The information office of Shandong provincial government convenes a press conference on July 31 to introduce the implementation of pre-tax deduction policy on research and development expenditure. [Photo/sdnews.com.cn]

The policy of pre-tax deduction on research and development expenditure issued by Shandong government has benefited many local enterprises, according to the government's press conference on July 31. The implementation of such policy in 2017 was introduced at the conference.

The pre-tax deduction policy is known as one of the most important local preferential policies to motivate the innovation of enterprises. As a result, it has brought great changes. 

For example, the number of enterprises enjoying such policy has more than quadrupled in past two years, increasing from 1,881 in 2015 to 7,950 in 2017, according to statistics from the Shandong government.

The total amount of pre-tax deduction on R & D expenditure has more than doubled in past two years, rising from 11.33 billion yuan ($1.66 billion) in 2015 to 25.64 billion yuan in 2017.

The policy has also greatly reduced the innovation cost of enterprises. For example, in 2017, the 25.64 billion yuan of total pre-tax deduction on R & D expenditure refers to a tax deduction of more than 6 billion yuan for enterprises. 

The number of the enterprises engaging in R & D has also increased under such policy, as the number of such enterprises has increased from 5,766 in 2015 to 8,920 in 2017, according to Li Chulin, deputy director of the Shandong provincial science and technology department.

Besides, the policy has strengthened enterprises' innovation capacity and facilitated the development of new high-tech enterprises. 

For example, in 2017, the province's enterprises exported 18,703 technology contracts, making 47.51 billion yuan of turnover, and an increase of 70.3 percent over 2015. 

Shandong's total number of new high-tech enterprises increased to 6,300 in 2017, an increase of 61.4 percent over 2015.