Innovative Point System: Accurately Solving Financing Difficulties for Technology Enterprises

During the reform processOur reporter Sun Yu and Liu Yin"The company is engaged in intelligent laser welding products, and this year it received orders twice as large as its business scale. This was a good thing, but the company's working capital was insufficient, and it could not even afford to buy raw materials

During the reform process

Our reporter Sun Yu and Liu Yin

"The company is engaged in intelligent laser welding products, and this year it received orders twice as large as its business scale. This was a good thing, but the company's working capital was insufficient, and it could not even afford to buy raw materials."

Li Bin told the reporter of Science and Technology Daily that at the time of worry, China CITIC Bank Wuhan Branch granted 12 million yuan of credit to the company through enterprise innovation points, making their production capital "transferred".

The difficulties encountered by this company are not unique. Technology enterprises generally have the characteristics of high growth, high risk, and light assets. Due to the lack of collateral, financial capital is often unwilling to intervene. Lack of funding and insufficient funding have become the "number one problem" that troubles many small and medium-sized enterprises.

In 2020, the Torch High tech Industry Development Center of the Ministry of Science and Technology (hereinafter referred to as the Torch Center) launched a new policy tool for science and technology finance - the Enterprise Innovation Credit System. Through 18 core indicators such as enterprise research and development investment intensity, technology contract transaction volume, high-tech product revenue, and enterprise undertaken science and technology planning projects, the Torch Center provides precise portraits, drip irrigation, and cultivation for enterprises, solving financing difficulties for technology enterprises.

The emergence of the enterprise innovation credit system has enabled technology enterprises and financial capital to cross the gap and "chain" together. In 2022, a total of 71300 innovation point enterprises nationwide received bank credit of 117.86 billion yuan.

A precise portrait of a technology-based enterprise

In 1988, when the guiding plan for China's high-tech industrialization, the Torch Plan, was implemented, there were only 4 million yuan of government funds and 20 million yuan of bank loans. "Lv Xianzhi, Secretary of the Torch Center Party Committee, recalled that this spark ignited the innovation dreams of the first batch of high-tech zone enterprises.

Entering a new stage of development, how to make good use of policy tools and leverage more financial capital to serve enterprise technological innovation has become a key concern of the Torch Center.

Zhangjiagang, Jiangsu Province, used indicators to quantify enterprise innovation behavior and provided preferential policies, which gave them inspiration.

Quantification of indicators is a relatively objective way. We can use a multi-dimensional indicator system to depict enterprises, accurately measure their innovation capabilities, and resist risks with the growth and operational vitality brought by innovation, allowing the financial 'living water' to fully flow in the field of technological innovation, "said Lv Xianzhi.

Accurate portrait is crucial, where to start?

We have organized multiple forces to participate together and systematically, rigorously, and scientifically constructed an evaluation index system that can accurately reflect the innovation ability of enterprises. "Yu Lei, Director of the Policy and Coordination Department of the Torch Center, introduced, The evaluation of an enterprise's innovation ability not only uses indicators such as innovation input and output, but also confirms it through indicator data from different channels such as taxation and financial business. More importantly, the indicator system extends from innovation to the judgment of enterprise growth focused on by social capital, which caters to the 'appetite' of finance

In October 2020, based on extensive research, Torch Center organized industry experts to jointly develop three types of primary indicators: "technological innovation indicators," "growth and operation indicators," and "auxiliary indicators," covering 18 secondary indicators such as "R&D expense amount," "high-tech product income," and "number of invention patent applications related to main business." The enterprise innovation credit system was officially introduced, And the first batch of pilot work was launched in 13 national high-tech zones.

18 valuable indicators, outlining a dynamic and vivid picture of enterprise innovation capabilities. In May 2022, the Torch Center announced the "List of 500 Enterprises in the First Pilot National High tech Zone Innovation Points System for Enterprise Innovation Points".

Many companies are surprised to find themselves on the list. Jiangsu Fenghe Medical Equipment Co., Ltd. is on the list.

This is not a simple ranking list, but a 'diagnostic book' of an enterprise's innovation ability. It involves various indicators of innovation, including which are ranked high and which need to be addressed. It is clear at a glance. "Zhang Xinghua, the executive vice general manager of the company, said that he often logs in to the high-tech zone platform to browse the enterprise's point information. Through the enterprise portrait, he found that the company's technological innovation indicators and growth management indicators are outstanding, but the open innovation indicators are a weakness.

Internationalization is exactly the direction of our efforts, "Zhang Xinghua said. The company has established subsidiaries in Germany and Fenghe Academy in countries such as Mexico and Brazil. Through docking with foreign experts, the company will enhance its open innovation capabilities.

The gathering of numerous portraits has become a "transcript" of the innovation capabilities of Chinese technology enterprises. Yu Lei said, "By summarizing and analyzing the indicator data reported by various high-tech zones, the ranking of point scoring enterprises is identified, and the government provides classification guidance. Based on the full cycle guidance of the growth stage of enterprises, they are supported to develop into innovation reserve forces

A Credit Model for Evaluating Innovation Capability

With precise innovation portraits, the Bank of China Torch "Enterprise Innovation Credit Point Loan" credit model has recently granted credit to over 1000 technology enterprises, introducing financial "living water" for their development.

This is the first top-level designed credit model for technology enterprises in the industry, with enterprise science and innovation indicators accounting for about one-third of the weight. "Ge Chunyao, General Manager of the Corporate Finance Department of Bank of China, told reporters that the model is based on the enterprise innovation scoring system indicator system, integrating commercial bank credit analysis methods and investment bank value analysis perspectives, and quantitatively evaluating the credit risk and growth potential of technology enterprises by constructing an intelligent model, Accurate matching of credit services.

For financial institutions, this is a pioneering initiative.

Traditional financial institutions have three major pain points for the investment and financing of technology enterprises: inability to find high-quality projects, inability to understand the technological content of enterprises, and difficulty in controlling technology related risks. "Ge Chunyao said that in recent years, the financial community has continuously increased its support for the construction of innovation systems. The" Guiding Opinions on Supporting High Level Technology Self reliance and Self Strengthening in the Banking and Insurance Industry "issued by the China Banking and Insurance Regulatory Commission in 2021 clearly states that, We need to focus on promoting technology finance services for commercial banks and exploring new models of technology credit services. However, the problem of "not being able to find or understand" hinders financial capital from supporting technology innovation.

The introduction of the enterprise innovation credit system provides an effective path for financial institutions to address the aforementioned pain points. Ge Chunyao said, "Innovation point loan is actually a credit service that integrates technology evaluation. The technology department quantifies the innovation ability of enterprises in the form of innovation points, and financial institutions provide credit support based on the results of technology evaluation. The enterprise portrait issued by the Torch Center is an important basis for our credit extension

In 2022, the head office of Bank of China and Torch Center collaborated to establish the Bank of China Torch "Enterprise Innovation Credit", establishing a credit model that adapts to the characteristics of technology enterprises.

This model guides commercial banks to change their traditional risk control concepts in an intelligent manner and tilt credit resources towards start-ups, small and micro technology enterprises with scientific and technological innovation potential. "Ge Chunyao admitted that this will guide traditional commercial banks to learn to view technology enterprises from a" growth "perspective. At present, the model is being promoted and applied in relevant local branches. In 2023, Bank of China will allocate a special quota of 100 billion yuan for technology enterprises based on this model.

At the same time, financial institutions such as Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Postal Savings Bank, and others have promoted the establishment of special financial products called "Enterprise Innovation Credit Points", which provide unsecured credit loans to technology enterprises based on innovation credits.

A Digital Revolution in the Field of Technology and Finance

Now, a precise picture of innovation capabilities that do not require companies to fill out is being drawn on the enterprise innovation point management platforms established in various high-tech zones. High tech enterprises and financial institutions have successively "settled" on the platform, where enterprises tap the screen and push their portraits to the bank. After the bank approval is completed, enterprises can obtain loans online, saving time and effort.

The most difficult thing is to collect and organize data. "Liu Jingtao, the head of the Industry Promotion Department of the Hangzhou High tech Zone (Binjiang) Science and Technology Bureau, introduced that enterprise portrait data covers a wide range and is scattered across various business channels, making it difficult to obtain." However, the department team overcame the difficulties and coordinated various government departments to connect various government data platforms, ultimately obtaining relevant data, establishing the foundation of the enterprise innovation credit system

With each piece of data being summarized and uploaded, and each picture being accurately drawn, credit application orders are "running" on the platform, continuously relieving enterprises from difficulties and worries.

An unsecured credit loan of "online express" solved the "urgent need" of Vehicle-to-everything system solution provider Tianjin Boolean Technology Co., Ltd.

At the end of July last year, the company's cash flow was particularly tight due to excessive acceptance. With an innovative score of 88.4 points, we 'redeemed' a credit of 10 million yuan from Industrial Bank within a week, "said Yan Fangchao, the company's general manager.

Yan Fangchao learned about the "Enterprise Innovation Credit Points" through a one-on-one policy introduction by the staff of the Science and Technology Bureau of Tianjin Binhai High tech Zone.

The enterprise innovation credit system enables us to measure technology enterprises in a digital way, "Hao Siming, a staff member of the Science and Technology Bureau of Tianjin Binhai High tech Zone, told reporters, In the past, our service work faced a dilemma. On the one hand, we had to passively wait for companies to apply for qualification recognition; on the other hand, companies had difficulty understanding preferential policies in detail. Relying on the enterprise innovation credit system, we were able to proactively manage and cultivate enterprises in different levels, accurately promote preferential policies, and allow enterprises to enjoy them without applying

Hao Siming and other staff members of the Science and Technology Bureau of the High tech Zone realize that this is a digital reform to improve the level of government technology and financial services. With the support of digital power, the enterprise innovation credit system can do much more than just "providing a horse for technology-based small and medium-sized enterprises", but also providing services such as "supporting the horse and sending it off" - supporting high-quality development of enterprises, connecting resources, and accelerating the conversion efficiency of enterprise scientific and technological achievements.

With the support of the Torch Center, high-tech zones in various regions have also expanded the number of indicators based on local actual conditions, and calculated points based on the growth stage of enterprises and industry sectors, making the innovation profile of enterprises more accurate.

At present, the enterprise innovation point system has covered 101 national level high-tech zones and 32 provincial-level high-tech zones, expanding to 25 provinces across the country. It is expected that the number of innovation point enterprises will reach 150000 this year.

In the future, the enterprise innovation credit system will further improve the evaluation index system and methods to more accurately and early identify and support technology startups with growth potential. While enhancing the digital governance capabilities of the high-tech zone, guide industrial resources to empower integral enterprises.

A single spark can start a prairie fire. Next, the Torch Center will continue to promote the improvement and expansion of enterprise innovation points system, strengthen services and expand scenarios, maximize the effectiveness of policy tools, and more accurately empower enterprise innovation! "Said Lv Xianzhi.

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