Shanxi Innovation Valley•Taiyuan in Jiaocaoping district, Shanxi. [Photo/Shanxi news network]

In mid-March, Shanxi Innovation Valley, located in Taiyuan, capital of North China's Shanxi province, was bustling with activity.

On Dec 22 last year, Shanxi Innovation Valley, a hub for the transformation of scientific and technological achievements in Shanxi, was launched at the Taiyuan College of Energy and Materials, which is part of the Chinese Academy of Sciences. It has since implemented its first sub-venue: Shanxi Innovation Valley•Taiyuan. 

Currently, Shanxi Innovation Valley•Taiyuan has attracted 68 research teams and startups from five universities and institutes. It is equipped with a comprehensive service system for university achievement transformation, government affairs, finance, and technology.

The province recently introduced a series of policies and incentives to support Shanxi Innovation Valley's innovation-driven platform, providing assistance for incubating enterprises, intermediary services, technology finance, and investment error tolerance.

"In terms of the registered capital support of resident enterprises, for selected innovative entities entering the valley, we can provide a one-time innovation start-up fund of up to 1 million yuan ($138,902.40). After administrative approval and registration verification, companies do not need to handle the process themselves, as local government departments will handle the entire process," said Su Congming, deputy director of the achievement division of the Shanxi Department of Science and Technology.

Notably, Shanxi Innovation Valley has also introduced an equity investment error tolerance mechanism. While the introduced projects meet certain standards, it allows for a failure rate of up to 80 percent, with major stakeholders not accountable. This includes decision-making bodies, business supervisory departments, investment representatives, entrusted management institutions, and practitioners.

Shanxi Innovation Valley•Taiyuan will serve as a role model for other innovation projects under the umbrella of Shanxi Innovation Valley. 

"We hope that the distinctive support policies and friendly environment will attract more research teams and companies from both inside and outside Shanxi, aiming to promote the transformation of over 1,000 scientific and technological achievements and cultivate more than 1,000 science and technology-based enterprises," Su added.

In the future, Shanxi Innovation Valley will focus on key areas such as advanced manufacturing, energy and new energy, semiconductors, and new materials. It will carry out technology achievement transformation, pilot scale experiments, and enterprise incubation, which will create new quality productive forces.