- Proof-of-concept and pilot testing are now eligible for government-backed vouchers
- The vouchers can also be used to buy technology services across the Yangtze River Delta
Zhejiang has expanded its innovation voucher program to cover technology commercialization, proof-of-concept and pilot testing, extending government support to the critical gap between laboratory research and mass production.
Under new guidelines jointly issued by the provincial science and finance authorities, companies and entrepreneurs can use free electronic vouchers to offset the cost of technology services.
The program previously focused mainly on R&D, testing, technology searches and intellectual property services.
Bridging the ‘valley of death’
The move targets the so-called “valley of death” in technology commercialization, where promising research often struggles to attract private capital because proof-of-concept and pilot-scale development are costly and risky.
Local governments will set voucher amounts. Provincial guidance has previously suggested ceilings of 200,000 yuan ($29,818) for companies and 100,000 yuan for entrepreneurs, while allowing higher support ratios for some services.
From Zhejiang to the Delta
The policy also supports cross-regional use of innovation vouchers, allowing companies to purchase technology services across Shanghai, Jiangsu, Zhejiang and Anhui.
Zhejiang is one of China’s early pioneers of the scheme, having experimented with innovation vouchers more than a decade ago to reduce costs for small businesses.
The province incorporated the system into its technology commercialization regulations in 2017.
Why it matters globally
The concept originated in Europe, where countries including the Netherlands and Belgium introduced similar schemes in the 2000s.
Zhejiang has since adapted it by linking vouchers to shared research equipment and, now, extending them into proof-of-concept and pilot-scale development.
For overseas observers, the move highlights how Zhejiang is using a relatively small public subsidy to tackle a problem faced by innovation systems worldwide: turning promising laboratory technologies into commercially viable products.
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