A panorama of Xiamen Software Park. [Photo provided to chinadaily.com.cn]

Xiamen, in eastern Fujian province, recently issued several powerful measures to further support the city's technological innovation.

In order to increase research and development investment and enhance the competitiveness of companies in Xiamen, the city has an active R&D subsidy policy.

According to the amount of R&D expenses - under its policy of additional tax deductions for corporate R&D – a company can be supported in the form of basic subsidies and with incremental subsidies.

The basic part shall be subsidized by 10 percent and the incremental part by 12 percent. For large companies with a main business income of 2 billion yuan ($289.54 million) or above, and annual R&D investment of 50 million yuan or above, the maximum subsidy is 8 million yuan. The ceiling for other companies is 2.5 million yuan.

To encourage the emergence of advanced innovation carriers, a one-time subsidy of 2 million yuan will be granted to key provincial and municipal laboratories established by private companies. For those established by universities, scientific research institutes, medical institutions and other legal entities, a one-time subsidy of 1 million yuan will be granted.

Key provincial and municipal laboratories rated with excellent or fine performance evaluations will be rewarded with 500,000 yuan and 200,000 yuan, respectively.

A one-time grant of 10 million yuan will be given to newly approved national key laboratories, national technology innovation centers, national engineering research centers and national clinical medicine research centers, that are closely connected with Xiamen's industries.

New R&D institutions - in such fields as biological medicines, the internet of things, big data, integrated circuits, artificial intelligence, new materials and new energy – will also get a subsidy. Those established by domestic and foreign universities, research institutes, companies, institutions and social organizations with market-oriented operations in Xiamen shall be subsidized with a one-time fund of 1 million yuan for their initial establishment. If the institution is confirmed as a major R&D institution, it shall be granted up to 5 million yuan for one time.

After granting 50 percent of the total purchase of new scientific research instruments, equipment and software to R&D institutions, additional subsidies will be given. The maximum subsidy for new R&D institutions is 30 million yuan over five years, and the maximum subsidy for major R&D institutions is 50 million yuan (the maximum amount is 20 million yuan for a non-independent legal entity).