China provides a suite of tax incentives to stimulate innovation and R&D, particularly targeting high-tech sectors such as biotechnology. Corresponding incentives are designed to reduce financial burden, encourage technological advancement and enhance global competitiveness. China’s reduced corporate income tax (CIT) rate for high-technology enterprises provides qualifying corporations with a reduced CIT rate of 15%, compared to the standard 25%. By reducing the tax burden on innovative enterprises, China promotes an environment conducive to technological advancement and industrial future-proofing. China’s tax incentives have significantly contributed to high-tech sector growth. In 2024, sales revenue in high-tech industries grew by 9.6% year-on-year, outpacing the overall industrial growth rate. Additionally, services related to the transformation of scientific and technological achievements into production saw a 27.1% increase, indicating a robust translation of R&D into marketable products.32 Through the implementation of similar tax incentives, governments can accelerate adoption of bio-innovation and stimulate industry growth, thereby strengthening national positioning and competitiveness across the global bioeconomy. Recommendation 6 Direct incentives for consumers to adopt bioproducts What if consumer demand directly drove the acceleration of bioproducts to market through “direct-to-consumer” incentives? With tax incentives targeted to the private sector providing one vital avenue to deliver a bioeconomy market pull, consumers represent another broad class of stakeholders that are essential to further driving demand signals. A strong demand signal from consumers is necessary to strengthen market pull. Ultimately both activities will work synergistically to strengthen signals for commercial adoption and demand. To expedite formation of a strong consumer demand signal, “direct-to-consumer” incentives will bolster demand signals and drive adoption.33 While direct-to-consumer incentives specifically targeting bioproducts do not yet exist, incentives for consumers who install renewable energy infrastructure and home improvements targeting energy efficiency are gaining traction globally. In Canada, the federal grant under its Greener Homes Initiative, aimed at helping homeowners make their homes more energy efficient, was a success and fully subscribed. Solar panels, heat pumps and insulation are examples of sustainable products that fall within incentive programmes in Germany, UK and India.35 Direct-to-consumer incentives could be applied to classes of bioproducts and services to improve affordability, ultimately strengthening consumer demand.Description Direct incentives for consumers to adopt bioproducts can strengthen demand signals and further catalyse a bioeconomy market pull. Example Aimed at helping Canadian homeowners make their homes more energy-efficient, the Greener Homes Grant offers up to CAD 5,000 (Canadian dollars) to cover the cost of eligible retrofits.34Recommendation 6 17 From Policy to Practice: Actionable Recommendations for a Commercial Bioeconomy

From Policy to Practice Actionable Recommendations for a Commercial Bioeconomy 2025