Zhangjiagang has been actively advancing intellectual property (IP) pledge financing, making it a sustainable driving force for technological innovation.
An aerial view of Zhangjiagang. [Photo/WeChat account: zhangjiagangfabu365]
Tech-based enterprises, characterized by high technology, high growth potential, high risk, and light assets, often face financing difficulties. Unlocking the value of IP through pledge financing has become an effective means for small and medium-sized tech firms to broaden funding channels and enhance the practical use of their IP assets.
From January to February this year, Zhangjiagang completed 22 IP pledge financing cases, with a total value of 289 million yuan ($39.57 million), benefiting 22 enterprises.
Suzhou Drum Packing Co, located in Fenghuang town, is a technology-driven company specializing in the production of paper drum packaging containers. Its products are widely used in sectors such as hot melt adhesives, pharmaceuticals, and food. The company currently holds 20 patents. This year, it successfully secured a 26-million-yuan loan from Rural Commercial Bank of Zhangjiagang by pledging one core patent.
"With the funding obtained through patent pledging, we invested in the R&D of fully degradable packaging materials and launched two new products that filled a domestic market gap, directly boosting our sales by about 30 percent year-on-year,” said Huang Lei, administrative director of Suzhou Drum Packing Co.
Looking ahead, Zhangjiagang will continue strengthening its IP protection mechanisms, promoting integrated innovation, and enhancing service efficiency. The city will also encourage banks and insurance institutions to develop more IP-based financial products tailored to enterprises' needs, and further integrate IP with industrial, innovation, and financial chains, enabling industries to climb up the value chain.