Jiang Yilang, cofounder and CEO of Xi'an Jinhua Ecological Technology Co, checks soil temperatures in a greenhouse. [Photo/China Daily]

Government support

Yangling, famous nationally for its agricultural and forestry technologies, was established as the country's first national demonstration zone for agricultural technologies about 20 years ago. It is also China's only pilot free trade area for agriculture.

As a result, the city attracts a large number of researchers and academics, which highlights the role of Northwest Agriculture and Forestry University. By the start of this month, its researchers had registered more than 1,200 patents related to agriculture, making the university a leader in the field.

The new technologies have prompted dramatic changes in the agricultural sector.

For example, last year, five farmers in Yangling pooled their resources to raise 105 million yuan, and used new drip and sprinkler irrigation techniques in 80 greenhouses where they grew watermelons and tropical fruits.

The new techniques saved water and the greenhouses provided a tropical environment that greatly improved the taste of the produce, which rapidly became popular with consumers.

Another local startup, Yangling Agricultural Cloud Co, is the country's largest data platform in new fields such as smart farming, providing accurate information about the use of nutrients and marketing techniques.

However, the integration of research and industry has proved problematic, and local officials concede that more than 90 percent of startups in Yangling fold before they can make a profit.

Northwest Agriculture and Forestry University provides startups with subsidies ranging from 10,000 to 50,000 yuan, while the local government subsidizes eligible companies to the tune of 50,000 to 200,000 yuan each.

So far, Jinhua has received 10,000 yuan from the university and 50,000 yuan from government funds, and was also granted 200,000 yuan by the Shaanxi Department of Science and Technology to rent equipment at the university.

"All the subsidies and assistance indicate the support the government has given to startups," said Gao Hailong, one of Jinhua's founders.

"We can also apply to use other government-funded projects, such as a database for indigenous plants, which will help us to generate more revenue and improve our chances of survival."