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The Shenzhen government has announced a number of incentives for companies that are regarded as "innovative" in an effort to boost the city's competitiveness in research and development.

In a news conference held at the Citizens' Center in Shenzhen's Futian District yesterday, officials from 20 government departments promised streamlined administrative procedures and tax benefits to "innovative" companies.

For the first time in Shenzhen's history, the finance bureau said it would include innovative products and services on the government procurement list.

However, the criteria for "innovative" companies have not been decided yet.

The municipal science and technology bureau, which is drafting the criteria, said the criteria would be based on the amount of creativity in the company's products.

One can register an "innovative" company with only 30,000 yuan (US$3,750) and establish such a company in a residential area.

Shenzhen will invest a total of 100 million yuan on research and development from 2006 to 2010, according to the five-year plan passed at the last meeting of the legislative body.

(Shenzhen Daily May 23, 2006)