Shanghai is not only the economic powerhouse but also an important science and technology centre in China. In the 1990s, Shanghai has formed a multi-tier structure covering fundamental research, applied research, technology development and commercialisation of scientific advances.

Research Institutions

Today, the city has 1,150 research and development institutions specialised in different fields. Among the total, 290 are state-owned institutions with independent accounting. There are 842,000 professional technicians and scientists in the city.In 1997,the contribution rate of science and technology to the economy reached 41.02 per cent.

International Cooperation

Shanghai's international cooperation in science and technology has been growing rapidly. Nearly 80 Percent of local research institutions have set up close cooperation and exchanges with their counterparts from over 60 countries and regions in the world. They have also forged cooperative relationships with scientific organisations in more than 10 countries. The diversified exchanges and cooperation have pooled the efforts of state governments, local governments, research institution and their factories, universities home and abroad and multinational corporations. Each year, some 10,000local scientists and technicians would travel overseas to attend international conferences, make technical surveys and hold talk on cooperative projects. Meanwhile, the city receives several hundreds of government delegations on science and technology, brining about 1,000 members from other parts of the world. In addition, dozens of thousands of foreign experts and technicians are invited to come to Shanghai for cooperative projects every year. The city also hosts more than 50 international conferences on science and technology every year. Some Well-known conferences, such as "World Maritime Conference,""International Digest System Conference" and "International Wire and Cable Conference" are held in Shanghai Regularly. The city has also launched a number of technology fairs and exhibitions in Europe, America, Australia and Asia. Over the past several years, the city's Science and Technology Commission has made great efforts in helping local research institutions promote international exchanges, absorbing overseas investment and introducing advanced equipment and technology from abroad. The government also commissioned overseas organisations to undertake some research projects and help develop joint development projects between local institutions and their multinational counterparts.The commission's endeavour has provided favourable conditions for the city's science and technology industry to enter the international competition.

Cooperation Projects

Today, Shanghai is undertaking nearly 100 groups of projects jointly sponsored by state governments and local governments. By focusing on key priorities in science and technology development, these projects feature high starting level and high standards. Shanghai has signed long-term cooperation agreements with Baden-Wurttemberg (Germany), Rhone-Alpes (France), Quebec (Canada), British Columbia (Canada), Saint Petersburg (Russia), Serbia (Yugoslavia) and Ho Chi Minh City (Vietnam). It has also set up projects on new materials, agriculture, food processing, new drugs and biotechnology with South Korea, the United States, Singapore, Yugo-slavia, Hungary and Pakistan. Concentrating its efforts on introducing foreign capitals and technologies, Shanghai has facilitated the introduction of a number of joint ventures and cooperative projects involving new and high technologies. They include Intel's integrated circuits manufacturing project and projects in co-operation with AT&T, Smith Kline, NEC, Fujitsu, Hyundai and Roche. In order to boost high-tech industrialisation, the city has promoted exchanges with relevant foreign semi-official and non-governmental organisations, such as" Partner Program" of Ministry of Industry and Trade of Finland, Switzerland-China Economic Cooperation Agreement, Japan-China Scientific Cooperation Association, Personnel Exchange Centre of Fukuoka and Russian Advanced Materials Research Centre.

Technology Export

Power plant equipment, electric machinery, textile,chemical and building materials constitute the main part of the city's technology export. In recent years, Shanghai has witnessed a sharp growth in export of contracted projects of telecom equipment and new and high technology products. The Science and Technology Commission of Shanghai Municipality has staged a series of technology fairs and exhibitions in Europe, America, Asia and Australia. With further development of its economy and foreign trade, Shanghai expects to see an average annual increase of 40 percent in its technology export. By the year of 2000, Shanghai's technology export will reach $1 billion.

Rice Genome Physical Mapping Research Project

A research team headed by Mr. Hong Guofan, academician of Chinese Academy of Sciences and researcher with the National Rice Genome Research Centre, has completed for the first time in the world a BAC-contig map of the rice genome with 12 chromosomes. The map was the result of numerous meticulous experiments and analyses which were conducted with a unique approach. Coupled with available genetic information, The map enables breeders produce high-yield,high-quality and disease-resistant rice. Based on the syntany relationship, the map can also be used to improve other crops.

Human Genome Research Project

A research team jointly formed by Shanghai No.2 Medical University and Fudan University and headed by Prof. Chen Zhu, academician of Chinese Academy of Sciences and director of Shanghai Blood Research Institute of Rui Jin Hospital affiliated to Shanghai No.2 Medical University has carried out a research program on "Cloning of cancer related genes and heir structural and functional studies." With concerted efforts of academician Wang Zhenyi and Prof. Chen Zhu, the research team carries out therapeutic experiments on leukemia patients through indication of differentiation and apoptosis. The experiments have eventually achieved complete remission to retinoic acid through induction of apoptosis of acute promyelocytic leukemia cells by arsenic trioxide refined from traditional Chinese medicine. Major breakthroughs have been made in eludicating the molecular mechanisms underlying there therapeutic approaches. The research results attracted great attention from the medical circle and are regarded as "Chinese Revolution" in the history of cancer treatment.

Transgenetic Goat Research Project

A research team led by Mr. Zeng Yitao, academician of Chinese Academy of Engineering and researcher with Shanghai Children's Hospital undertakes research on" transgenetic goat." The team constructed a system of expression of foreign target genes in mammary gland and established a method of microinjection of foreign DNA into zygotes. The team has produced transgenetic goat with human clotting factor IX integrated in the milk by the route for generating transgenetic goats and by the hybridisation of Westerblot.

Setting-up of Research Centres

With support from the relevant central government departments, Shanghai has set up four research bases, namely, Shanghai Research Centre of Life Sciences in Shanghai Brain Research Institute of Chinese Academy of Sciences, Shanghai Research Centre of Applied Physics in Fudan University, Shanghai Research Centre of New Materials in Shanghai Ceramics Research Institute of Chinese Academy of Sciences,and Human Genome Research Centre affiliated to the Science and Technology Commission of Shanghai Municipality. By introducing the mechanism of "Cooperation, Transparency, Personnel Flow and Competition," these centres have broken free from the isolation of different research organisations and made synergy research possible, thus bringing the potential of qualified professionals into full play.

Personnel Training

The" Cross-Century Training Program for Talents of Science & Technology" is being implemented in Shanghai. The project covers three layers: " Young Science Stars Program" - the first layer, " Outstanding Research Group Leaders Program," - the second layer and " World Renowned Scientists Program," - the third layer. So far, the aforesaid three programs have offered training opportunities to 269, 80 and 5 persons respectively.

Strategic Targets of Science and Technology development

Four Strategies: - Market-oriented science, technology and economy integration; - Equal stress on technology introduction and innovation; - Working out priorities and seeking breakthroughs to catch up the world standard; - Taking advantage of reform to establish a new science and technology system for a harmonious coordination between science and technology innovation and development. Three Goals: - To increase the contribution of science and technology to economy; - To increase the output value of high-tech industries; - To increase the percentage of high-tech industries' output value in industrial GDP. Three Bases: - To build a high-tech industrialisation base; - To set up a scientific research and development base, technology introduction and innovation centre; - To form a reservoir of top-notch scientists and technicians.

Goal of Accelerating High-Tech Industrialisation

Shanghai aims to fully tap the potential of its science and technology resources, make breakthroughs in key industries, cultivate a number of high-tech pillar industries, form several large-scale and efficient high-tech enterprise groups. By doing so, Shanghai-manufactured goods will take a bigger share in both domestic and international markets and Shanghai will enjoy a faster economic growth. When the city economy grows in a healthy way, resources will be fully exploited and the city will be run in a more efficient manner. By the year of 2000, Shanghai will become one of the most important national high-tech industrial bases with high technology contributing over 20 per cent to the city's total industrial output value and more than 15 per cent to its export.

Goal of Basic Research

Shanghai aims to continue to lead the way in basic science research in the country. In some areas, the city aims to establish its leading position internationally to fuel the city's social and economic development. The major tasks Shanghai set for itself include drawing out a general development plan for basic research,establishing a number of key laboratories and research centres with Shanghai characteristics,building up a team of qualified workers and increasing investments in basic research.

Scientific and Technical development in Five Key Fields

- Information
- Biotechnology
- Advanced manufacturing technology
- Advanced materials
- Green technology

Development of Three High-Tech Industries

- Information industry
- Biotechnology and pharmaceutical industry
- Advanced materials industry

The "Magnolia Foundation" has been founded in recent years to support both domestic and overseas scientists doing researches in Shanghai, To boost the development of science and technology enterprises, the city has established high-tech parks offering preferential policies. Shanghai welcomes those who are willing to do research works, to initiate enterprises applying advanced technologies or to seek science and technology co-operations. Shanghai will establish more relationships with the world in science and technology fields and contribute more to prosperous future of the human being

New Product Program

In 1997, there were 294 state and city level projects labelled as the New Product Trial Program and the Pilot Plant Project Program (New Product Program for short). These projects, with a total investment of 2.01 billion yuan, yielded an added output value of 9.963 billion yuan. Among them, there were 55 state projects with a total investment of 427 million yuan, yielding an added value of 1.708 billion yuan. Besides, 178 city projects are expected to turn out an annual added value of 6.306 billion yuan. The 59 projects under the city's Pilot Plant Project Program in 1997 are expected to yield an added value of 849 million yuan and a profit of 211 million yuan every year. In 1997, the projects under the city's New Product Program all contained rich content of new and high technologies, rational size and profit.

The Spark Program

In 1997, by adhering to the strategy of" revitalising :he city by applying advances of science, technology and education," Shanghai made remarkable achievements in developing urban agriculture, accelerating the process of industrialisation of science and technology and cultivating key enterprises of high technology and high efficiency. In the same j ear, the city introduced 74 projects in the Spark Program with a total investment of nearly 900 million yuan, of which 480 million yuan came from bank loans. After their completion, these projects are expected to bring in 5.39 billion yuan in added value, 1 billion yuan in pre-tax profits and earn $130 million in foreign exchange.

The Torch Program

In 1997, the city launched 81 projects under the Torch Program with a total investment of 1.92 billion yuan, covering the fields of new materials, biotechnology, matronics, energy and environment protection. These projects are expected to yield an output value of 11.82 billion yuan and a pre-tax profit of 2.47 billion yuan. Of the projects, 45 will each generate over 100 million yuan in output value.

Program of Scientific Achievement Popularisation

In 1997, coupled with the adjustment and development of current industrial structure, the city's Program of Scientific Achievement Popularisation witnessed the implementation of 15 projects involving a total investment of 202 million yuan, including128 million yuan bank loans. The completion of these projects will result in a yearly sales of 1.22 billion yuan, a pre-tax profit of 349 million yuan and a combined earning of $101 million. These projects focus on technology upgrading in traditional fields, products quality improvement and product mix adjustment. In agriculture, the emphasis is put on the readjustment of farm product mix to facilitate the transition from self-sufficient agriculture to high-end agriculture and from traditional agriculture to modernised agriculture.

The Four-One Project for Popular Science

During the Ninth Five-Year Plan period, the "Four-One" Project for Popular Science has been launched to improve Shanghai residents' knowledge of science and technology. The" Four-One" refers to the establishment of one hundred popular science communities, one hundred popular science education bases, one hundred schools featuring popular science education and one hundred recommended popular science books, TV programs and films. In 1997, 21 popular science communities and 22 popular science education bases were established, 25 popular science schools were inaugurated and 20 popular science works were awarded. The implementation of the project has promoted the popularisation of scientific knowledge among Shanghai citizens, which in turn affects the economic production and people's work and life.

Shanghai Science and Technology Festival

In 1997, the city played host to a science festival with "sustainable development" as its theme. More than 170 work units in the city organised over 500 programs, including a science and technology fair, lectures, symposiums, a one-week science and technology film show, a contest on popular science knowledge and the promotion of technology in rural areas. More than 2.60 million people took part in various activities. Also included are the Fourth Shanghai Science and Technology Exhibition, the International Computer Network Application System Exhibition, the International Environmental Protection Exhibition and the Juvenile Science and Technology Exhibition. All attracted many visitors. The festival gave a big push to the city's science popularisation.

Technology market

Shanghai's technology market is served as a multi-layer channel for the collection and distribution of technology. A service network encompassing enterprises of diversified ownerships has been formed to meet the market demand for technology. In 1997, 18,863 items of technology changed hands, generating 2.876 billion in trade volume. Of the total, 13,634 items, or 72.38 per cent, were technologies introduced from foreign countries or from other parts of the country. They represented 60.34 per cent, or 1.73 billion yuan, of the total trade. Through the market, 43 cities, provinces and autonomous regions in the country purchased technologies they need. Thus, Shanghai has become a centre for technology transfer and application, particularly in the East China region. In 1997, 415 technical contracts, each worth at least 1 million yuan, were signed in town to generate 1.298 billion yuan in transaction volume. And, thanks to the fast development of the city's technology research, Shanghai is no longer a mere importer of foreign technology as it used to be.

Technology Exchange

Shanghai Technology Exchange reported a brisk business in 1997. There were 684 enterprises from all over the country used the exchange to seek technology transfer during the year. The exchange had provided assistance to tackle 720 technical problems. Cashing in on the information provided by the exchange, research institutes quickened the industrialisation of their scientific fruits. Banks, insurance companies and other financial institutions in town have established cooperation with the exchange, providing financial services for the development and application of new technologies.Shanghai Technology Exchange adopts a membership system and conducts cross-trade, cross-organisation and cross-region transactions through a modern computer system. With the exchange as an umbrella, Shanghai has also formed a number of specialised technology markets. With their advantages in information, personnel, technology and other resources, technology exchanges serve as a bridge between scientific research and economy.

Intangible Asset Assessment

After copying foreign experience at the initial stage, Shanghai had worked out its own system of asset assessment in 1997. The system is adapted to China and Shanghai situation. The system includes intangible asset definition, value mechanism, economic evaluation of intangible asset and parameter selection. With a complete set of standards in place, intangible asset assessment is now conducted in a rational and standard manner under a legal system. As a result, intangible asset assessment saw a fast growth in 1997. Since 1991, 903 items had been assessed for their value, that was some 201.502 billion yuan combined.