Developmental hub holds keys to success for rapidly-evolving, dynamic economy

Innovation and entrepreneurship have become the core of China's development strategy in recent years and Zhongguancun - the technology hub in Beijing's Haidian district - has led the nation in technology and innovation with its rich resources and preferential policies, according to leading officials.

With a theme of "Innovation, Intelligence and New Economy", the 2017 Zhongguancun Forum opened last week in Beijing.

Zhongguancun Science Park was launched in the late 1980s in Haidian, and has been regarded as China's "Silicon Valley".

It is one of China's leading incubators for high-tech industry.

Yin Hejun, vice-mayor of Beijing, told the forum that technological innovation and updating hardware and software are the main drivers to promoting the development of intelligent applications.

"Emerging technology inspires new industries and creates more demand for innovation, which in return supports new economic growth," Yin said.

Those views were echoed by Zhang Zhihong, director general of Torch High Technology Industry Development Center at the Ministry of Science and Technology.

Founded in 1989 and based in Beijing, the center engages in exploration and innovation to promote the advancement of high-tech industries.

Experts said China is now replacing its old drivers for change and progress with new methods.

The transformation and upgrading of traditional industries is bringing new life to the economy, they said.

Xu Guanhua, an academician of Chinese Academic of Sciences said that the ownership of cutting-edge innovation embodies core competitiveness in the new era.

Innovation-driven development is highly valued by the Chinese government.

It intends to drive the country's growth by integrating the internet, big data, artificial intelligence and the real economy, none of which can grow without the support of strong innovative abilities.

Franklin Urteage, former innovation advisor in Washington to the White House, pointed to the necessity of fostering innovation and acknowledged the rapid growth of China's technology in the forum.

He mentioned that the number of Chinese unicorn companies - companies valued at more than $1 billion - grew from zero to 36 percent of the world's total from 2013 to 2017, a remarkable speed.

"China is now becoming a leader in innovative culture," he said.

"Innovation is doing something better in a new way and that's what China is all about."

During the forum, Dan Shechtman, winner of the 2011 Nobel Prize in Chemistry, stressed the importance of innovation and entrepreneurship for any country. He exhorted the younger generation to take up the challenge.

"It's okay to fail. Just start again," he said.

He also suggested that supporting innovative startup research and development departments is an amazing way to encourage entrepreneurship.

Urteage said that government bodies play an important role in encouraging this kind of growth.

"More unicorns and more sharing economy companies, is a result of the leadership of government support," he said, adding that for Zhongguancun, its government was "very necessary."

Acknowledging the contribution of Zhongguancun to China's progress in innovation, Urteage said: "It's significant because Zhongguancun, in the last 10 years, has created more programs and more activity."

A Managing Partner of Peakview Capital, Erik Lassila, who has been working in Zhongguancun for a lengthy period, spoke highly of its contribution to the cultivation of innovative and entrepreneurial talent and the development of entrepreneurship in China.

Alan Dowdell, vice president for business development of California-based electric vehicle infrastructure company ChargePoint Inc, also shared his views on Zhongguancun.

"It has, up until now, been a really good incubator location because startups really need low-cost places to get some support, get talent, get advice and maybe get some funding," he said.

Dowdell also mentioned that Zhongguancun may face competition from some other emerging markets - as they too become interested in attracting expertise.

But he added that as it is located in Beijing, it should have the advantage and abilities to help companies grow.

At the opening ceremony, Beijing's vice-mayor Yin said that Zhongguancun, with about 500 colleges, national scientific research institutions and R&D centers for more than 300 multinational companies, is a cradle of China's technology and innovation.

"About 42.9 percent of intelligent entrepreneurial enterprises in China were born here," Yin said.

"Zhongguancun will connect to the global innovation network and integrate advanced international resources to build itself into a more influential global technology center."

To promote the AI industry and cultivate a competitive and innovation-oriented industrial cluster, the administrative committee of Zhongguancun has made a plan which specifies goals, instructions and missions for its AI companies and explains what support the administration will offer.

So far, more than 30,000 overseas returnee entrepreneurs have established over 8,000 enterprises in Zhongguancun, giving it the highest concentration of returnee-opened companies, according to officials.

gaomeng@chinadaily.com.cn

(China Daily 12/12/2017 page7)