Chapter III Measures for the Administration of Funds and Finance of the Electronic Information Industry Development Fund

Article 10 The Ministry of Information Industry shall, according to the industrial development plan, the annual work priorities and the procedures stipulated in these Measures, select projects from the project library, submit them to the Ministry of Finance for examination and approval, and sign a project contract with the project undertaker in time after obtaining the approval of the Ministry of Finance.

Article 11 The expenditure scope of the electronic development fund includes project funds and management expenses.

(1) Project funds: refers to all necessary expenditures for technical research and development of the project, mainly including: special equipment purchase and use fees, labor fees and entrusted business fees, travel expenses and conference fees, expenses for going abroad, printing and handling fees, consulting and training fees, post and telecommunications fees, etc.

1. Special equipment purchase and use fee: refers to the special material fee, special fuel fee and electricity fee incurred in purchasing or trial-producing special instruments and equipment (including special software and supporting materials) during the technical research and development of the project.

2. Labor service and entrusted business expenses: refers to the labor service expenses directly related to project research and development paid to units and individuals in the process of project technology research and development, such as research and development subsidies, manuscript fees, translation fees, review fees, entrusted business expenses paid to foreign units, etc.

3. Travel expenses and conference expenses: refers to the off-site travel expenses, local transportation expenses and conference expenses for organizing and implementing discussion, consultation and coordination activities during the technical research and development of the project.

4. Expenses for going abroad: refers to the expenses for international cooperation and exchange during the technical research and development of the project, such as the expenses for international investigation, training and exchange of researchers.

5. Printing and handling fee: refers to the intellectual property fees such as printing fee, document retrieval fee and patent application fee paid in the process of technical research and development of the project, as well as the fees for testing, inspection, sample processing and appraisal of technical research and development results.

6. Consulting and training fees: refers to consulting fees and training fees directly related to project research and development in the process of project technology research and development.

7. Postal expenses: refers to the postal expenses of letters, parcels, goods and other articles, telephone charges, telegraph charges, fax charges, network communication charges, etc. Occurred during the technical research and development of the project.

(2) Management expenses: refers to all necessary expenses incurred in the management of electronic development funds that are not included in the departmental budget of the Ministry of Information Industry, including office expenses, conference expenses, labor expenses, consulting expenses, entrusted business expenses, entrusted management fees for venture capital projects, etc.

The management fee shall not exceed 3% of the plan for the use of electronic development funds approved by the Ministry of Finance in that year.

(3) Other expenditures approved by the Ministry of Finance.

Twelfth electronic development fund mainly adopts three ways: free subsidy, loan discount and venture capital.

(a) the way of free funding.

1. Provide necessary subsidies for the research, development and pilot stage of small and medium-sized enterprises. The project undertaker needs to match its own funds with the same amount or more.

2. Provide necessary subsidies for large enterprises in the industry and key R&D projects that have a far-reaching impact on the development of electronic information industry.

The Electronic Development Fund will give sustainable support to major projects that have a far-reaching impact on the establishment of an independent innovation system in the electronic information industry and have a significant role in enhancing industrial competitiveness.

The undertaking unit of major projects should be an enterprise with strong independent innovation ability and the ability to carry out sustained large-scale R&D investment, or a technology R&D alliance and technical standards cooperation organization led by similar enterprises (hereinafter referred to as enterprise alliance). The undertaking unit should have a clear, detailed and reasonable R&D plan, with feasible phased R&D objectives, relatively stable R&D team, and clear R&D funding sources and phased investment plans. As the project undertaker of electronic development fund, enterprise alliance should have independent organization, clear operation mechanism and perfect alliance articles of association, the R&D investment of each member unit is guaranteed, and the internal achievement sharing mechanism of alliance is clear. For such projects, the support target and funding scale should be determined through preliminary expert review. After the initial capital investment, the Ministry of Finance and the Ministry of Information Industry will determine whether to continue to invest according to the evaluation results of the phased objectives.

(2) Loan discount method.

Loan discount subsidy for the promotion and demonstration of innovative information technology in the whole society and the typical application projects of mature information technology in other industries.

(3) Venture capital model.

The main purpose of venture capital is to guide social capital to invest in electronic information industry for venture capital in seed stage and start-up stage.

The risk investment management of electronic development fund shall be implemented in accordance with the relevant provisions of the risk investment management of industrial technology research and development fund.

Thirteenth electronic development fund payment management in accordance with the relevant provisions of the financial treasury management system.

At the end of the year, the Ministry of Information Industry incorporated the final accounts of the electronic development fund into the departmental final accounts and submitted them to the Ministry of Finance for approval.