National High-tech Industry Development Zones

1
EU ST Counselors Meeting
Dec. 8, 2008 Beijing
National High-tech Industry Development Zones
Qian Jinqiu Torch High-Tech Industry Development
Center, Ministry of Science Technology
2
Outline

• Background
• Milestones
• Current Status
• Achievements
• Future Strategy

3
Background Torch Program

• Birth August 1988
• Nature A national guideline program
• Aim To promote the
• commercialization of high-tech achievements, the
• industrialization of high-tech products and the
• internationalization of high-tech industries
• Executive Agency
• Torch High-Tech Industry Development Center

4
Background Torch Program

• Missions

High-Tech Industrialization Environment
Building

• Policy Support
• National High-tech Industry Development Zones
• High-Tech Innovation Service Center (Incubators)
• Torch Program Projects
• Torch Program Software Parks
• Torch Program Specialized Industrial Bases
• Innovation Fund for Technology-based SMEs
• Internationalization
• Training

5
Milestones

• 1985, Shenzhen Science and Technology Industrial
  park set up jointly by
• CAS and Shenzhen Municipal
  Government
• 1988, Beijing New Technology Industry
  Experimental Zone was approved
• by State Council with 18
  preferential policies.
• 1991, the State Council approved in March to set
  up National High-Tech
• Industry Development Zones and
  promulgated related preferential
• policies 26 zones approved to
  be established
• 1992, another 25 zones approved
• 1997, Yangling Agricultural High-tech Industry
  Demonstration Zone approved
• 2005, Premier Wen Jiabao put forward the
  Four-in-one positioning as
• the development goal for
  national high-tech zones
• 2007, Ningbo high-tech Park was approved as the
  54th national high-tech zone

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Current Status

• Geographic Layout
• 29 zones located in central cities with intensive
  intellect and good industrial base
• 13 zones located in coastal cities with good
  opening-up conditions
• 12 zones located in traditional industrial cities
  with intensive military enterprises

7
Current Status

• Administration Scheme
• Ministry of Science Technology overall
  management operational
• 
  guidance
• Provincial ST Commission high-tech enterprise
  identification
• Local government of host city immediate leader
  supervisor,
• 
  policy and financial support
• The Administrative Committee
• Administrative body authorized or delegated by
  local government
• Independent fiscal system and policy-makers
• Environment building (soft hard) and economic
  development
• Overall design and infrastructure construction
• One-stop services to tenant companies

8
Current Status

• Differences with other zones
• The Special Economic Zones
• large comprehensive reform trial zones enjoying
• legislative power and the special jurisdiction
• The Economic and Technical Development Zones
• opening windows with preferential policies to
  attract FDI to
• boost local economy and promote export
• investment type-based policy to
• learn from foreign advanced technology and
  management experience,
• The New High-tech Industry Development Zones
• Mainly relying on domestic ST strength and
  industrial foundation to optimize
• Local environment for tech-based business
  creation and development
• Developing high-tech industry with independent
  IPRs,
• upgrading traditional industries and optimize
  industrial structure
• realizing sustainable growth of national economy

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Achievements ( I )

• Main drivers for sustainable strong economic
  growth
• average annual growth rate of major economic
  indices 44 (1992-2007)
• total output value 1757.4 billion Yuan, 7.1
  of national GDP (2007)
• average industrial output per capita 710,000
  Yuan,
• 
  6.23 times of national average
• industrial value-added per square kilometer land
  700 million Yuan
• 33 zones contribute more than 20 of local
  industrial added-value

GDP Contribution from National High-tech Zones
(2001-2007)
10
Zhongguancun Now
Zhongguancun Before
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Achievements ( II )

• Major bases of technology innovations
• RD expenditure 134.88 bn Yuan RMB, 9 of GDP.
• 49,000 invention patents with 7.5 pieces held by
  per 1,000 people
• Converging areas of RD institutions innovation
  platforms
• 278 Universities
• 255 National Engineering Research Centers
• 360 Open Labs
• 251 Industry Technology Testing Platforms
• 102 Technology Transfer Centers
• talent pools of innovation personnel
• RD and technological personnel 1.2 million
  (18.5 of all employees)
• Including 29,000 doctors, 216,000 masters and
  280,000 overseas returned students.

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Achievements ( III )

• Important bases for hi-tech industry development
  
• 32,347 hi-tech tenant enterprises which generated
  
• 33 of the national hi-tech industrial output
• 605 listed companies in stock market
• Higher-end industries develop vigorously
• Burgeoning Industries continues to emerge

Per Capita Economic Indicators of National
High-tech Zones
RMB (10k)
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Cradle of High-tech Companies
From Made in China to Created in China
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Higher-end Industries
IC
Zhangjiang International-leading technologies
Zhongguancun 1/3 IC designs in China products
from Loongson ,
Vimicro, etc. entered international market
XXX
Bio-pharm
Zhangjiang 25 international patent applications
and 40 National
first-grade new medicine applications Changchun
40 domestic market share of Hepatitis vaccine
and No. 1 Interferon
suppository production capacity in China
New Materials
Zhengzhou 60 domestic market share of
super-hard materials Changsha cobat-acid lithium
battery material sales ranks 3rd in the world and
1st in the country National first-grade
invention award for high performance carbon
composites
Photovoltaic
Xiamen World leading production base of flat
color TV Wuhan 50, 40 and 50 domestic
market of optical fiber cable, optoelectronic
devices and laser products respectively
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Burgeoning Industries
Contract Research
Zhongguancun nearly 1/3 of the countrys bio-
medicine contract
research resources
XXX
Creative Industry
Zhangjiang the largest and most professional
cultural technology creative industry player,
producing 70 of total net games output value in
the country
Animation
Changsha the largest domestic animation-cartoon
production base (ranking 10th in the world),
contributing more than 50 of original making
output
Software Outsourcing
Dalian software engineering capacity covering
design, development to testing and
maintenance,products with independent IPR have
entered international market
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Achievements ( IV )

• Model areas of green development
• average energy consumption per 1,000 Yuan GDP
  50.6 kg stand coal, only 40 of national average.
• two thirds zones have been ratified as
  demonstration areas of ISO14001 Environment
  Management System.
• Experimental districts of public administration
  reform
• Small-Organization with Extensive Services
• scale of administrative body 1/4 of ordinary
  districts.
• administrative staff 1/8
• Service-oriented governments
• one-stop service system

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Future Strategy

• Important carriers to promote technology
  progress and reinforcing indigenous innovation
  capabilities

1

• Powerful engines to push economic
  restructuring and growth mode transformation

2
Strategic Positioning

• Forelands to take the commending points of
  high-tech industries

4 in 1
3

• Service platforms to facilitate tech-based
  companies to compete in international markets

4
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Future Strategy

• Strategic Goals
• Realizing 5 changes
• Endeavoring to make 4 advancements
• Constructing 3 types of parks
• Endogenous-Developing Approach
• Industry Cluster Development
• Industry Structure Innovation
• Building Harmonious Parks
• International Cooperation

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Future Strategy

• Realizing 5 changes
• from land/capital driven to tech/innovation
  driven
• from reliance on preferential policy or
  investment attraction to optimizing
  innovation/entrepreneurial environment and
  cultivating endogenic force
• from all-inclusive industrial development to
  developing characteristic leading industries
  based on local conditions
• from hard to soft environment building by
  optimizing configuration of technology resources
  and providing qualified services.
• from introduction from abroad and domestic
  market oriented to integration of bringing in
  and going out and developing international
  market.

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Future Strategy

• Endeavor to make 4 advancements
• Significant advancement of indigenous innovation
  ability
• Remarkable advancement of international
  competitiveness
• Advancement of sustainable development capacity
• Advancement of radiating and leading effect
• Constructing 3 types of parks
• World Class High-tech Parks
• Innovation Parks
• Specialized Parks

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Future Strategy

• Industrial Cluster Development

Innovation Cluster
Industrial Base
Industrial Cluster
Main Features

• Congregation of higher-end innovation elements
  including technology, talent, capital
  tech-based companies.
• Connection, interaction, competition and
  co-operation among innovation players
• Strong Innovation ability

• Physical congregation of industrial elements
• Specialized industries

• Close professionalized business co-operation
  based on value chains
• Industrial centralization

• To cultivate and develop innovation clusters
  based upon various existing industrial bases
  through the guidance of public policies
• To speed up the formation and growth of
  innovation clusters by establishing specialized
  parks, promoting industry alliances, cultivating
  innovative industrial sectors and strengthening
  public utility management

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Future Strategy

• Industrial Structure Innovation

Industrial Growth Discipline(Life Cycle)
Industrial structure innovation may take on
various forms relating to the three basic
disciplines of high-tech industry development
Essential Factors
Formation
Gov.
Intermediaries
Business
Industrial Structure Discipline
Demand vs Supply
Research
Universities
Industrial Value Discipline
Design
Production
Distribute
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Future Strategy

• Building Harmonious Parks

Economy Harmony
Requirements on developing Harmonious Park
Society Harmony
Culture Harmony
Environment Harmony
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Future Strategy

• International Cooperation

Government Level
people
Park Level
Cooperation
Business Level
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Torch Center Missions
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Torch Center Strategic Study Planning

• Making research on the development conditions and
  problems regarding the high-tech zones,
  technology markets, high-tech industrialization
  etc. and submitting suggestions and proposals to
  MOST for policy-making
• Drawing up proposals on policies and development
  plans of the Torch Program, the national
  high-tech parks, technology markets, technology
  business incubators, high-tech enterprises, etc.
• Drafting proposals on investment and financing
  policy for high-tech industrialization,
  organizing and and promoting technology-oriented
  venture capital investment.

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Torch Center Administration Work

• National High-tech industry Development Zones
  Torch Program Industrial Bases
• Technology Business Incubator
• Overseas Science Parks
• Technology Market, Technology Transactions
• Venture Capital Institutions
• High-tech Enterprises

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Torch Center Project Management

• Torch Program
• Innovation Fund for Small Technology-based Firms
  (including Tech-based SMEs VC Introductory Fund )
• National Key New Products.
• Productivity Promotion Centers, University
  Science Parks
• Software industrialization
• Compilation of China High-tech Products
  Catalogue China High-tech Commodities Export
  Catalogue, etc.

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Torch Center Promotion Services

• Related Statistical work
• Coordination and guidance work on the management
  of technology markets across the country
• Services on ST achievements application and
  Industrialization consultation.
• Promotional work for high-tech industrialization
• Information services
• Personnel training
• International cooperation

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Thank you ! Website www.ctp.gov.cn E-mail
qianjq_at_ctp.gov.cn