Guiding Opinions of the State Council on Promoting Enterprise Technological Transformation

 State Council Document [2012] No. 44

People's Governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all ministries and commissions of the State Council, and all directly affiliated institutions:
       Technological transformation refers to the investment activities in which enterprises adopt new technologies, new processes, new equipment, and new materials to renovate and upgrade existing facilities, process conditions, and production services, eliminate backward production capacity, and achieve connotative development. It is an important way to realize technological progress, improve production efficiency, promote energy conservation and emission reduction, and ensure safe production. Promoting technological transformation in enterprises is of great significance for optimizing investment structure, cultivating consumer demand, promoting independent innovation, accelerating structural adjustment, and advancing industrial upgrading. It is an important measure to promote the transformation of industrial development mode and achieve scientific development. For a long time, regions, departments, and enterprises have actively implemented the decisions and deployments of the Party Central Committee and the State Council, vigorously carried out technological transformation in enterprises, achieved remarkable results, significantly improved industry technology levels, greatly enhanced enterprises' comprehensive competitiveness, and played an important role in promoting the sustained and healthy development of China's industry. Currently, the internal and external environment of China's economic development is undergoing profound changes. The new era and new situation put forward higher requirements for technological transformation. There are still problems such as the need to deepen understanding, establish long-term mechanisms, lack of effective guidance for investment direction, and the need to further streamline management systems. Practical measures must be taken to study and solve these issues promptly. The following guiding opinions are hereby put forward to further accelerate and promote technological transformation in enterprises:
        I. Overall Requirements
       Guided by Deng Xiaoping Theory and the important thought of the "Three Represents," thoroughly implement the Scientific Outlook on Development, take accelerating the transformation of the economic development mode as the main line, focus on promoting industrial transformation and upgrading and enhancing industrial competitiveness, take enterprises as the main body, market-oriented, and innovation-driven, improve policies, strengthen management, enhance enterprises' technological innovation capabilities, accelerate the industrialization of innovation achievements, speed up the transformation and upgrading of traditional industries, cultivate and develop emerging industries, and comprehensively improve the quality and efficiency of industrial development.
       In the new era, the work of technological transformation in enterprises should closely revolve around the new requirements of industrial development, pay more attention to enhancing technological innovation capabilities and industrializing innovation achievements to improve the core competitiveness of industries; pay more attention to energy conservation, consumption reduction, emission reduction, and pollution control to promote green development; pay more attention to the integrated application of information technology, promote deep integration of informatization and industrialization; pay more attention to building industrial public service capabilities and consolidating industrial foundations; pay more attention to industrial transfer and cluster development to optimize industrial layout.
　　To promote technological transformation in enterprises, we must adhere to the combination of market leadership and government guidance, the combination of technological innovation and technological transformation, the combination of transforming traditional industries and developing emerging industries, and the combination of focusing on key points and comprehensive improvement. By 2015, the proportion of technological transformation investment in industrial investment will be significantly increased, enterprises' independent innovation capabilities will be significantly enhanced, the output value rate of new industrial products will be significantly improved, the proportion of advanced production capacity, resource and energy utilization efficiency, clean production, and enterprise safety levels will be significantly improved, the policy environment and institutional mechanisms for promoting technological transformation in enterprises will be more sound, and the informatization application of key industries and backbone enterprises will reach international advanced levels.
　　 II. Key Tasks
       (1) Promote technological innovation and industrialization of scientific and technological achievements. Targeting key areas and weak links, break through a batch of common key technologies, accelerate the industrial application of advanced technologies, improve domestic security capabilities for basic raw materials, basic components, major equipment, and core technologies, improve the level of technical standard research and formulation, and promote the enhancement of technological innovation capabilities. Encourage and support the renovation and upgrading of innovation carriers such as enterprise technology centers, engineering laboratories, and major scientific infrastructure, cultivate a number of technology innovation demonstration enterprises with good R&D foundations, abundant intellectual property rights, and strong industry driving force, strengthen open cooperation, and enhance enterprises' innovation capabilities. Promote the establishment of a collaborative innovation system with enterprises as the main body, integrating production, education, research, and application, actively explore models such as leading industrial development by technical standards and entrepreneurship around innovation achievements, promote close integration of scientific research and production, fully leverage the creativity and enthusiasm of market entities, and accelerate the industrialization of scientific and technological achievements.
       (2) Improve equipment levels. Accelerate the elimination of backward process technologies and equipment, promote the application of advanced manufacturing systems, intelligent manufacturing equipment, and large-scale complete technical equipment such as automation, digitization, networking, and intelligence. Support key enterprises to target world-leading technologies, accelerate equipment upgrading and transformation, and promote key technical equipment in key areas to reach international advanced levels. Implement equipment innovation projects to continuously improve the technical level of the equipment manufacturing industry.
       (3) Promote green development. Implement technological transformation to improve industrial energy efficiency, clean production, and comprehensive resource utilization. Accelerate the promotion and application of advanced domestic and foreign energy-saving, water-saving, and material-saving technologies and processes, promote the green design and R&D system of industrial products, and improve energy and resource utilization efficiency. Increase the popularization rate of mature and applicable clean production technologies. Strengthen the prevention and control of heavy metal and hazardous chemical pollution. Support the recycling and utilization of industrial waste, waste products, and materials, as well as the comprehensive utilization of low-grade and associated mineral resources, actively develop circular economy and remanufacturing industries. Cultivate a number of resource-saving and environment-friendly demonstration enterprises.
       (4) Optimize product structure. Accelerate product upgrading and replacement, improve product technology content and added value. Promote lean manufacturing, improve process flow, strengthen process control, and improve manufacturing levels. Improve inspection and testing methods, implement advanced quality management, and improve product quality. Develop advanced production capacity, increase product varieties, and improve the contribution rate of new products. Strengthen brand building and cultivate a number of internationally renowned brands.
       (5) Promote the integration of informatization and industrialization. Deepen the application of information technology in all stages of the product life cycle including R&D design, production manufacturing, marketing management, and recycling, accelerate the promotion and application of key common technologies such as modern production management systems, support enterprises in popularizing and integrating management information systems such as manufacturing execution, resource planning, and customer relationship management. Promote embedded application of information technology in industrial products to improve the intelligence level of industrial products. Support the construction of information service platforms oriented to enterprises, regions, and industries.
       (6) Deepen military-civilian integration. Enhance core capabilities such as overall design, final assembly testing, and system integration, promote the development of military-civilian integrated industries such as nuclear energy, shipbuilding, aircraft, electronic information, and civil explosives. Leverage military technology advantages, guide the development of emerging industries such as energy-saving and environmental protection, new materials, new energy, and security and anti-terrorism equipment that share the same origin or similar processes with military technology. Support the industrialization and mutual transformation of military-civilian dual-use technologies, encourage the application of advanced and mature civilian technology equipment in the national defense science and technology industry.
       (7) Promote safe production. Implement technological transformation of high-risk industrial products, production processes, and equipment, strengthen the security protection of industrial control systems. Accelerate the upgrading and replacement of safety production management and monitoring early warning systems, emergency handling systems, hazardous materials production, storage, and transportation equipment and facilities, and improve the intrinsic safety level of industrial enterprises.
       (8) Enhance industrial cluster levels. Encourage industrial cluster development, guide enterprises, projects, and factors to concentrate in existing parks and bases, promote coordinated transformation of leading enterprises and supporting enterprises, support technological transformation of the entire industrial chain including R&D design, production manufacturing, and marketing services, and promote industrial layout development towards industrial support, specialized cooperation, intensive and efficient factor utilization, and ecological environmental protection.
(9) Strengthen the construction of public service platforms. Support the upgrading and transformation of public service platforms for R&D design, quality certification, testing and inspection, information services, and comprehensive resource utilization in key industrial parks. Integrate relevant resources to build a number of industrial technology innovation and service platforms, quality and safety technology demonstration platforms, enterprise integrity information management platforms, and comprehensive information service platforms for key industries. Increase support for technological transformation of small and medium-sized enterprises, and establish and improve a number of public service platforms and productivity promotion centers for SMEs.
　　 3. Guarantee Measures
(1) Strengthen policy planning guidance. Scientifically formulate development plans for key industries and fields, improve industrial policies for key industries, and enhance the guidance of planning and industrial policies on technological transformation work. Study and formulate investment guidelines for technological transformation, and release annual key project orientation plans. Improve the industrial technology standards system, carry out industrial product safety, energy efficiency, environmental protection, hygiene, and reliability compliance transformation actions in key industries and fields, and improve incentive and restraint mechanisms for technological transformation.
(2) Increase financial support. Leverage government investment to guide social investment, with central and local finances further increasing support and investment in technological transformation, focusing on key areas and critical links of industrial transformation and upgrading. Continuously innovate and optimize fund management methods, flexibly use various support forms, and improve the efficiency of fiscal fund use.
(3) Improve tax incentive policies. Make good use of existing tax incentive policies to support enterprise technological transformation, including allowing VAT input tax on purchase or self-made machinery and equipment by general VAT taxpayers to be deducted from output tax as prescribed; accelerated depreciation of fixed assets under the Corporate Income Tax Law; tax credits for investments in special equipment for environmental protection, energy saving, water saving, and safety production at certain proportions; additional deduction of R&D expenses from income tax; tax reduction or exemption for technology transfer; preferential corporate income tax for recognized high-tech enterprises; exemption from import duties within prescribed limits for advanced equipment needed for nationally encouraged projects that cannot be produced domestically; import tax incentives for key components and raw materials necessarily imported by domestic enterprises for producing major technical equipment supported by the state. Steadily promote the reform of replacing business tax with VAT, gradually including the transfer of intangible assets such as technology patents, trademarks, and brands into the VAT scope, supporting enterprise technological transformation.
(4) Broaden financing channels. Strengthen coordination between credit policies and industrial policies, guiding financial institutions to increase financing support for enterprise technological transformation. Vigorously promote innovation in financial products and service methods, developing financial products and service models suitable for the funding needs of enterprise technological transformation. Encourage financial institutions to improve comprehensive service capabilities such as project screening, evaluation, pricing, and risk control, provide diversified financing convenience for technological transformation projects, increase credit investment in technological transformation projects through fiscal interest subsidies, intellectual property pledges, etc., and target support for national key and industry upgrade-aligned technological transformation projects. Support enterprises to carry out technological transformation through financing leases and actively guide and support enterprises to expand direct financing scale for technological transformation through listing financing, issuing corporate bonds, enterprise bonds, and medium-term notes. Regulate the development of industrial investment funds and equity investment funds, guiding private capital to support enterprise technological transformation.
(5) Improve management mechanisms. Establish a clear responsibility, scientific and efficient management mechanism for enterprise technological transformation work, optimize workflows, and improve management levels. Establish and improve a unified national industrial technological transformation investment statistics system, strengthen monitoring, analysis, and information release of enterprise technological transformation investment. Focus on enterprise development needs, strengthen vocational education, and cultivate high-quality skilled talents for enterprise technological transformation and industrial upgrading. Improve technological transformation project management systems, establish investment effect assessment mechanisms, strengthen investment benefit analysis and evaluation, and supervise government investment projects.
　　All regions and departments should further unify their thinking, deeply understand the importance and urgency of promoting enterprise technological transformation, further strengthen organizational leadership, and effectively increase work efforts. People's governments of provinces (autonomous regions, municipalities) should incorporate the promotion of enterprise technological transformation into important government agendas, accelerate the introduction of specific measures and methods based on actual conditions, and ensure implementation. Relevant departments of the State Council should strengthen coordination and cooperation, enhance work guidance and supervision, and ensure that all policy measures are implemented. Further play the bridging role of industry associations, fully mobilize the enthusiasm and initiative of enterprises, form a joint force, and jointly create a new situation in enterprise technological transformation work.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　State Council
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　September 1, 2012