Promote Hi-tech and achieve Industrialization: the Exploration and

Perspective of the Development of Chinese Hi-tech Industrial Development

ZonesYan Yuecheng

Plenary Session 1: Asian Cluster Model: New Perspective and Trends

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Promote Hi-tech and achieve Industrialization: the Exploration and

Perspective of the Development of Chinese Hi-tech Industrial Development

ZonesTorch Center, MOST, China

Nov, 2015

China's Hi-tech Zones have successfully developed a path with Chinese characteristics of hi-tech industry

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The Main Experience of the Development of Chinese Hi-tech Zones

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Outlook of Chinese Hi-tech Zones

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Contents

The National Hi-tech Zones are seen as the vital carrier and key platform to implement “develop Hi-tech and achieve industrialization”.The change in the 1980s of Chinese economic society: liberate the mind, reform and open up.

In order to embrace the new technology revolution’s challenge, Chinese government decided to rapidly develop hi-tech industry, and made the National Hi-tech Zones as the vital carrier and key platform to implement “develop Hi-tech and achieve industrialization”.

In May, 1988, the first national Hi-tech Zone, Beijing New Technology Industry Development Zone was approved by the State Council.

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There has been more than 20 years’ development for Chinese Hi-tech Zones

The First National High-tech Zone was established.

Established 52 National High-tech Zones.

146 National High-tech Zones are established.

The layout of national Hi-tech Zones

• Relying on the central cities with solid industry foundation and intense knowledge resources.

• Relying on coastal cities with better opening-up situation.

• Relying on cities with military enterprises and traditional industries.

• Actively building support platforms

1988 1989-1992 2015

So far, there are 146 Hi-tech Zones.

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China has explored a characteristic path to develop hi-tech industries to achieve industrialization and urbanization.

• Mainly depend on our own strength, elaborate the functions of the local city and develop in roll.

• Make good use of policies.• Create an innovation-driven path to develop.

Independent innovation

Entrepreneurship incubation

Market mechanism

Exit of land Ecological

economy Professional

parks

Management system

Industry alliance

High-level human resource

Technological finance

International cooperation

Overseas students’ entrepreneurship

Communication between parks

Radiation and guidance

IntensiveDevelopmen

t

OpeningDevelopmen

t

InnovationDevelopmen

t

Endogenous Developme

nt

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Hi-tech Zones now have become the core engine leading the development of Chinese regional economy.

• By the end of 2014, the total revenue of Chinese National Hi-tech Zones was 22.7 trillion RMB, the industrial output value was 17 trillion RMB, the net profit was 1.5 trillion RMB, the export amount was 435 trillion USD. There were 7.6 million companies and the amount of employees was 0.15 billion.

Revenue GDP

GDP reached 6.96 trillion RMB, accounting 10.9% of Chinese GDP.

Revenue reached 22.7 trillion RMB in 2014.

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Hi-tech Zone is the core carrier for China to build regional innovation system and enhance the ability of independent innovation.

Hi-tech Zone is• the backbone to support

National Innovation System

• the region with most intense innovation resources, with most active innovation activities, with most powerful innovation and with most abundant achievements.

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R&D spending was 399.57 billion RMB in 2014,accounting 39% of the national R&D funds。

R&D accounts 5.74% of GDP,2.7 times of the national average。

14.5% of the finacial funds(54.5 billion RMB) was used for S&T purpose in 2014。

58 thousand invention patents was licensed in 2014,accounting 24.9% of the total number of the country。

Hi-tech Zone is the vital incubator for new industry to develop.

Fields Representative enterprises & organizations

Z-ParkInternetNew mobile communication

Baidu, Lenovo, Sohu, Sina, Mi

Donghu Hi-tech Zone Photoelectron FiberHome Technologies Group

Hangzhou Hi-tech Zone E-commerce Alibaba

Shenzhen Hi-tech Zone

Information network service

CommunicationTencent, Huawei, ZTE

Wuxi Hi-tech Zone

Photovoltaic new energy

Internet of Things

China IOT Research InstituteWuxi IOT Industry Research Institute

Tianjin Hi-tech Zone New energy Lishen Battery, Youda Solar

Energy 9

There come a large amount of industry clusters with worldwide competitiveness in Hi-tech Zones.

Characteristic industry clusters in Hi-tech Zones

Z-Park

IT industry cluster

Donghu, Wuhan

Photoelectron industry cluster

ShenzhenCommunication industry cluster

Zhangjiang

Biological medicine industry cluster

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Hi-tech Zones are splendid symbols of China, leading the regional economic development.

• Hi-tech Zones have become the vital factor to lead the regional economic growth: the percentage of GDP of 33 Hi-tech Zones has exceeded 20%, 13 exceeded 30% and 4 exceeded 50%.

• The infrastructure and city functions of national Hi-tech Zones have been improved. The ecological environment has been built gradually. National Hi-tech Zones have become the key of green development around the country.

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Wuhan Guanggu Hangzhou Hi-tech Zone Ningbo Hi-tech Zone

Hi-tech Zones are key matching points of worldwide innovation network to expand the linkage radiation.

Zhangjiang

Shenzhen

Donghu

Hangzhou

Z-park

Hi-tech Zones actively match the Belt and Road Initiative, and enhance the ability of worldwide innovation resource radiation. By the end of 2014, there were 2703 people selected into Thousand Talents Program, 111 thousand overseas students, and 56 thousand foreign staff. Developed a large number of international professional service organizations. More and more national Hi-tech Zones already began to build overseas incubators and industry parks, exploring international energy cooperation, technology spillover and radiation of mature model.

12CapitalTal

entTech

nologyKnow

ledge

China's Hi-tech Zones have successfully developed a path with Chinese characteristics of hi-tech industry

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The Main Experience of the Development of Chinese Hi-tech Zones

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Outlook of Chinese Hi-tech Zones

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Contents

The main experience of China Hi-tech Zones’ development

• Deepen the reforming, opening-up and cooperation, innovation development

• Fully play the effects of local government and market

• Gather innovation factors, build innovation environment, and foster innovation bodies.

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First, insist on reforming development, promote the reforming of technology system and build service-oriented government.

Chinese Hi-tech Zones have practiced the comprehensive reforming of technology, economy, society and management, continue to enhance the supply of public service and optimize the quality of public service.

Through the system reform, Chinese Hi-tech Zones further liberate people and productive forces, let people show effects and value, shaping the situation which consist of entrepreneurial freedom and the booming development of private economy.

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Secondly, insist on innovation development, continuously gather innovation resources and factors, and build innovative ecology. • Through the internal cycle of talents, knowledge and capital, China Hi-tech Zones are forming continuous development of economy.

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External System(talent,

knowledge and capital input)

External System(talent,

knowledge and capital output)

Technology service environment

Polic

y & la

w

envir

onm

ent

Innovation culture

environment

Colleges and research institutes Enterprises

talents knowledge

capital

Thirdly, insist on opening up, from limited opening to gathering worldwide innovation resources.•China Hi-tech Zone is the outcome of globalization and also benefits from the process.1.The core of

new tech revolution is

the introduction

and re-development of

advanced technologies.

2.The manufacturing and R&D of

transnational companies is the

double transferring of

innovation

3.Worldwide linkage is the new stage of globalization: interregional

entrepreneurship, transnational technology

transferring, transnational incubation

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The globalization of China Hi-tech Zones

The fourth is to insist on endogenous development, explore the innovation model which core is “entrepreneurship-incubation-cluster”

Entrepreneurship Incubation Cluster• Entrepreneurship of R&D people

• Entrepreneurship of overseas top talents

• Entrepreneurship of college students

• Internal Entrepreneurship of large companies

• interregional entrepreneurship

• Massive entrepreneurship

• Makers’ Space

• Makers’ Space• College S&T Parks

• Angel Venture• VC

• Accelerator• Professional Parks• Gazelle enterprises• Hi-tech large companies

• VC• Industry & Tech research institution

• There are different needs of factors for different industries and enterprises in different development stage. A region, in order to keep fast industry growth and build industry clusters, it needs to obey the regulations of industry growth and value.

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Fifth, insist on characteristic development, create peaks in the flat world.

• Flat World and Innovation Peak are like the two sides of a coin. In globalization, the free and rapid movement of production factors leads to the “Flat World”. But, these factors also form professional clusters and create peaks in the Flat World.

− Z-park， China Silicon Valley, center of worldwide innovation；

− Donghu Hi-tech Zone， China Optics Valley；− Shenzhen Hi-tech Zone， Peak of communication tech；− Hangzhou Hi-tech Zone， E-business cluster；− Dalian Hi-tech Zone, Outsourcing cluster of China

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China's Hi-tech Zones have successfully developed a path with Chinese characteristics of hi-tech industry

1

The Main Experience of the Development of Chinese Hi-tech Zones

2

Outlook of Chinese Hi-tech Zones

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2

Contents

Implement innovation-driven development strategy comprehensively, build the platform of Chinese regional innovation and promote completed innovation

Platform of

innovation

platform of

technology service

Platform of

developing new

industry

Platform of

international

cooperation

Chinese Hi-tech Zones

Platform of

policy model

Platform of

technology

transfer

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Actively build innovation ecology and implement Public Entrepreneurship & Innovation

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talent

capital

Ttechnolog

y service Financial

service

Maker’s Space

Accelerator

Innovation Ecologymechanism & environment effectsInnovation circulation

Cultural

service

idea

Incubator

Research

result

Guidance

service

Other

servicesentrepreneu

r

investor Entrepreneurial enterprise

• Main Body：Public entrepreneurs, start-up enterprise, angel capital, crowdfunder and etc.

• Carrier：Maker’s Space-Incubator-Accelerator

• Service：Completed process from idea to enterprise

Implement Internet+, develop new economic growth points and lead the new normality of Chinese economy.

Hi-tech

Manufacturing

Service

• Tech blogs

• Big data

• Internet finance

• 3D Printing • New energy car

• Social media

• Wearable devices

• crowdsourcing

• Super service

• Remote education

• Internet car

• robot

• Location service

• Crowdfunding

• Cloud

• Open-source hardware

• Digital medical treatment

• Internet catering

• E-business

• Modern logistic

• New media

• IOT

• Digital convention

• digital household appliances

•Take Internet+ as the core method•Develop actively the new industry•New type of industry organization: platform economy, social economy, shared economy and crowdfunding platform

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Integrate with Belt & Road Initiative, gradually promote the ability of gathering global innovation resources.

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Enhance the link with worldwide innovation peaks and the radiation to emerging economic bodies, and build several innovation centers and hubs with global influence.Trans-regional entrepreneurship

Promote transnational technology transfer

• Gather various talents with rich experience and worldwide entrepreneur teams;

• Attract international top innovation resources.

• Promote trade and transferring of international advanced technologies

• Encourage enterprises join overseas technology merge and take part in the international standard making

Match international financial capital• Match overseas angel capital, VC, Mergers and acquisitions fund

• Cooperate with international investment banks

• Support enterprises to finance abroad

Thank you!

Chinese Hi-tech Zones looking forward to cooperating with the

world and hope to have more comprehensive effects on Asian

and worldwide economic cooperation!

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