1. What is a Technology-based Small and Medium-sized Enterprise (SME)?

A technology-based SME refers to a small or medium-sized enterprise that relies on a certain number of scientific and technical personnel engaged in scientific and technological research and development activities, obtains independent intellectual property rights, and transforms them into high-tech products or services, thus achieving sustainable development.

Technology-based SMEs play an important role in enhancing technological innovation capabilities, supporting economic sustainable development, and expanding social employment. These enterprises are market-oriented and implement a knowledge-intensive economic model based on “self-raised funds, voluntary cooperation, independent management, self-financing, self-development, and self-restraint.”

Technology-based SMEs are an honor for small and medium-sized enterprises. These enterprises have a certain number of technical personnel engaged in scientific research and development, have achieved certain results, and transformed them into high-tech products or services, thus achieving sustainable development.

2. Evaluation Method for Technology-based SMEs

To implement the "National Innovation-Driven Development Strategy Outline," promote mass entrepreneurship and innovation, and enhance precise support for technology-based SMEs, the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation have developed the "Evaluation Method for Technology-based SMEs" according to the requirements of the "Implementation Plan for Deepening Science and Technology System Reform."

The evaluation method, developed by the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation, defines technology-based SMEs as those that rely on a certain number of scientific and technical personnel engaged in scientific research and development activities, obtain independent intellectual property rights, and transform them into high-tech products or services, thus achieving sustainable development.

3. Conditions for Technology-based SMEs

Technology-based SMEs need to meet the following conditions: they should primarily engage in scientific research, development, production, and sales of high-tech products, commercialization of scientific achievements, technology development, technology services, technology consulting, and high-tech products, while obtaining independent intellectual property rights and transforming them into high-tech products or services.

Enterprises can be directly recognized as technology-based SMEs if they meet any of the following criteria:

1) High-tech Enterprise: The enterprise holds a valid high-tech enterprise qualification certificate.
2) Scientific and Technological Awards: The enterprise has received a national-level scientific and technological award in the past five years and is ranked among the top three awardees.
3) Research and Development Institutions: The enterprise owns a provincially or nationally recognized research and development institution.
4) Standards: The enterprise has led the formulation of international standards, national standards, or industry standards in the past five years.