Move to Make Sci-tech Finance More Inclusive

To make science and technology finance more inclusive, accurate and effective, China released the 2nd version guidelines of the "innovation point system" (National Pilot Edition) on October 29, marking a significant step toward improving the precision profiling and financing mechanisms for technology-driven enterprises.

The Ministry of Science and Technology (MOST), which released the document, refined the system's core indicators after over a year of pilot implementation to address issues such as data acquisition difficulties and insufficient adaptability across regions.

The 2.0 version is designed to help financial institutions more accurately identify enterprises with strong technological innovation capabilities, directing capital and policy resources toward high-potential tech firms.

The upgraded version has three key objectives: identifying, evaluating and supporting tech-driven enterprises.

It aims to identify both established and emerging tech companies by analyzing their core innovation characteristics.

It will then evaluate the strength and growth potential of these enterprises through a quantitative scoring system, which allows for more accurate classification and management.

Finally, it will support them by linking their innovation scores with various financial and policy tools — such as re-lending programs, credit guarantees, risk compensation mechanisms, and interest subsidies — to broaden access to funding through credit-based loans, investment, insurance and financing.

The guideline outlines a rigorous yet practical indicator framework built on four primary categories — innovation input, innovation output, innovation development, and innovation impact. The system has nine quantitative indicators and three bonus indicators, with a total base score of 100 points for the first three categories plus 30 bonus points for innovation impact.

Local governments are encouraged to apply the system to refine financial matchmaking, optimize policy coordination, and guide differentiated support for tech-oriented small and medium sized enterprises. The guideline also calls for integrating innovation credit results into local lending risk-compensation schemes, venture capital decisions, and the selection of enterprises for national R&D programs and talent initiatives.

To promote its implementation, MOST also took an action based on the principle of "open competition mechanism to select the best candidates." It has four goals: developing regional indicator systems, building digital evaluation platforms, expanding application scenarios, and innovating in government resource allocation.

Provincial science and technology departments are tasked with completing these objectives within two years.

By enhancing the precision, scientific rigor and usability of innovation evaluation, the new innovation predit system represents a powerful new policy tool — one that bridges technology and finance, fosters fair competition, and empowers China's technological enterprises to become key engines of high-quality growth.

Source: Science and Technology Daily