1. S.6 Geography presentation Hi-tech Industries Group member Coleman Terry Thomas Jack

2. What is the Hi-Tech Industry? Introduction A High technology (Hi-tech) industry is one that produces sophisticated products. There is a significant emphasis on research and development. Often the 'raw materials' are electrical components. Examples of Hi-tech industries include: Computers Telecommunications Aerospace and military equipment

3. What is the Hi-Tech Industry? It ususally refer to the industries developed with the last 25years and whose processing techniques often involve micro-electronics Two possible subdivisions of high-tech industries: 1. the ‘sunrise industries’ which have a high-technology base. 2. information technology industries involving computers, telecommunications and micro-electronics.

4. Characteristics of hi-t industry Rapidly Changing Product Cycles Hi-tech products usually have a short life cycle. (R&D, growth, mature, decline). E.g. more than ¼ people in china will change their mobile to a newer model in one year. That means the life cycle of the mobile phone is only about 2 and a half year.

5. Rapidly Changing Product Cycles Frequently rapid changes in product and process technology One result - mergers, acquisitions, deaths, and new startups – typical examples - Microsoft Office Suite, WWW strategy, Alliances – Boeing Airline models, acquisitions & divestitures over time. A tendency towards continuous “ reinvention ” of enterprises.

6. Characteristics of hi-t industry Hi-T products have relatively low weight and bulk. Low transport cost Hi-tech industry is a kind of footloose industry. They do not have to locate close to raw materials. Footloose industries locate in pleasant environments. They have to locate close to research centres.

7. Development of hi-tech industry in China Hi-tech industry becomes more and more important in china, as it is a high value- added industry and use relative less raw materials and cause less pollution problems.

8. development of hi-tech industry in china In 2000, the output value of the electronic and information products manufacturing sector reached 1,000 billion yuan (about 120.9 billion U.S. dollars). That was four times the figure five years ago. The 2004-year output value of Anhui Hi-tech industry was over 92.287 billion Yuan 144.7 percent higher than that of 2000-year and will easily exceeding 100 billion Yuan this year

9. Locations of hi-tech industry Case study: UK (along M4corridor) High-tech firms choose to locate in regions with good housing, service and attractive countryside. Heathrow airport Most of the firms in UK have their company headquarters in the USA, Japan, Germany and South Korea. Close to research institutions.

10. Locations of hi-tech industry Locational factors for high-tech firms.

11. Cambridge science park Established by Trinity College in 1970. Now home to 71 hi- tech companies and 5,000 personnel. Site plan

13. Location of Hi-tech industry Another example: M4 corridor

14. Location of Hi-tech industry Why M4 corridor attracts footloose industry to the M4 corridor? M4 motorway is a fast, reliable road route. Heathrow Airport. Cheaper land sites – compared to costs in London. Other motorway links from M4, e.g. M5,M40,M25 Many government research laboratories. E.g. Harwell and Aldermaston. Nearby universities e.g. Oxford, Bristol Attractive environment.

15. Location of Hi-tech industry Second type of high-tech enterprises. Concentrate on production (branch plants). Semi-skilled, low-cost labour Doing routine work. E.g. Thailand and Mexico. Why US, Japanese and Korean high-tech firms use their factories in the UK as a base for supplying the EU, but not other place in EU?

16. Characteristic of the labour Highly skilled, inventive and intelligent workforce E.g. researchers, scientist Therefore, hi-tech industry usually sets up near the universities, science park.

17. Characteristic of the labour Labour skills are usually more important to firms than labour costs. As most of the high-tech industries are depended on R&D and product innovation. For branch plants: low cost labour, semi- skilled, unskilled.