(Yicai Global) July 30 -- As a leader in China’s reform and opening-up, Shanghai’s Pudong New Area will support leading firms from all over the world to set up open innovation centers, helping the small- and mid-sized tech firms that rely on resources from these large corporations to develop.

Pudong launched the Group Open Innovation initiative yesterday, with the first 20 research and development institutions selected, including AI & IoT Lab under US software giant Microsoft and COMAC Innovation Valley under Commercial Aircraft Corporation of China.

The area hopes to increase that number to more than 100 over the next three years, boosting 5,000 small and medium businesses, Yicai Global learned at the launch ceremony.

Under the initiative, Pudong will give companies building open innovation centers a subsidy equivalent to half of their total investment in the centers, up to a maximum of CNY10 million (USD1.5 million). At the same time, hubs in operation will receive as much as CNY3 million a year and will be included in Pudong’s key talent security system.

Shanghai-based COMAC is the main body implementing China’s large passenger aircraft projects. Formed in 2019, COMAC Innovation Valley is working with 72 partners and rolled out new crossover products such as aircraft simulators and fifth-generation air-to-ground interconnection systems, Shen Bo, president of COMAC Shanghai Aircraft Design and Research Institute, told Yicai Global.

China issued a guideline to support high-level reform and opening-up of the Pudong New Area on July 15. Pudong unveiled the GOI initiative and five other plans on July 22 to implement the guideline and advance high-level opening-up in trade, investment, consumption, and tech innovation.

Editors: Dou Shicong, Peter Thomas