Sep 3, 2026 · 8 min · 5 segments
The Law on High Technology 2025 (effective from July 1, 2026) identifies the development of high technology and strategic technology as a strategic breakthrough for rapid and sustainable…
The state is changing how it manages high technology activities.
whereas the state previously performed mainly an administrative management function and established the legal framework.
The draft shows that the state is now moving toward actively accompanying enterprises and sharing risk with them in high-technology research and development activities.
This approach stems from the reality that high technology activities require large expenditures, carry a high degree of risk, and involve a long capital recovery cycle, without support and assurance from the state.
Enterprises would have little incentive to invest in high-risk fields such as technology.
To address this, the draft establishes a relatively comprehensive system of support policies, including a mechanism for commissioning and funding through science, technology, and innovation programs, support from science and technology development funds, tax incentives, import duty exemptions for machinery.
equipment, spare parts, specialized supplies, documents, and specialized scientific publications used directly for high technology research and development, human resource support, and support for intellectual property and commercialization.
These policies do not focus solely on the initial research stage, but cover the entire process, from research and development, to the protection of intellectual property rights, valuation, exploitation, transfer, and commercialization, through to the establishment of high-technology research and development centers, establishing enterprise criteria that prioritize genuine capability.
Policies to promote research are only effective when there are entities with the capacity to turn research results into actual products.
On this basis, the draft places considerable emphasis on establishing criteria for recognizing high-tech enterprises with a clear emphasis on substantive capability rather than mere formality.
The draft classifies high-tech enterprises into several tiers, with requirements that rise progressively according to priority level.
Enterprises seeking recognition in a higher tier and access to greater incentives must meet stricter criteria regarding the proportion of revenue derived from high-tech products, the level of investment in research and development, the quality of human resources, and their capacity to master technology and achieve localization.
The inclusion of localization ratio and technology mastery capacity as criteria for the higher tiers shows that the state wants to draw a clear distinction between enterprises that genuinely create technological value domestically and those that merely carry out assembly or processing on the basis of imported technology.
This also requires enterprises to demonstrate their capability through concrete records and data on revenue.
research expenditure, and human resources, rather than relying solely on their registered business lines.
The state is changing how it manages high technology activities.
whereas the state previously performed mainly an administrative management function and established the legal framework.
The draft shows that the state is now moving toward actively accompanying enterprises and sharing risk with them in high-technology research and development activities.
This approach stems from the reality that high technology activities require large expenditures, carry a high degree of risk, and involve a long capital recovery cycle, without support and assurance from the state.
Enterprises would have little incentive to invest in high-risk fields such as technology.
To address this, the draft establishes a relatively comprehensive system of support policies, including a mechanism for commissioning and funding through science, technology, and innovation programs, support from science and technology development funds, tax incentives, import duty exemptions for machinery.
equipment, spare parts, specialized supplies, documents, and specialized scientific publications used directly for high technology research and development, human resource support, and support for intellectual property and commercialization.
These policies do not focus solely on the initial research stage, but cover the entire process, from research and development, to the protection of intellectual property rights, valuation, exploitation, transfer, and commercialization, through to the establishment of high-technology research and development centers, establishing enterprise criteria that prioritize genuine capability.
Policies to promote research are only effective when there are entities with the capacity to turn research results into actual products.
On this basis, the draft places considerable emphasis on establishing criteria for recognizing high-tech enterprises with a clear emphasis on substantive capability rather than mere formality.
The draft classifies high-tech enterprises into several tiers, with requirements that rise progressively according to priority level.
Enterprises seeking recognition in a higher tier and access to greater incentives must meet stricter criteria regarding the proportion of revenue derived from high-tech products, the level of investment in research and development, the quality of human resources, and their capacity to master technology and achieve localization.
The inclusion of localization ratio and technology mastery capacity as criteria for the higher tiers shows that the state wants to draw a clear distinction between enterprises that genuinely create technological value domestically and those that merely carry out assembly or processing on the basis of imported technology.
This also requires enterprises to demonstrate their capability through concrete records and data on revenue.
research expenditure, and human resources, rather than relying solely on their registered business lines.
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