The Ministry of Science and Technology has expanded its Innovation Credit Score System nationwide, offering unsecured, low-interest loans to technology-based enterprises in a bid to foster innovation.

Initially piloted in 133 high-tech zones across 25 provinces from 2020 to the end of last year, the system provides loans to companies based on their innovation capabilities, which are assessed according to a series of indicators.

The ministry said nearly 20 banks provided over 200 billion yuan ($27.9 billion) in credit lines to eligible enterprises nationwide in the past two years.

"Traditional bank loans focus on collateral and guarantees," said Wang Ningning, deputy director of the innovation department at the Industrial and Commercial Bank of China's Technology Finance Center.

"Through the credit score system, financial institutions can assess the innovation capabilities of enterprises, guiding credit funds to invest early, especially in small and medium-sized companies with strong growth potential."

As of June, ICBC's branches had collaborated with 30 high-tech zones on the Innovation Credit Score System, approving over 100 billion yuan in credit through the program, Wang added.

Guangzhou High-Tech Zone in Guangdong province was among the first pilot areas. An official from the zone's science and technology innovation bureau said ICBC's Innovation Credit Loan had provided more than 6 billion yuan to over 170 eligible enterprises in the zone.

"The system not only directs social capital toward potential tech enterprises but also consolidates data from various government departments, promoting integrated management," the head of the bureau's credit system department said.

The evaluation process aggregates data from multiple departments — including science and technology, environmental protection and intellectual property bureaus — to create detailed profiles of enterprises.

In addition to facilitating loans, high-tech zones offer additional policy support to enterprises with high scores. Wang said that evaluating enterprises for ICBC Innovation Credit Loans takes just one to three days. Companies authorize the bank to access their data in the innovation score system, eliminating the need for additional reporting and significantly improving loan efficiency.

After loans are disbursed, banks monitor borrowers' operations. ICBC's Wuhan branch in Hubei province has developed an intelligent marketing system to track key enterprises that receive innovation loans.

"These enterprises have significant advantages in their fields," Wang said. "The Innovation Credit Loan has supported their early and growth stages, enabling rapid development and creating a virtuous cycle between industry, finance and technology."

With the system's nationwide expansion this month, ICBC plans to extend its credit loan offerings accordingly.

The Ministry of Science and Technology's Guidelines for the 'Innovation Credit Score System' Work (National Trial Version) outline the indicators used to evaluate enterprises' innovation scores. They include 18 items across three categories: technical innovation, growth and operation, and auxiliary indicators.

Technical innovation indicators measure a company's investment in research and development, including expenditure, growth rate and the number of invention patent applications. Growth and operation indicators focus on revenue from high-tech products and the educational background of personnel, while auxiliary indicators include the recruitment of recent graduates and the number of provincial-level scientific awards received.