Author: Lu Chenjia, Senior Research Manager, Institute of Emerging Industries, Hualuo Think Tank; Jia Junyan, Researcher of the Emerging Industries Research Institute of Hualuet Think Tank**: Shanghai Hualuett (ID: Hualuett).
Proof-of-concept is an important part of innovation to help early-stage scientific and technological achievements cross the "valley of death" and transform them into real productivity. In recent years, the proof of concept has increasingly become a "killer feature" to support the transformation of scientific and technological achievements, and the best places have also become the guide, driving force and participant of the proof of concept. Beijing, Shanghai, Shenzhen, Hangzhou, Xi'an and other places have taken the lead in exploring and establishing a number of proof-of-concept centers, forming a series of practical experiences worthy of reference. Let's take a look! The full text is 6261 words, about 16 minutes to readAs a key link in the chain of transformation of scientific and technological achievements, "proof of concept" has gradually become a new favorite recently. Recently, the 2024 work reports of many provinces and cities have mentioned proof-of-concept and proof-of-concept centers, releasing important policy signals.
Sichuan Province: Build a proof-of-concept platform, set up a provincial-level pilot platform company, and lay out a number of pilot maturation and scientific and technological achievement transformation demonstration projects.
Jiangsu Province: Improve the technology transfer system, promote the reform experience of the Provincial Industrial Technology Research Institute, lay out and build a number of proof-of-concept centers, and vigorously promote the transformation of scientific and technological achievements.
Anhui Province: A number of cutting-edge technology proof-of-concept centers and pilot test bases have been newly built, and more than 100 provincial (key) laboratories have been reorganized and upgraded.
Guangdong Province: Promote the construction of a national technology innovation center in the Guangdong-Hong Kong-Macao Greater Bay Area, lay out a number of proof-of-concept centers and pilot test platforms, and create a scientific and technological innovation hub integrating "organized scientific research + organized achievement transformation".
Tianjin: Give full play to the role of various scientific and technological service entities such as the Technology Manager Development Promotion Association, the Proof-of-Concept Center, and the Pilot Platform Advisory Committee, and smooth the channel for the transformation of scientific and technological achievements in Tianjin.
Proof of concept to boost scientific and technological achievements across the "valley of death".Proof-of-concept, which originated in research universities in the United States in the early 21st century, is a transformation-oriented verification model that aims to verify whether certain concepts or theories have practical application potential. The technological innovation chain is generally divided into basic research, proof of concept, sample development, pilot maturation, large-scale mass production and other stages, and the gap between R&D results and market-oriented products is called the "valley of death".The proof of concept is the first link to cross this gap, and it is the "first mile" of the transformation of scientific and technological achievements(Figure 1). 
Figure 1: Schematic diagram of the main links in the technology innovation chainThe proof of concept is generally carried out by senior experts from technology, industry and capital to conduct "technology + business" dual verification of innovation projectsThat is, the technology, commercial feasibility and market application prospects of scientific research achievements are comprehensively evaluated and tested, and projects with high innovation ability and commercial potential are selected and sent to the subsequent stage, and projects with low commercial development feasibility are eliminated, so as to greatly improve the success rate of transformation of scientific and technological achievements and product landing. The Proof of Concept Center serves as the main carrier of the Proof of Concept activityIt is usually composed of site and supporting facilities, experts and service teams, project library, investment ** and other elements. Compared to other innovation vectors, the salient features of the Proof of Concept Center can be summarized as follows:The focus is on the transformation stage of achievements earlier, and the service objects are more diverse(Table 1). Table 1: Proof-of-Concept Centers vs. other innovation vectors
Developed countries and regions such as the United States, Singapore, and Europe have explored the proof of concept earlier and accumulated rich experience. As the main position of basic research and the source of original innovation, colleges and universities have abundant resources of innovation achievementsThe proof of concept was originally born at a research university in the United States. The University of California, San Diego opened the Von Liebig Entrepreneurism Center, the world's first university proof-of-concept center, in 2001, and the Massachusetts Institute of Technology (MIT) followed suit in 2002 with the Deshpande Center. Subsequently, universities in many places in the United States have successively set up proof-of-concept centers and proof-of-concepts**, such as the VentureLab jointly established by six universities in Georgia and the Biomedical Accelerator Fund at Harvard University. In addition to universities, ** and public institutions have also launched proof-of-concept related programs to promote the transformation of high-quality research results of universities and research institutions into market products and incubate innovative enterprises. For example, Singapore's proof-of-concept funding scheme, launched in 2008, provides up to S$250,000 for each selected project, with a total of 123 projects funded from 2008 to 2014. The European Research Council (ERC) of the European Commission launched the proof-of-concept funding scheme in 2011, providing up to €150,000 for each selected project, and has so far funded 187 projects from 105 institutions in 19 countries, with a total funding of €27 million. The U.S. Department of Commerce launched the Proof of Concept Support Program in 2017, providing a total of $17 million in grants to higher education institutions, startups, and innovation services organizations. These proof-of-concept programs share three common features:First, the scope of support is for high-tech and strategic emerging industries such as information and communication technology, high-end manufacturing, medical and health care, and environmental protection technologySecond, the use of funds mainly includes technical and commercial feasibility studies, development direction planning, intellectual property strategy, partner contact, end-user evaluation, innovation and entrepreneurship skills training, etcThird, the project selection criteria mainly include technical stability, innovation potential, market potential, manufacturability and scalability, and the leadership and management ability of the principal researcher. 
Five development models of domestic proof-of-concept centersIn 2017, China mentioned the proof of concept for the first time in the first policy document, and the "Notice on Printing and Distributing the Plan for the Construction of the National Technology Transfer System" issued by the first country proposed to strengthen the technology transfer function of innovation and entrepreneurship carriers and support technology transfer activities such as technology proof of concept and commercial development. Under the guidance of national policies, various localities have begun to explore the construction of proof-of-concept centers, and the following five main development models have been initially formed from the perspective of relying on the main body. The first is the source type of colleges and universities. Similar to developed countries in Europe and the United States, China's proof-of-concept centers also started in key colleges and universities. In 2018, Xi'an Jiaotong University established the country's first proof-of-concept center for universities relying on the National Technology Transfer Center on campus, and launched Micro Seeds with joint venture capital to provide small investments of 10-200,000 yuan and an investment cycle of about 1 year for early-stage science and technology projects. Since then, major universities and institutes have actively explored the operation mode of the proof-of-concept center, such as the proof-of-concept center of Beijing University of Aeronautics and Astronautics launched the "proof-of-concept + incubation + investment" model, the proof-of-concept center of the Chinese Academy of Sciences built a verification system of "idea verification, feasibility verification, and commercial verification", and the Qizhen Innovation Proof-of-Concept Center of Zhejiang University implemented the mechanism of "project screening, project cultivation, project investment, and joint development" to promote scientific and technological achievements from the laboratory to the market. The second is the R&D platform type. Relying on abundant resources of technological achievements, the new R&D institution embeds the proof-of-concept link into its innovation service chain. For example, the Proof-of-Concept Center of Tsinghua Industrial Technology Research Institute, which was launched in 2020, relies on the transformation resources of the Technology Innovation Center of the Industrial Technology Research Institute, hard technology incubator, innovation ** and other achievements, and has built a whole-process service system including project selection, verification counseling, business incubation, investment and financing, etc. On the one hand, two technical manager service teams, the expert team and the project team, were set up to effectively help the selected projects carry out proof-of-concept evaluation. On the other hand, we should make full use of policy support funds, reasonably set up a guarantee mechanism for the whole process of proof of concept and a benefit distribution mechanism, and adopt a phased support method to allocate project funds in stages. Another example is the Proof-of-Concept Center for Optoelectronic Functional Materials of Hangzhou Institute of Optics and Mechanics, which is one of the first 15 proof-of-concept centers awarded by Hangzhou at the end of 2022 (Figure 2). As of November 2023, the center has introduced a total of 38 scientific research teams, applied for more than 400 intellectual property rights, and has a technology transaction volume of nearly 70 million yuan. There are 36 incubated science and technology companies, with a total output value of nearly 500 million yuan and a total valuation of more than 10 billion yuan. 
Figure 2: Awarding ceremony of the first batch of proof-of-concept centers in Hangzhou, **Science and Technology Financial Times Official***The third is the vertical type of large enterprises. Leading technology companies focus on advantageous business areas, promote collaborative innovation of industry, university and research through proof of concept, and increase the momentum of industrial development. For example, as a leading medical device enterprise in China, Guangzhou Aoshida and Shandong Industrial Technology Research Institute jointly established the first computational medicine concept verification center in Shandong Province, and pioneered the four-in-one service model of "medical device + CRO + CDO + CMO", providing one-stop services including market research, concept generation, design and development, prototype production and testing for innovative products, and strongly supporting the innovation and transformation of medical devices. Another example is the Hangzhou Denuo High-end Medical Device Concept Verification Center with the help of the global innovation resources and technology integration capabilities of Denuo Medical, a leading life science and technology company, combines patient needs with clinical concepts, provides technical support for product design, verification, clinical trials and other links, opens up the important link of "combination of medical and engineering, science and industry" technology transformation, and solves the dilemma of transformation of high-end medical device achievements. Since its listing at the end of 2022, the center has built 3 project verification systems and charging standards, 10 projects in storage, and a total of 6 verification results, among which the "hydrogel myocardial repair technology" has been verified to be internationally leading and will enter the stage of large-scale clinical trials. Fourth, capital pilot. In recent years, social capital has also actively participated in and initiated the construction of proof-of-concept centers to empower start-ups to grow. For example, Hillhouse Capital, which ranks first among the top 10 top investment institutions in China, launched the "aseed+" seed plan in 2022, focusing on key areas such as high-end manufacturing, new energy, new materials, and biotechnology, and plans to invest in about 100 seed-stage enterprises within three years. Hillhouse has jointly set up a seed proof-of-concept platform with partners in Beijing, Shanghai, Suzhou, the Guangdong-Hong Kong-Macao Greater Bay Area and overseas, and has opened up all aspects of pre-investment, investment and post-investment to achieve integrated services such as business incubation, market verification, entrepreneurship acceleration, industry docking, and follow-up financing, providing full-cycle support for start-ups. Fifth, the park bearing type. A number of university science and technology parks and high-tech industrial parks have fully unleashed the potential of science and technology innovation space and innovative services, and strongly supported the development of proof of concept. For example, the Demonstration of Concept Center for Intelligent Manufacturing jointly built by Huanshang University Science and Technology Park and Shanghai University Industrial Training Center will be opened in November 2023, with a total area of more than 1,200 square meters. On the one hand, relying on the software and hardware facilities of the Engineering Training Center of Shanghai University (more than 2,000 sets of equipment in high-tech fields such as intelligent manufacturing, artificial intelligence, biomedicine, and advanced materials), basic research projects are promoted to carry out engineering technology concept proofs (Figure 3). On the other hand, the Huan Shang University Science and Technology Park, which is adjacent to the Shanghai University campus, is responsible for conducting market research on the project, designing and optimizing the business model, helping the project team to connect with investment and financing, finding suitable business partners, and subsequently evaluating the commercial performance of the project, analyzing market feedback, sales data, financial indicators, etc. 
Figure 3: The selected team of the Intelligent Manufacturing Proof-of-Concept Center of Huanshang University visited the Engineering Training Center of Shanghai University, **Shanghai Baoshan" official***
The development experience of domestic proof-of-concept pilot cities1.Policy guidance is the starting point for proof-of-concept developmentIn 2022, developed cities in China, such as Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou, intensively issued proof-of-concept related policies, mainly clarifying the construction subjects, identification conditions, and support methods of the proof-of-concept platform and ** (Table 2). On the main body of construction,All localities encourage and support institutions of higher learning, scientific research institutions, medical and health institutions, enterprises and social organizations and other multiple entities to carry out proof of concept, of which R&D institutions assume the function of technology assessment, and enterprises and social organizations assume the function of commercial development. In terms of recognition conditions,Shenzhen has put forward requirements for the team members, project library and site of the proof-of-concept center, while Hangzhou has added requirements for proof-of-concept funding and proof-of-concept effectiveness on this basis. In the way of support,Beijing adopts "ex-ante subsidy", Shanghai implements "non-fixed subsidy", and Shenzhen and Hangzhou adopt the mechanism of "construction first, then recognition". Table 2: Policies related to the Beijing-Shanghai-Guangzhou-Shenzhen-Hangzhou proof-of-concept
2.Professional support is the backbone of proof-of-concept developmentThe project selection and evaluation of the proof-of-concept require a high level of technical analysis and judgment, while the business evaluation and sample development require rich industrialization resources and experienceTherefore, the establishment and operation of proof-of-concept centers in various regions mainly rely on the technology research and development and industrial innovation resources of key universities and institutes, science and technology leading enterprises, and new research and development institutions. The first batch of proof-of-concept platforms in Beijing support 12 platforms, mainly focusing on intelligent equipment, medicine and health, a new generation of information technology, new materials four high-tech industrial fields, the construction unit includes Capital Medical University, China Institute of Metrology and other universities and institutes, as well as Hetang Exploration International Health, Changke Huaguang and other science and technology enterprises, the use of the construction unit's scientific research facilities, research and development capabilities, scientific and technological achievements and other resource advantages, by the construction unit leader as the platform leader. Multiple technical departments have cooperated to set up a full-time operation service team to provide specific services such as achievement evaluation, technical testing, and sample trial production. Chengdu's "West China International Smart Medical Valley Proof-of-Concept Center" has hired a group of experts and professors with rich experience in the transformation of achievements from West China Hospital of Sichuan University as "innovation mentors" to provide high-level and precise technical guidance for the project. A group of senior industry experts from well-known pharmaceutical companies such as AstraZeneca, Boston Scientific, and MicroPort Medical have been hired as "entrepreneurial mentors" to help the project link industrial resources. It can be said that relying on strong medical teaching and research resources and a full-chain network of professional institutions, the center has built a proof-of-concept service system covering achievement screening and evaluation, project cultivation acceleration, relay investment and financing, and customized consulting. 
Figure 4: The service system of the proof-of-concept center of the West China International Smart Medical Valley, **Wuhou released the "official***".3.The funding injection is an accelerator for proof-of-concept developmentFaced with the problem of lack of funds in the early stage of the transformation of scientific and technological achievements, Shenzhen, Xi'an and other cities have taken the lead in exploring the establishment of proof-of-concept**, organically combining state-owned capital and social capital, and effectively solving the funding needs of the proof-of-concept link of innovative projects. As the first proof-of-concept support program initiated by Shenzhen, the proof-of-concept platform of Shenzhen Xili Lake International Science and Education City initiated three supporting facilities in 2021, including proof-of-concept, pilot maturation, and achievement transformation. The series** was jointly initiated by Nanshan District Industrial Development Guidance**, Nanshan Venture Capital, and Lihe Venture Capital, providing refined and targeted support for the transformation of scientific and technological achievements, and successfully raised 200 million yuan in the first phase. As of July 2023, more than 180 science and technology innovation projects have been collected, reserved and followed up at home and abroad, of which 19 high-quality projects such as Immersive Vision, Weiling Medical, and Deep Carbon Technology have completed investment decisions. Different from the method of "state-owned capital guidance and social capital participation" in the proof-of-concept of Xili Lake in Shenzhen, the proof-of-concept of Xi'an Huan University established in April 2023 adopts the method of "social capital exploration and state-owned capital follow-investment", that is, the cost expenditure incurred before the project verification is borne by the powerful industrial party, and the capital investment after the verification is borne by the state-owned assets. The ** is the first proof of concept in Shaanxi Province, the main investor is Beilin Science and Technology Innovation Group, a state-owned enterprise in Beilin District, which has cooperated with Xi'an Jiaotong University, Northwestern Polytechnical University, Northwest University and other universities and scientific research institutions, with a total of more than 100 research and warehousing projects. The proof of concept, which originated in the United States, has taken root in China. Under the guidance and support of the policy, we expect that colleges and universities, R&D platforms, science and technology enterprises, investment institutions and other innovative entities across the country will show their strengths, open up the "first kilometer" of the transformation of scientific and technological achievements, and jointly irrigate the "innovation seedlings" that are expected to grow into "towering trees"!