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National High-tech Industry Development Zones Qian Jinqiu Torch High-Tech Industry Development Center, Ministry of Science & Technology EU S&T Counselors.

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Presentation on theme: "National High-tech Industry Development Zones Qian Jinqiu Torch High-Tech Industry Development Center, Ministry of Science & Technology EU S&T Counselors."— Presentation transcript:

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

2 Outline  Background  Milestones  Current Status  Achievements  Future Strategy

3 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 Background: Torch Program

4 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 Background: Torch Program

5 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“Four-in-one“ the development goal for national high-tech zones 2007, Ningbo high-tech Park was approved as the 54th national high-tech zone Milestones

6 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 Current Status

7 Administration Scheme Ministry of Science & Technology: overall management & operational guidance Provincial S&T 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 Current Status

8 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 S&T 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

9 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 Before Zhongguancun Now

11 Achievements ( II ) Major bases of technology innovations R & D 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 R&D 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  R&D and technological personnel: 1.2 million (18.5% of all employees) Including 29,000 doctors, 216,000 masters and 280,000 overseas returned students.

12 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 RMB (10k) Per Capita Economic Indicators of National High-tech Zones

13 Cradle of High-tech Companies From “Made in China” to “Created in China”

14 XXX IC Bio-pharm New Materials Zhangjiang: International-leading technologies Zhongguancun: 1/3 IC designs in China; products from “Loongson”, “Vimicro“, etc. entered international market 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 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 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 Higher-end Industries Photovoltaic

15 Burgeoning Industries XXX Contract Research Creative Industry Animation Zhongguancun: nearly 1/3 of the country’s bio- medicine contract research resources Zhangjiang: the largest and most professional cultural technology creative industry player, producing 70% of total net games output value in the country Software Outsourcing Changsha: the largest domestic animation-cartoon production base (ranking 10 th in the world), contributing more than 50% of original making output Dalian: software engineering capacity covering design, development to testing and maintenance , products with independent IPR have entered international market

16 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

17 1 2 3 4 “4 in 1”  Powerful engines to push economic restructuring and growth mode transformation  Service platforms to facilitate tech-based companies to compete in international markets  Forelands to take the commending points of high-tech industries  Important carriers to promote technology progress and reinforcing indigenous innovation capabilities Strategic Positioning Future Strategy

18 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 Future Strategy

19 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. Future Strategy

20 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 Future Strategy

21  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 Industrial Base Industrial Cluster Innovation Cluster Physical congregation of industrial elements Specialized industries Close professionalized business co-operation based on value chains Industrial centralization 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 Main Features Industrial Cluster Development

22 Future Strategy Industrial Structure Innovation Industrial Growth Discipline ( Life Cycle ) Birth Formation GrowthMaturityDecline Industrial Value Discipline Capital Technology Market HRHR Infrastructure Knowledge Essential Factors Demand vs Supply R&D Desig n Production Brand Distribute Business Gov. Universities Intermediaries Industrial Structure Discipline Research Industrial structure innovation may take on various forms relating to the three basic disciplines of high- tech industry development

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

24 Future Strategy Government Level Park Level Business Level International Cooperation people Cooperation

25 Torch Center : Missions Strategic Study & Planning Administration Work Project Management Promotion & Services High-tech Industrialization & Environment Building

26 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. Torch Center: Strategic Study & Planning

27 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 Torch Center: Administration Work

28 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. Torch Center: Project Management

29 Related Statistical work Coordination and guidance work on the management of technology markets across the country Services on S&T achievements application and Industrialization consultation. Promotional work for high-tech industrialization Information services Personnel training International cooperation Torch Center: Promotion & Services

30 Thank you ! Website: E-mail:

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