Key Points
- Shanghai has launched new measures to supercharge R&D in integrated circuits, biomedicine, and artificial intelligence through the “Explorer Program” (Tansuo Zhe Jihua 探索者计划).
- The “Explorer Program” is a public-private partnership where companies co-fund basic scientific research, started primarily by the Shanghai Municipal Science and Technology Commission (Shanghai Shi Kexue Jishu Weiyuanhui 上海市科学技术委员会).
- Co-funders must contribute no less than ¥3 million RMB ($414,200 USD) annually, receiving significant tax incentives, and cannot perform the research they fund to ensure fairness. By 2024, corporate partners increased from 2 to 12.
- New direct cash subsidies are offered: companies investing ¥100 million RMB or more in basic research receive a ¥10 million RMB subsidy.
- Tax incentives are substantial, allowing companies to deduct 100% additional to their full donation to non-profit basic research institutions, alongside a 50% government co-funding match for projects backed by basic research public welfare foundations.
Shanghai just dropped a game-changing new policy to supercharge its integrated circuits, biomedicine, and artificial intelligence industries, and if you’re an investor, founder, or tech enthusiast, this is something you need to see.
On August 4, 2025, the Shanghai government unveiled a new set of “Measures” designed to get more companies pouring cash into fundamental, groundbreaking research.
The centerpiece of this strategy is expanding a unique public-private partnership called the “Explorer Program” (Tansuo Zhe Jihua 探索者计划).
Let’s break down what this is, how it works, and why it’s a massive deal for the future of tech.
What Exactly is Shanghai’s “Explorer Program”?
Think of the Explorer Program as a government-backed venture fund for moonshot R&D.
It’s a technology project model where the Shanghai Municipal Science and Technology Commission (Shanghai Shi Kexue Jishu Weiyuanhui 上海市科学技术委员会) and private co-funders pool their money to back basic scientific research.
The goal isn’t to build the next hit app.
Instead, it’s about tackling the deep, underlying scientific problems that could unlock the next generation of technology across Shanghai’s most critical industries.
Historically, most of this “basic research” funding in China came straight from the government. This program changes the game by bringing corporate skin—and money—into the mix.
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How It Works: The Mechanics of the Program
The program, which started back in 2021, is built on a few simple but powerful rules.
It’s designed to be a fair, open competition for the best ideas, attracting researchers from across the city’s universities and institutes.
- Who can co-fund? Primarily enterprises, industry associations, or other legal entities registered in Shanghai.
- What’s the buy-in? Co-funders must contribute no less than ¥3 million RMB ($414,200 USD) per year.
- What’s the perk? In return, they get valuable tax incentives for their contributions.
- What’s the catch? To ensure fairness, co-funders help set broad research guidelines, not specific projects. Crucially, they and their affiliates are not allowed to be the ones who carry out the research they helped fund.
This model is already gaining serious traction.
By the end of 2024, the number of corporate partners had jumped from just 2 in 2021 to 12.
The list includes major “national great power” players like:
- Commercial Aircraft Corporation of China, Ltd. (Zhongguo Shang Fei 中国商飞)
- Shanghai Electric (Shanghai Dianqi 上海电气)
- Shanghai Nuclear Engineering Research and Design Institute (Shanghai He Gongyuan 上海核工院)
It also includes forward-looking organizations like the Shanghai Synthetic Biology Industry Association (Shanghai Hesheng Shengwu Chanye Xiehui 上海合成生物产业协会).
These companies act as “topic setters,” flagging the real-world scientific hurdles their industries face, and then the academic world gets to work on solving them.
The August 4th Bombshell: Supercharging the “Big Three”
The new measures announced on August 4th are all about doubling down on this model and aiming it squarely at three key sectors:
- Integrated Circuits (Semiconductors)
- Biomedicine
- Artificial Intelligence (AI)
The government is explicitly encouraging more companies from these “big three” industries to join the Explorer Program.
Even better, they’ve promised to provide rapid support for urgent and critical research topics proposed by these key enterprises.
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The Financial Firepower: A Breakdown of the New Subsidies & Incentives
This isn’t just talk. Shanghai is putting serious money and compelling incentives on the table to get companies to open their wallets for basic research.
The new “Measures” are designed to make investing in R&D a no-brainer.
Direct Cash Subsidies for R&D Spenders
Shanghai is now offering one-time financial subsidies to companies based on their annual investment in basic research. Here’s the breakdown:
- Invest ¥100 million RMB ($13.81 million USD) or more in basic research? Get a ¥10 million RMB ($1.38 million USD) subsidy.
- Invest between ¥50 million RMB ($6.9 million USD) and ¥100 million RMB? Get a ¥5 million RMB ($690,300 USD) subsidy.
- Invest between ¥10 million RMB ($1.38 million USD) and ¥50 million RMB? Get a ¥2 million RMB ($276,120 USD) subsidy.
A Sweet Deal on Taxes
The tax incentives are incredibly attractive.
When a company donates to basic research at a non-profit university or research institution, that entire amount can be deducted before tax.
On top of that, they can deduct an additional 100% of that amount.
It’s a powerful financial lever to encourage corporate support for science.
Fueling a Philanthropic Flywheel
The government is also encouraging the creation of basic research public welfare foundations.
For any basic research project backed by one of these foundations, the government will provide a 50% co-funding match.
This helps pull even more private and social capital into the R&D ecosystem.
Bridging the Gap Between Lab and Industry
Finally, the measures support the creation of collaborative innovation centers between universities and enterprises.
The government and companies will jointly contribute funds at a 1:1 ratio to help university researchers tackle key scientific and tech issues that are directly relevant to industry.
- Integrated Circuits (Semiconductors)
- Biomedicine
- Artificial Intelligence (AI)
- Tax Deduction: 100% additional deduction for donations to non-profit basic research institutions.
- Government Co-funding: 50% match for projects backed by basic research public welfare foundations.
- Collaborative Innovation Centers: Government and companies jointly contribute funds at a 1:1 ratio.
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What This Means for the Future of Shanghai Tech
Shanghai’s new strategy is a masterclass in modern industrial policy.
It’s not just throwing money at a problem.
It’s creating a sophisticated, multi-pronged system that uses financial subsidies, huge tax breaks, and public-private partnerships to de-risk and incentivize the kind of deep, foundational R&D that leads to true technological breakthroughs.
By focusing this immense firepower on the world’s most critical tech sectors, this strategic push with new policies for integrated circuits, biomedicine, and AI firmly establishes Shanghai as a global deep-tech hub to watch closely.
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