Shanghai steps up efforts to attract technology businesses, boost innovation

Shanghai has pledged to give financial and policy support to its northeastern Yangpu district as part of the city’s efforts to bolster technological innovation as a way of combating an economic slowdown.

Yangpu district announced that qualified foreign professionals working for technology firms based in its 2.3 million square metre innovation zone would be granted permanent residency, while it would set up its own loss-proof mechanism to encourage investments in start-ups.

“It is a renewed effort by Shanghai to attract technology companies,” said Ray Lu, a director with Hotung Ventures. “The district government is likely to earmark a massive amount of funds to subsidise businesses engaging in tech transfers.”

Yangpu is the only region of Shanghai designated by the central government as a pilot zone for technology development.

The district’s governor Xie Jiangang told a press conference last week that it would make proper fiscal arrangements to reinforce the growth of technology start-ups based in the district.

“Tech transfer remains the biggest stumbling block to a flourishing growth of technology companies,” he said. “We will try to make a breakthrough in the key areas to facilitate the process.”