costs account for over 66% of R&D expenses.

Weng Qiwen, deputy director of the Zhongguancun Management Committee, shares his views. [Photo provided to chinadaily.com.cn]

"These subsidies can help us retain excellent scientific research talents," said Xue Licheng, vice president for research and development at Starblaze Technology. He added that subsidies that accurately target SME groups can support them in tiding over difficulties in a scientific and innovative way.

Weng Qiwen, deputy director of the Zhongguancun Management Committee, remarked that the R&D and transformation of "hard technology" constitute an important part of innovation and entrepreneurship in Zhongguancun.

"R&D subsidies, on the one hand, can encourage enterprises to take a further step in independent innovation; on the other hand, they can accurately support the R&D of technologies, and strengthen the confidence of companies in developing new technologies," he noted.