Shanghai Goes All-In on AI, Biotech, and Chips With Its New "Explorer Program"

Key Points

The “Explorer Program” is Shanghai’s new public-private initiative to fund foundational basic research in integrated circuits, biomedicine, and artificial intelligence.
Participating companies must contribute a minimum of ¥3 million RMB ($415,000 USD) annually and are prohibited from setting pre-defined research topics or self-dealing.
The program has seen rapid growth, expanding from 2 to 12 enterprises by the end of 2024, with 7 of them being private companies.
Shanghai offers significant financial incentives, including one-time fiscal subsidies up to ¥10 million RMB ($1.4 million USD) for companies investing over ¥100 million RMB in basic research.
Additional incentives include 100% super tax deductions for contributions to non-profits/universities and a 50% matching fund for charitable foundations supporting basic research.

Shanghai is making a huge play to accelerate development in its most critical tech industries, launching a new set of measures to supercharge integrated circuits, biomedicine, and artificial intelligence.

The city’s government just dropped what it calls the “Measures of Shanghai Municipality to Support Enterprises in Strengthening Basic Research,” and at the center of it all is a fascinating initiative: the “Explorer Program.”

Let’s break down what this is and why it matters.

So, What Exactly is Shanghai’s “Explorer Program”?

Think of the “Explorer Program” as a public-private partnership on steroids, designed to tackle the biggest scientific questions holding back future industries.

It’s a science and tech fund co-bankrolled by the Shanghai Municipal Science and Technology Commission and private co-funders (like corporations and industry groups).

The goal isn’t to build another app.

It’s about funding foundational, basic research that aligns with Shanghai’s most important sectors—the deep-tech stuff that leads to massive breakthroughs down the road.

The program is open to researchers across the entire city on a fair and competitive basis, aiming to get the best minds working on the hardest problems.

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The Rules of the Game: How Companies Get In

Not just anyone can become a co-funder. Shanghai has laid out some clear ground rules to keep the program focused and effective.

Here’s the deal for co-funders:

Minimum Check Size: You need to bring at least ¥3 million RMB ($415,000 USD) to the table every year.

It’s About the Science: Co-funders must prioritize the scientific validity of research proposals. They are explicitly prohibited from setting pre-defined research topics. This is about asking big questions, not assigning homework.

No Self-Dealing: A co-funder and its affiliates cannot be the ones actually doing the research they helped pay for. This keeps the process fair and prevents conflicts of interest.

Tax Perks: Companies who chip in can enjoy tax incentives for their contributions, sweetening the deal.


Requirement	Details
Annual Contribution	Minimum ¥3 million RMB ($415,000 USD)
Research Focus	Prioritize scientific validity; cannot set pre-defined topics
Conflict of Interest	Prohibited from self-dealing (funding own research)
Incentives	Eligible for tax incentives on contributions

From 2 to 12: The Program’s Rapid Growth and Big-Name Backers

This isn’t just an idea on a whiteboard. The “Explorer Program” first kicked off back in 2021, and its growth has been impressive.

By the end of 2024, the number of participating enterprises ballooned from just 2 to 12, with 7 of them being private companies.

And we’re not talking about small players. The list includes:

Heavy hitters in national infrastructure like Commercial Aircraft Corporation of China (Zhongguo Shangfei 中国商飞), Shanghai Electric (Shanghai Dianqi 上海电气), and the Shanghai Nuclear Engineering Research and Design Institute (Shanghai He Gongyuan 上海核工院).

Future-focused groups like the Shanghai Synthetic Biology Industry Association (Shanghai Synthetic Biology Gongye Xiehui 上海合成生物产业协会).

These organizations aren’t just writing checks. They act as “question setters” and “evaluators,” helping to identify the most critical scientific hurdles the industry faces so that scientists at universities and research labs can focus their brainpower where it’s needed most.


Metric	Value
Total Enterprises	12
Private Companies	7
Growth from 2021	From 2 to 12 enterprises

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Show Me the Money: Unpacking the New Financial Incentives

To pour fuel on the fire, Shanghai’s latest “Measures” include some serious financial incentives to get more companies investing in basic research. They’re basically handing out “fishing rods” in the form of cash subsidies, tax breaks, and matching funds.

Huge Subsidies for Big R&D Spenders

Shanghai is rewarding enterprises that invest heavily in basic research with one-time fiscal subsidies. The breakdown is simple:

Invest ¥100 million RMB ($13.8 million USD) or more in basic research?

Here’s a ¥10 million RMB ($1.4 million USD) subsidy.

Invest between ¥50 million RMB ($6.9 million USD) and ¥100 million RMB?

You get a ¥5 million RMB ($690,000 USD) subsidy.

Invest between ¥10 million RMB ($1.4 million USD) and ¥50 million RMB?

Take a ¥2 million RMB ($276,000 USD) subsidy.

More Than Just Cash: Tax Breaks & Matched Funds

The support doesn’t stop with direct cash.

Aggressive Tax Deductions: Companies supporting basic research at non-profits, universities, or government science funds can deduct the full expense plus an additional 100% super deduction before tax. That’s a massive incentive.

Matching Funds for Foundations: Shanghai will match 50% of the investment made by charitable foundations that are set up to support basic research.

University-Enterprise Labs: For collaborative innovation centers set up between universities and enterprises, the government will contribute funds at a 1:1 ratio with the company.


Investment in Basic Research (RMB)	Investment in Basic Research (USD)	One-Time Fiscal Subsidy (RMB)	One-Time Fiscal Subsidy (USD)
≥ ¥100 million	≥ $13.8 million	¥10 million	$1.4 million
¥50 million – < ¥100 million	$6.9 million – < $13.8 million	¥5 million	$690,000
¥10 million – < ¥50 million	$1.4 million – < $6.9 million	¥2 million	$276,000

Additional Financial Incentives for Basic Research

Tax Deductions: 100% super deduction for contributions to non-profits, universities, or government science funds.
Matching Funds: 50% matching for charitable foundations supporting basic research.
University-Enterprise Labs: 1:1 government funding ratio for collaborative innovation centers.

Why This Is a Game-Changer

For decades, basic research in China has been almost entirely funded by the government. This is a massive strategic shift.

By creating a powerful public-private funding model, Shanghai is unlocking a new pool of capital and, more importantly, ensuring that research is directly tied to a real-world industrial need.

For investors, founders, and tech watchers, this is a signal that Shanghai is getting deadly serious about building a deep-tech ecosystem that can compete on the global stage.

They’re not just funding the next quarter’s product update; they’re investing in the fundamental science that will create entirely new industries over the next decade.

This focus on foundational research is a long-term, strategic play to cement Shanghai’s leadership in the future of AI, biotech, and integrated circuits.