Master programme in Economic Growth,
Innovation and Spatial Dynamics
Route to success?
Case study of Zhongguancun High-tech zone
Yixin Tan
tyx_abu_ill@hotmail.com
Abstract: China’s present economic performance is frequently attributed to market
reforms that have opened up the economy to foreign trade and investments. Some
people say, "How Far is China from the Information Highway? - Just 150 Meters
Ahead.” In this article the cluster approach will be discussed if it suits for analyzing
the development of Zhongguancun current success. In the article, it will be discussed
and analyzed the case of Zhongguancun based on the characteristics of the
theoretical system of cluster in detail. And it is still to acknowledge the fundamental
result of the developing Zhongguancun and the reason of the lag between
Zhongguancun and Silicon Valley.
Key words: Cluster, Zhongguancun, innovation, economic growth, Silicon Valley
EKHR23
Master thesis (30 credits ECTS)
August 2010
Supervisor: Ola Jonsson
Examinar: Jonas Ljungberg
Website www.ehl.lu.se
Content
1.
INTRODUCTION ............................................................................................................... 4
1.1
1.1.1
Research background.............................................................................................. 4
1.1.2
Research purpose.................................................................................................... 6
1.2
2.
Research Formulation ............................................................................................. 7
1.2.2
Sub-questions ......................................................................................................... 7
MAIN METHOD STRUCTURE ............................................................................................ 9
METHOD CHOICE .................................................................................................................. 9
2.1.1
Case Study as Research Strategy ............................................................................ 9
2.1.2
Secondary Analysis as Data collection from previous studies and re-analysis ..... 10
2.1.3
Administrative records and Documents as Data collection from institutional data .... 11
2.2
4.
RESEARCH QUESTIONS AND FORMULATION ................................................................................ 7
1.2.1
2.1
3.
RESEARCH BACKGROUND AND PURPOSE ..................................................................................... 4
CRITICAL ARGUMENT ABOUT METHODOLOGY AND LIMITATION...................................................... 12
THEORETICAL FRAMEWORK .......................................................................................... 13
3.1
THEORETICAL STUDIES AROUND REGIONAL DEVELOPMENT ........................................................... 13
3.2
THEORETICAL CONCEPT ........................................................................................................ 14
3.3
CHARACTERISTICS ............................................................................................................... 14
3.3.1
Geographical agglomeration ................................................................................ 14
3.3.2
Specialization ........................................................................................................ 15
3.3.3
Quantity ................................................................................................................ 15
3.3.4
Innovation ............................................................................................................. 15
3.3.5
Networking ........................................................................................................... 15
3.4
DISTINCTION OUT FROM OTHER CONCEPTS ............................................................................... 16
3.5
CLASSIFICATION OF CLUSTER .................................................................................................. 17
3.6
THE LIFE CYCLE OF CLUSTER ................................................................................................... 18
3.7
CRITICAL ARGUMENT ABOUT PORTER´S THEORY ........................................................................ 20
CASE STUDY WITH DETAIL ANALYSIS ABOUT ZHONGGUANCUN.................................... 22
4.1
THE HISTORICAL DEVELOPMENT OF THE ZHONGGUANCUN HIGH-TECH ZONE AND GENERAL INTRODUCTION . 24
4.1.1
The general development of Zhongguancun High-tech zone ............................... 24
4.1.2
The development pattern of Zhongguancun High-tech zone................................ 25
4.2
GEOGRAPHICAL AGGLOMERATION .......................................................................................... 27
4.3
SPECIALIZATION .................................................................................................................. 29
4.3.1
Division of Industries ............................................................................................. 29
4.3.2
Structure of industries .......................................................................................... 31
4.3.3
Labor of division.................................................................................................... 34
4.4
TALENTS AND LABOR RESOURCES ............................................................................................ 36
4.5
R&D AND INNOVATION ........................................................................................................ 40
4.6
NETWORKING..................................................................................................................... 50
2
4.7
5.
COMPARISON WITH SILICON VALLEY........................................................................................ 59
CONCLUSION ................................................................................................................. 65
REFERENCES ........................................................................................................................... 68
3
1. Introduction
1.1 Research background and purpose
1.1.1
Research background
What is the route to success? This is the interesting issue for developing a region.
Success can be considered as to maintain the competitive advantages which help
the region continuously and sustainably develop in the long term.
Since the last 1970s, the topic of how to stimulate the economic growth and
improve the competitive advantages of the regions became one of the most
popular topics in the world. Many scholars started to pay attention on discussion
about the regional development in academic perspective. In the academic
perspective of economic geography and regional science, these topics can be
considered as the new heterodoxy to modern economics. Recently, in the process
of economic growth, the effect of the industrial cluster can’t be ignorable for the
specific regions.
In western academic studies, new industrial cluster has become a really important
definition about regional research. Many articles make the case studies of the
industrial clusters located in Silicon Valley in USA, Emilia-Romagna in Italy,
Baden -Wuerttemberg in Germany, etc. The most significant signs to measure
whether the region appears the phenomenon of industrial cluster intensive with
SMEs inside the region, the stable networking among enterprises, and embedded
in local culture, etc.
Within Stanford Research Park distributed as the first high-tech park, the new
form organizing economy which characterized as the high-tech industrial cluster
has developed rapidly and successfully in the world.
Many high-tech regions come to the fore around the world, as Route 128
Industrial Area in the United State, Tsukuba Science City in Japan, Cambridge
Science Park in the United Kingdom, Sophia-Antipolis Science Park in France
and New-Novosibirsk Science Park. It broke up the limitation with natural and
geographical factors, combining more with competition, agglomeration and
cooperation. The enterprises in the cluster hold the advantages with
scale-economy and scope-economy through interact-communication and
cooperation, leading a strong effect on spillover. It drives the development of
regional economy, even on the national and global level of economy which
gradually becomes one of the new economic growth factors.
4
It can be said that industrial clusters has played a remarkable role to enhance the
regional economic status, even promote the economic development of a country.
Many countries considered developing the industrial clusters as an important
strategy to stimulate local economic growth, industrialization and urbanization,
particularly important on the development of SMEs.
Then back to view the situation of Zhongguancun zone in Beijing. Since the
reform and opening policy as introduced in the late 1980s, China has gained
eye-catching and marvelous progress and the living standards of the people has
been greatly enhanced to a higher level as a result. The development of China got
more and more attention by the whole world. Beijing is a city with a history of 800
years as the capital of the nation. It has been a city with rich historical and cultural
background where it can be found numerous historic sites and cultural scenic
spots that congregate the splendid legacy of culture and arts of the nation.
In the meantime, Beijing is developing by a high speed that it can be traced the
emergence and rapid growth of the new and high tech industries represented by
electronic information, bio industry and pharmaceuticals, environmental
protection, the photo-electronics and new materials and the birth of a batch of new
and high tech achievements with independent intellectual property rights. It helps
Beijing have the formation of the first High-tech Zone. Beijing does not only
provide a wonderful environment for a High-tech Zone, but also a lot of good
support from government.
High-tech industrial cluster appears with the start of establishing the first
high-tech park Shenzhen Technical Industrial Park in July 1985 in China. Until
the end of 2009, China has established 561 national high-tech industrial parks,
hundreds of provincial-level high-tech industrial parks. Zhongguancun
High-Tech Zone as the main representative of the high-tech industrial parks is
not only the largest high-tech industrial cluster area in China, but also places in
the same famous status with Hsinchu high-tech Park in Taiwan in the world.
Zhongguancun originated in the early 1980s in the late 20th century, firstly
called “Zhongguancun Electronics Street.” Within the developing in the 20 years,
today the "Zhongguancun Electronics Street" has become more than one district
within the national-level high-tech industrial park, including 10 sub-parks such
as Haidian Park, Fengtai Park, Changping Park, Electronic City Science and
Technology Park, Yizhuang Science Park, Yizhuang Park and Jianxiang Park.
As the first national high-tech industrial cluster zone in China, undoubtedly,
Zhongguancun High-Tech Zone is one of the most intensive areas covered with
the technology, intelligence, talent and resources. The high-tech enterprises in
1
http://www.zgc.gov.cn/sfqgk/gyjj/55169.htm
5
the Zone rapidly develop and show the strong competitive advantages with
independent innovation on a lot of products with international competitiveness.
Zhongguancun mainly located in the northwest of Beijing. Home to Beijing
University, Tsinghua University, and full with world-class institutions of higher
education, within the most talent-intensive region in China, the Chinese Academy
of Science (CAS), PRC government ministries, and the Beijing municipal
government are also located there, along with more than 200 research institutes.
Each year the area dispatches thousands graduates and hundreds post-graduates
into the Chinese economy. Many scientists and engineers hold associate professor
positions or higher in Zhongguancun zone.
"How Far is China from the Information Highway? - Just 150 Meters Ahead.”
This advertisement indicates the location of Yinghaiwei Informational
Communication Corp., one of China's first Internet companies (interestingly, its
name is derived from the English phrase "information highway"). It raised an
interesting question: How far is Zhongguancun from being a first-rate High-tech
Zone?
1.1.2
Research purpose
In the recent years, the Zhongguancun High-Tech Zone holds the significant
economic share in China even in the world, which plays the important role on
regional and national economic growth. However, we should also see the actual
issues with the development of the Zhongguancun High-Tech Zone, such as the
issues on the corporate level, governmental level and technical and financial
level. Faced the challenges of economic globalization, it is really important to
make the Zhongguancun High-Tech Zone remain competitive advantages in the
international competition, ensure sustainable development of the zone, and avoid
"negative externalities" of the cluster. And it becomes a problem be solved that
how agglomeration efficiency of industry and innovation mechanism can
stimulate regional and national economic development.
Zhongguancun was called "Chinese Silicon Valley", but how far does it need to
catch Silicon Valley? As Silicon Valley is the first famous High-tech Zone
established based on support of universities and innovation cluster, many
High-tech Zones copied its model to develop themselves. So to clearly study the
difference between Silicon Valley and Zhongguancun is very important,
especially the reason forms this gap.
Based on this, by deeply study on the theory of industrial clusters, the paper makes
the analysis of the industrial cluster in Zhongguancun High-Tech Zone, combined
with the comparative analysis through Silicon Valley in the United State, which
6
aims to find out the developing pattern of the Zhongguancun High-tech Zone.
Through the study of the real development of Zhongguancun High-Tech Zone, it
combined the advantages and problems of Zhongguancun High-Tech Zone linked
as practicing the theory to explore the best strategy to develop the park in order to
achieve a fast, healthy and sustainable development. The research results will also
have the important theoretical and practical significance in improving the
international competitive advantages of the area, improving the development of
regional sustainable capability, and promoting the competitiveness of regional
economy, even the national economy.
Chapter 1 has been discussed the simple aim and the study background of the
author do the research of Zhongguancun, and the research question and
formulation of this thesis will be illustrated as well. Chapter 2 is going to
introduce the main methods of collecting data. Chapter 3 introduces the
theoretical framework of cluster, which is the basic theory system to establish
and support the thesis. Chapter 4 discusses and analyzes the case of
Zhongguancun based on the characteristics of the theoretical system of cluster as
Chapter four mentioned. Chapter 5 concludes the whole article with the
fundamental result of the developing Zhongguancun and concludes the reason of
the lag between Zhongguancun and Silicon Valley.
1.2 Research Questions and Formulation
1.2.1
Research Formulation
Can the Zhongguancun High-tech zone get the success on implementing the
cluster approach?
1.2.2
Sub-questions

What are the approaches talking about the economic development of a zone?
The approaches concerning Industrial districts, Industrial cluster, Regional
Innovation System, Agglomeration, external economies, scale economies and
flexible specialization, etc.

What are the features in the approach of Industrial cluster? Analyzing the
performance of features in the approach of industrial cluster. How can the
theory of industrial cluster utilize in development of Zhongguancun
High-tech Zone?

What are the most important factors leading the success of industrial clusters
by comparing with different successful regions as Silicon Valley?
7

Are there any similar or different features in the comparison of developing
industrial cluster between Zhongguancun and Silicon Valley? What are the
similarity and overlap between Zhongguancun and Silicon Valley? To make
the comparison of these two zones can acknowledge the development of
Zhongguancun High-tech Zone by the experiences of Silicon Valley model.
8
2. Main Method Structure
The methods chosen to use are case study, secondary analysis, research review
and administrative records and documents.
2.1 Method Choice
2.1.1 Case Study as Research Strategy
Case study investigates a phenomenon within its real life context as the research
strategy. Case study is a descriptive record of real life condition. Case study is
a method to explorer the deep causal background of the simple phenomenon. It
is most suitable to study the questions of “how” and “why” types. Case study
can study single case and multiple cases. And case study method can study the
example to describe the condition of that sample case or to explain the reason
the phenomenon arise or try to explorer the deep insight behind the phenomenon.
Simply, case study can analyze a small-size sample which can generalize the
same type of social phenomenon or the policies, etc. but case study can study
some phenomenon and analyze the reason influence the phenomenon. It is
common to see some case studies are used to compare a similar topic or
phenomenon in different areas or countries.
Case studies take one or more selected examples of a social entity as their subjects,
for example, communities, social groups, organizations, events, life histories,
families, work teams, roles or relationships, etc. For example, case studies can be
used to provide a more richly detailed and precise account of the processes at
work within particular types of case highlighted by surveys, whether typical or
anomalous: they can be used to substantiate or fine causal processed thought to
underlie observed patterns and correlations.” Selective case studies can focus on a
particular aspect and deeply and detail analyze.
Case studies are typically based on two or more methods of data collection. The
subject can be a single-time study covered an extended period of time, or be
prolonged into longitudinal studies covering decades on a continuous basis or
with periodic follow-ups. Case studies are flexibility and diversity. A single
example often forms the basis for research on typical, deviant or critical cases.
Multiple case designs can be limited to two or three settings or extend to dozens of
cases; either to achieve replication of the same studies in different settings or to
compare and contrast different cases. Multiple case studies provide an important
alternative to the sample survey for certain research questions where there is a
need to provide broad generalization as well as to take account of complexity of
the subject-matter.
9
The flexible character of the case study design makes for very diverse types of
study. Probably the most widely used classification distinguishes between
individual case histories, community studies, studies of social groups, studies of
organizations and institutions, and those concerned with specific events, roles
relationships and interactions.
2.1.2 Secondary Analysis as Data collection from previous studies and
re-analysis
Secondary analysis is any re-analysis of data collected by another researcher or
organization, including the analysis of datasets collated from a variety of sources
to create time series or area-based datasets. Secondary analysis of existing data is
likely to remain by far the most common approach to carrying out international
comparative studies, especially for studies that seek to cover large numbers of
countries and/or trends over time.
“A comprehensive research review can become a research project yielding
substantive information in its own right, especially if the new techniques of
meta-analysis are applied to all known studies on a particular issue. At its most
basic, secondary analysis consists of re-interpreting tables and statistical evidence
in existing reports, and thus overlaps with the research review. But secondary
analysis also extends to major studies in their own right which collate data from a
variety of sources to produce substantively new findings.”2
“The techniques of meta-analysis were developed mainly in psychology where
the studies reviewed are typically controlled experiments but in any case produce
quantitative data which are subjected to statistical analysis. The aim of
meta-analysis is to provide an integrated and quantified summary of research
results on a specific question with particular reference to statistical significance
and effect size (that is, the size or strength of the impact of one factor on
another).”3
The comprehensive research review, meta-analysis and secondary analysis all
offer the advantages of speed and relatively low costs compared to other types of
study, and the ground to be covered can be specified fairly precisely before the
project is started.
“Although they are distinct – research reviews and meta-analysis seek to
consolidate knowledge on particular issues, while secondary analysis may break
new ground – they all rely on existing information, and some studies combine the
research review with meta-analysis, or the research review with secondary
2
Hakim.C. (2000). Research Design. Successful Designs for Social and Economic Research.. London:
Second Edition.
3 ibid
10
analysis, or secondary analysis with meta-analysis.”4
Secondary Analysis respectively combined with Meta-analysis and Research
Review
In the studies of High-tech Zone, it can use the methods based on Secondary
Analysis to collect the data from previous researches. For example, describing
the situation of High-tech Zone, there are many authors did the similar
researches, as Li H. in 20035 and Li S. in 20076. For the study of the comparison
between Silicon Valley and Zhongguancun High-tech Zone, the previous
researchers like Cha in 20087, He in 20008, Zhang. K. in 20059 studied the
comparison of the models of Silicon Valley model and Zhongguancun High-tech
Zone.
2.1.3 Administrative records and Documents as Data collection from
institutional data
“Administrative records are collections of documents containing mainly factual
information compiled in a variety of ways (directly from those concerned, or
indirectly from employers, schools, doctors and others acting as informants) and
used by organizations to record the development and implementation of decisions
and activities that are central to their functions. Research based on administrative
records can all too easily become conflated with secondary analysis of research
data. Administrative records can provide information on topics or minority groups
which is not available by any other means, or only at disproportionate cost.”10
The sources of administrative records can be like censuses, population registers,
taxation registers, hospitalization registers, company records, harbor records, etc.
The administrative records will be used to get the data mainly from the
Yearbook in China, industrial reports and the statistics yearbook on
Zhongguancun, etc. announced by National Bureau of Statistics of China. Based
on the website11 of Zhongguancun High-tech Zone established by government,
it can be collected information about the general condition of Zhongguancun
High-tech Zone, the information of the main enterprises and industries,
4
Hakim.C. (2000). Research Design. Successful Designs for Social and Economic Research.. London:
Second Edition.
5 Li. H. (2003). An Economic Analyze about the Zhongguancun Science Park. Chinese Industrial Economy,
Vol 07.
6 Li. S. (2007). Innovation and development-about the Z-Park investing and financing system. International
Finance ,Vol 85-11.
7 Cha. E. (2008). Chinese Silicon Valley and US Silicon Valley. Chinese Market , Vol 07.
8 He. Jianxin. (2000). Silicon Valley,how far is it from us. Asia-Pacific Economic, Vol 02.
9 Zhang. K. (2005). The Comparization of Zhongguancun Science Park and Silicon Valley. High technology
and Industrialization , Vol 08.
10 Hakim.C. (2000). Research Design. Successful Designs for Social and Economic Research.. London:
Second Edition.
11 Zhongguancun Science Park. (n.d.). Retrieved from Zhongguancun Science Park: http://www.zgc.gov.cn/
11
economic indicators of the governmental reports, the policies and regulations for
Zhongguancun High-tech Zone, the potential projects to encourage the
entrepreneurs and skill labors to join-in and some of the good projects are
designed for the enterprises.
2.2 Critical argument about methodology and limitation
The methods chosen to use are case study, secondary analysis, research review
and administrative records and documents. But there still exist the weaknesses for
these methods of collecting data.
The method of case study was used to do the research on the main body of
Zhongguancun, which has the weakness of lacking on the comparison with other
cases. Zhongguancun is one cluster example with particular Chinese
characteristics, but actually it cannot use the results of research on Zhongguancun
to generalize the characteristics of all the other clusters in China. The method of
secondary analysis was used to re-analyze the secondary data, which actually
made the data missing. And the author is hard to keep the same aim of the original
data collector, which still influence the validity of the data and the time. The
method of research review used the research results of the previous researchers,
even their own results still need to be confirmed and completed. The method of
administrative records and documents mainly collected data from the statistic
perspective, and the validity of data and time still need to be treated critical.
This paper is a master thesis work, by the limitation of the time, and the
limitation of the cost, some data are still hard to collect. It cannot easily to
interview or make the questionnaires to somebody worked in the high-tech zone
or somebody worked in the governmental institution, which is why to get all
data the author need nearly become impossible.
12
3. Theoretical Framework
3.1 Theoretical studies around regional development
Many scholars analyze the characteristics of industrial clusters from many
different perspectives, as competitive advantage and formulation mechanism.
Marshall12 first analyzes the description of the situation that a large number of
specialized SMEs geographically concentrated and developed, and then the
concept of industrial district is proposed in the published paper of 1890. Weber13
used the concept of agglomeration economies to explain the phenomenon of
cluster in 1909. Porter established a "diamond model" to explain the
international competitive advantage of a country formatted with industrial
agglomeration, to integrate the industrial cluster theory into the framework of
competitive advantage theory14 in 1990. Krugman used the "center - periphery
model"15 to describe the important role of region and geographic playing in the
element configuration and competition in 1991. Some scholars representative as
Italian scholars analyze the internal characteristics of the "new industrial
districts" with the condition and need of the new technology, for example, the
studies of Bellandi16 in 1989 and Becattini17 in 1990. Schmitz18 illustrates that
the model of collective efficiency uses the developing countries’ cluster as the
research objects and makes elaboration of the growth mechanism of the cluster
in 1995.
The research of cluster directly experiences from the success stories of some
developed countries, such as the "third Italy" researched by Sforzi19 in 1989,
Silicon Valley researched by Saxenian20 in 1994 and so on. There are still many
related theories and concepts, such as New Industrial Spaces, Industrial District,
Innovative Milieu, Industrial Clusters and Regional Innovation System and so on.
It emphasizes the significance of industrial cluster to promote industrial
innovation and remain the competitive advantages under the condition of new
economic environment.
12
Marshall, A. (1890/1920) Principles of Economics. 8th ed. (1st ed 1890). London: Macmillan.
Weber, A. (1909/1929) Theory of the location of industries. Chicago: The University of Chicago Press.
14 Porter, M.E. (1990) The Competitive Advantage of Nations. New York: The Free Press.
15 Krugman, P. (1991) Geography and trade. Cambridge, Massachusetts: MIT Press.
16 Bellandi, M. (1989) The industrial district in Marshall. London: Routkedge Press
17 Becattini, G. (1990) The Marshallian industrial district as a socio-economic notion. Versione corretta di
18 Schmitz, H. (1995) Collective efficiency: Growth path for small-scale industry. Journal of Development
Studies, Vol. 31, Issue 4, 529 - 566
19 Sforzi, F. (1989) The geography of industrial districts in Italy. in E. GOODMAN, J. BAMFORD and. P.
SAYNOR (Eds) Small Firms and Industrial Districts
20 Saxenian, A. (2006) The New Argonauts: Regional Advantage in the Global Economy. Harvard University Press
13
13
3.2 Theoretical Concept
Michael E. Porter in Harvard University had the following classic description
about the concept of industrial clusters: “Clusters are geographic concentrations
of interconnected companies, specialised suppliers, service providers, firms in
related industries, and associated organisations (such as universities, standard
agencies, trade associations) in a particular field linked by commonalities and
complementarities. There is competition as well as cooperation.”21
According to Porter's understanding, industrial cluster is the organic whole body
with close links between enterprises and other relevant organizations with a
particular industry. Cluster should include at least the following factors: First of
all, it related with a particular industrial field. In general, the industrial clusters
are often formatted based on associating the enterprises and other institutions
with the certain industries. Second, the enterprises in the clusters often have o
close links with other institutions. The all enterprises and related institutions are
the nodes in the networking in the clusters, which is the key to the formation of
industrial clusters. Third, the industrial cluster is a complex organic whole body.
Industrial cluster does not only include enterprises, but also includes the
chambers of commerce, associations, banks, intermediaries, etc., which
constitutes the entity of a cluster.
Industrial cluster strongly promotes the rapid development of regional economy
depend on the internal networking. In many countries, local governments earn a
lot of successful experiences on improving the regional competitiveness through
developing the local industrial clusters, and it leads the effective integration of
the local production system and international resources. In recent years, the
coastal areas of China began to form a larger group of influential industrial
clusters, which became a very important method developing regional economic,
enhancing industrial competitiveness, and achieving leapfrog development.
3.3 Characteristics22
3.3.1
Geographical agglomeration
From the space point of view, the feature of geographical concentration of the
cluster industry has the feature of the geographic proximity, while industries are
relatively concentrated in a few specific fields, with a strong competitive
advantage. In other words, the share of industry in the area is bigger than any
other area, or the industry in the area plays a dominate role within the whole
21
Porter, M. E. (2003) The economic performance of regions. Regional Studies, Vol 37(6,7): 549
Based on the theoretical analysis of Zhao. Z.(2008) Industrial cluster: concepts and characteristics
http://www.chinavalue.net/Article/Archive/2008/4/16/109844.html
22
14
industry, and it still concentrates to get the geographical agglomeration in a
geographical area. Such as Germany's steel production concentrated in
Dortmund, Essen and Dusseldorf, but the production of lathe instruments
concentrated in Remscheid. In the United States, automobile industry
concentrated in the Detroit, comparatively, high-tech manufacturing industries
are concentrated in Silicon Valley.
3.3.2
Specialization
Specialization characteristics of the cluster means the production and service of
every single enterprise in the cluster always focus on some restricted products
and processes, as the features of formatting specialization. The production and
service in the cluster also has the trend of concentration, tightly around a
specialized production process. Such as Bangalore in India, more than 90% of
the enterprises work on developing, producing and selling the software, but in
Dongguan of Guangdong Province in China, there accounted a majority of
enterprises work on producing and selling electronic products.
3.3.3
Quantity
The quantity feature means that the quantity of the enterprises in the cluster
engaged in the same or similar industries occupies a relative majority. For
example, in Italy, hundreds of related companies all concentrated in the
Emilia-Romagna of Italy and its surrounding areas processing in tile production
and sales activities. In 1998, the output of this industrial cluster accounted for
one third of the world's ceramic tile production, nearly two third of total
production in Europe, four fifth of total output in Italy, and the turnover reached
more than 10 billion US Dollars.
3.3.4
Innovation
Innovation feature of the cluster can form the mechanism and atmosphere of the
inner learning and external imitation. Innovation can be considered as the driven
force forming industrial cluster and it development. Each enterprise in the
cluster should continue learning and processing on the technological perspective.
While it also needs to continue learning from other enterprise about new
technologies, new materials and new breakthrough technology in order to spread
and diffuse the technology and knowledge.
3.3.5
Networking
The networking feature of the cluster means that the enterprises in the cluster
form a close relationship networking through the connection of universities,
15
research institution and enterprises. Each body frequently engaged in trade,
communication and interaction, learning and cooperation, through the various
formal or informal relationships to jointly promote sustainable development of
the cluster. In this perspective, the performance of mass high-tech industrial
clusters have obvious evidence, such as Silicon Valley in the United States,
represented by the close connection between universities and businesses and the
fruitful cooperation.
3.4 Distinction out from other concepts
Industry Concentration and Industrial Cluster
Industrial concentration is that several large scale enterprises within a given
industry have the priority in the whole share of the industry. In general, if not
specified, the industry concentration mainly reflects the level of monopoly of
enterprises in the industry, while the spatial distribution is not directly related
with the industry, but it is still not particularly concerned about the links between
the enterprises. Thus, the difference between the concept of industrial clusters
and industry concentration really has a long distance, which means there is no
direct link between the two concepts.
Industrial Agglomeration and Industrial Clusters
Industrial agglomeration is the process of spatial concentration, as early as
Weber began to use the concept of agglomeration in "industrial location theory",
which mainly taught about industrial agglomeration. Industrial agglomeration is
one of the important researches focusing on economic geography, which mainly
describe and analyze the phenomenon of the industry concentrated on the space
perspective. Industrial agglomeration pays particular attention to the process of
the transition from the divergence to the convergence of the industrial
distribution. Industrial agglomeration can share the basic infrastructure to benefit
from the scale-economy when it develops in a common space. The concept of
industrial cluster is close to the concept of industrial agglomeration, but there are
still differences between the two concepts. The space agglomeration of industry
can form the industrial cluster, but not all the industrial agglomeration can form
an industrial cluster. It still cannot form a cluster although some industrial
agglomeration appeared, but they don’t have any connection between each other.
Therefore, the industrial agglomeration is only one necessary condition of
formatting the industrial clusters, but not can be instead of all conditions.
Industrial chain and industrial clusters
Industrial chain is a very traditional concept, which describes the process of a
product associating from raw materials, processing, production, sales and other
links. As early as 1958, Hirschman illustrated the concept of industrial chain
from the perspective of the forward linkages and backward linkages in
16
"Economic Development Strategy". There still have a lot of different concepts
discussed around the industrial chain, such as the value chain, production chain,
supply chain, commodity chain, etc. Compared with the industrial cluster, the
industrial chain has also stressed the links between industries, but the industry
chain mainly focused on the linkages of inter-industry. The industrial chain less
focused on other organizations than for the industry, such as the chambers of
commerce, the associations, and the intermediaries. In addition, there is no
concept concerning space agglomeration. The concept of industrial clusters
concern much more than the concept of the industrial chain, which doesn’t only
include both inter-industry linkages and the linkages between the industry and
other relevant institutions, but also stresses the space agglomeration.
Industrial Districts and Industrial Clusters
Industrial districts described based on growth theory driven by external power,
and under the theories of new international division of labor, product life cycles
and growth theory, it transfer to less developed areas when the production of
product reaches the mature stage in order to reduce costs. Differential with
industrial districts, industrial clusters emphasizes the close links within
industries, that is the growth theory driven by internal power. However, in some
industrial districts, there are some very close links between enterprises that form
a cluster. Therefore, the industrial districts provide the space for the formation of
industrial clusters, but the formation of industrial clusters will still depend on
whether there are the close links between the enterprises.
3.5 Classification of cluster
Clusters can be classified from many different perspectives. Such as according to
formation mechanism, the clusters can be classified as market-led industrial
clusters and government-led industrial clusters; by factors allocation, the clusters
can be classified as labor-intensive industrial clusters, resource-intensive
industrial clusters, and technology- intensive industries cluster; according to the
types of industries, the clusters still can be categorized as traditional industrial
clusters and high-tech industrial cluster; by the different sources of funds, it can be
classified as foreign-funds driven industrial clusters and domestic-funds driven
industrial clusters; by the different sizes of enterprises, the cluster also can be
classified into large-size enterprises dominated industrial clusters, SMEs
dominated industrial clusters and single monopoly enterprise dominated
industrial cluster; and by the grade of innovation activities, the industrial clusters
can be divided into imitational industrial clusters and innovative industrial
clusters.
17
In the case, it is important to clearly define which kinds of industrial cluster of the
Zhongguancun high-tech zone belong to. And presently, the industrial clusters
mainly use the approaches of classification by different types of industries.
According to the nature of the industries, the industrial clusters can be divided into
three types:

Traditional industrial clusters. It is the traditional industries with a traditional
handicraft or mainly labor-intensive industries, such as the developed
industries of textiles, clothing, footwear, furniture and ironware. A large
number of SMEs geographically concentrated and have the condition of
spatial proximity, forming an organic market networking. In these clusters,
the more precise division of labor, the higher degree of specialization, the
more development on the market networking. A typical example is the Italian
Industrial District.

High-tech industrial clusters. It mainly relies on the capabilities of local R &
D, such as the well-known universities and research institutions. To develop
the high-tech industries, the enterprises closely cooperate with each other,
within a strong innovative atmosphere. The software industrial clusters of
Silicon Valley in the United States and Bangalore in India are the typical
representations.

The industrial clusters of the combination of capital and technology, such as
Japan, Baden – Württemberg in Southern Germany, etc. It is generally said
that, there are uncertainty as well as the increasing separation of R&D and
production, leading the high-tech enterprises prefer more convergence and
agglomeration than the enterprises of the traditional industries. Particularly,
the enterprises of the high-tech industries have more innovative activities,
which much prefer to exist as in the clusters. And the governments often
give much support on the high-tech industrial clusters based on knowledge
and innovation.
3.6 The life cycle of cluster
The life cycle theory of the cluster is the process starting with arising of industrial
cluster, ending with the death of the cluster. In essence, it is the process of the
activities of the enterprises in the cluster as the performances of competition,
cooperation, alliances and other relationships. Learned by the concept of life cycle,
the development of industrial cluster experiences the stages of birth, growth,
18
decline and death, as every social system.23
Birth – A cluster emerges in a particular location can be explained as the following
two ways, one is referring about the natural factor advantages, such as the natural
resources or the transportation, etc. In this cluster, there always have the
universities, as the role of “brain trust”. Another reason emerges the cluster as
historical accidents, as the entrepreneurial person starts an enterprise in order to
increase local demand and the new firm formation, etc. finally emerging a cluster.
Growth – With the competition and cooperation, the region gets more
attractiveness to a lot of firms. The networking and social capital emerging make
the cluster growth. The diamond theory of Porter is an engine performed as cluster
growth and upgrading. If the rivalry, cooperation, openness to international
markets and lead customers perform, the labor markets and universities are
interacted to enhance factor specialization and upgrading, even increased the
demand sophistication. When all four drivers begin to interact and go through the
upstream and downstream linkages, it will emerge a larger cluster. Some
advantages in demand or related clusters will promote the growth of cluster, but
“others will evolve over time.”24 There is still a multitude of linkages across
institutions, such as transforming the public science to private science and
commercializing the new knowledge. The venture capitals do not only provide the
money, but also offer skills as the much more important thing. Policy as the visible
hand plays a role with the evolution of cluster-specific institution. Policies
perform to affect to attract more and more skilled people and enterprises into the
region. “Dynamic clusters experience a circulation of ideas, skills and resources,
including brain circulation.”25
Mature and renaissance – The cluster is a mixture of the framework,
entrepreneurship, social capital, linkages with international market and policies.
“Established clusters typically enter a more static phase at some point, including
concentration into fewer firms through mergers and acquisitions and sharply
declining rates of entry of new firms.”26 But in some cases, with the technological
shifts and new regulations, the entry of new enterprises, new business formation
and new products re-emerge within the “much more dynamic business climate”.27
Death – There are still many cases at some point declined towards Museum, by
many conditions as excessive concentration, heavy government involvement
saving and subsidizing companies, etc.
Sölvell. Ö.(2009) Clusters. Balancing Evolutionary and Constructive Forces. Second edition, Jan 2009.
ISBN:978-91-974783-3-5
24 ibid
25 ibid
26 ibid
27 ibid
23
19
3.7 Critical argument about Porter´s theory
The industrial cluster theory of Porter has been questioned by some scholars,
representative as Martin and Sunley28, etc. Some scholars believe that Porter
researches the industrial cluster theory from the strategic management
perspective which is lack of wide applicability. Some scholars think that Porter's
theory overemphasize the role of government played in the industrial
competition. And the economic activities of development of industrial clusters
have many complex factors which cannot just such simply construct by four
basic elements of diamond model. And Porter ignored the effect of international
investment and trade activities on Diamond Model. The role of micro-variables
Porter model is not clear, which the model should be more emphasis on the
cultural differences in different countries.
The most serious limitation of this model is that it is essentially a conservative,
although it interpreted how the existing industrial clusters birth and grow, but it
cannot predict how they will develop. Porter still doubted himself about the
exact boundary of the cluster that few clusters fit the standard border of
industry-classification system. It means that it is hard to control many important
actors with the competition and cross-sector linkages.
Industrial clusters of Porter research on particularly developed countries,
particularly some of the more mature, competitive industry clusters in the United
States. But how to explain the clusters of developing countries or the regional
efforts to foster cluster formation and growth is deeply lacked. Therefore, simply
using Porter's diamond theory is difficult to explain the growth industrial clusters
of a developing country. The developing countries are still confused in the
process of developing industrial clusters, which is hard to find the key answer
out from the issue of Porter's theory. On the other hand, Porter's industrial
cluster theory more concerned about the endogenous forces in the cluster, for
example, to enhance the competitiveness of enterprises in the cluster, to arise the
innovation activities of the enterprises, to construct the regional innovation
environment. But the global connections with industrial networking and social
networking at the open and global economy have been ignored.
However, the competitive advantage theory of Porter still has a very important
meaning as theoretical and practical significance, especially the competitive
advantage theory emphasizes the dynamic competition and it will be constantly
changing. The industrial cluster promotes local business development by
creating an innovative environment, thus more competitive and more rapid
innovation than the foreign competitors. In the industrial cluster theory of Porter,
28
Martin R & Sunley P. Deconstructing Clusters: Chaotic Concept or Policy Panacea [J]. Journal of
Economic Geography, 2003,3(1):5—35
20
it not only absorbed the agglomeration economies, economic externalities and
new social economics, but also referred the new industrial districts theory about
the regional innovation networking, specialization of the division of labor, etc.
As Porter said himself, industrial cluster theory more closely link to the
networking theory, social capital, agglomeration of economic and enterprises
competition theory, even all approaches led to economic prosperity, and then
extend these theories to a wider range. Porter's competitive advantage theory and
the illustration of industrial clusters still have the important meaning for
analyzing the cases whether it is successful.
21
4. Case study with detail analysis about
Zhongguancun
Zhongguancun High-tech zone is one of the typical representatives as the
industrial cluster of deriving from the S&T Resource. Zhongguancun is one of the
most intensity area with education and R&D resources, which has a sum of 68
universities, as Tsinghua University, Beijing University and other institutions
colleges, 270 research institutions represented by Chinese Academy of Sciences,
51 State-Key Laboratories, accounting for 28% of the whole state; 22 National
Engineering research centers, accounting for 22% of the whole state; 20 National
Engineering technical Research Centers, accounting for 19.8%; 13 National
enterprise technical centers; 11 national professional bases; and 65 R & D centers
set up by international enterprises. 29 Gathering around these research and
development resources, it formed the high-tech industrial cluster with the basis of
research and development resources and the key on technological innovation with
promoting the use of technology.
The first high-tech enterprise was born in Zhongguancun in 1980. In the end of
1987, Zhongguancun concentrated 148 high-tech enterprises located in 10 square
kilometers grounds including 97 enterprises in the electronic and information
technology industry, accounting for 66% of total number of enterprises in
Zhongguancun. Until 1988, Zhongguancun was identified as "Beijing
Experimental Zone in high-tech industry". The number of high-tech enterprises in
the region has rapid growth to 4500 in the Year of 1998. In the end of 2006,
Zhongguancun High-tech zone has a total number of more than 16,000 enterprises,
30
and most of them are small and medium innovative enterprises. Currently,
Zhongguancun has formed a national leader in industrial clusters, leading by the
information industry, and still has a flourishing situation with a number of
high-tech industries in software, integrated circuits, networking communication,
biological medicine, new energy and environmental protection, etc.
But there are still some authors argued that it did not show much evidence in the
developing countries while most researches act in the developed countries. But
with the studies of Korea’s two most fast-developing of industrial districts,
Korean scholar Pak Sam-ok and American scholar Makusen put forwards the new
definition of the new industrial districts which is much more suitable with the
situation of the developing countries. The characteristics they announced about
the new industrial districts in the developing countries: rapidly growth, labor
mobility of interval-industrial districts, and the international industrial links, etc.
29
Zhongguancun Science Park. (n.d.). Retrieved from Zhongguancun Science Park: http://www.zgc.gov.cn/
Beijing Municipal Bureau of Statistics (2009) Beijing Statistical Yearbook 2009
30 ibid
22
According to these characters, “Satellite Industrial Districts” has been announced
to understand the issue about new industrial districts in developing countries.
Some phenomenon of new industrial districts in the developed countries appeared
similar with that of the developing countries like China by learning from Silicon
Valley. Zhongguancun has the three important characters of new industrial
districts: mainly SMEs, formation of start-up enterprises, and innovation. So
Zhongguancun can be considered as in the beginning phase. But there still some
scholars argued that, according to the embeddedness and networking,
Zhongguancun cannot be considered as a phenomenon of industrial cluster the
new industrial district.
Figure1 The Layout of Zhongguancun Science Park until Year of 2010
Sources:
http://www.zgc.gov.cn/english/AboutZPark/Z-ParkProfile/ZPark_Map/35231.htm
http://www.zgc.gov.cn/sfqgk/gyjj/55169.htm
23
4.1 The historical development of the Zhongguancun
High-tech Zone and General introduction
4.1.1
The general development of Zhongguancun High-tech zone
Zhongguancun High-tech zone (previously called Zhongguancun Science Park)
originated in the early 1980s in the late 20th century, firstly called the
"Zhongguancun Electronics Street". In 1988, it was approved by the State Council
of China to become the first high-tech park in China.
In June 1999, the State Council officially approved “The Instructions about the
implementation of technology and education strategies and acceleration of the
construction of the Zhongguancun Science Park”. It is expected that the
Zhongguancun Science Park become a driven force of improving the international
competitiveness and achieving to establish the incubators, radiation bases and the
high quality of innovative talents of the whole state. To strive about 10 years time,
the Zhongguancun Science Park can place into one of the world-class science
park.
“Zhongguancun Science Park covers all the Beijing’s highly concentrated
educational, scientific research and high-tech industrial zones. With its
centerpiece in the city’s northwest, the Park comes up with a landscape of
multiple sub-parks and industrial bases including Haidian, Fengtai, Changping,
“the Electronics City”, Yizhuang, Desheng and Jianxiang located elsewhere in
Beijing. The total area of the Park is 232 square kilometers.”31
As the first state-level high-tech industrial zones in China, the Zhongguancun
High-tech zone in Beijing covers the most intensive areas with the science,
technology, intelligence, talent and resources. Zhongguancun is one of the most
intensity area with education and R&D resources, which has a sum of 68
universities, as Tsinghua University, Beijing University and other institutions
colleges, 270 research institutions represented by Chinese Academy of Sciences,
51 State-Key Laboratories, 22 National Engineering research centers, 20 National
Engineering technical Research Centers, 13 National enterprise technical centers,
11 national professional bases; and 65 R & D centers set up by international
enterprises.32
In the past ten years, economic development in the Zhongguancun high-tech zone
has always maintained 30% growth annually. In 2005, the total number of the
high-tech enterprises reach the amount of 17 000 enterprises, and the revenue of
31
http://www.zgc.gov.cn/sfqgk/gyjj/55169.htm
Zhongguancun Science Park. (n.d.). Retrieved from Zhongguancun Science Park: http://www.zgc.gov.cn/
Beijing Municipal Bureau of Statistics (2009) Beijing Statistical Yearbook 2009
32
24
the sales over 480 billion RMB, which is twice of the revenue in 2000. In the five
years, average annual growth reaches the level of more than 20%, accounting for
around one seventh of the whole revenue of all high-tech zones in China. It
achieved the value added of 96 billion RMB, representing the 14.1% of the GDP
in Beijing. The industrial cluster is initially setting up as the key represented of
software, integrated circuits, computer, networking and communication. The
desktop PC occupied over 40% of the domestic market share and the notebook as
25% share, software and IC design industry accounting one-third of total share,
and the export of software account for a half of the whole country. The high-tech
service sector rapid developed, accounting for 45% of the total economic index in
the zone, led economic restructuring and industrial upgrading of the capital.
4.1.2
The development pattern of Zhongguancun High-tech zone
Analysis by the development process of Zhongguancun High-tech Zone
The development pattern of Zhongguancun High-tech zone belongs to the
development model of integrating market-oriented and governmental guided
from the development point of view of Zhongguancun high-tech zone.
Zhongguancun High-tech zone was established by spontaneously built on the
basis of the market and "Zhongguancun Electronics Street" was the
market-oriented model of development, which began in the 1980s era in the late
20th century. Beijing Municipal Government announced "The Provisional
Regulations on Experimental rules of developing Beijing’s New Technology
Industry Zone" in May 1988 to establish the first national high-tech zone. And
the second stage is from June 1999, which State Council approve to speed up
construction of the Zhongguancun High-tech zone. As a result, the development
model of the Zhongguancun High-tech zone integrates a market-oriented
high-tech zone with the government guidance.
Phase
s
Foreign
Natural resource
Market demand
-led phase
-led phase
Main driven forces
Natural resources
Business tradition
Territorial culture
Domestic demand
increased
Participation in the global
Industrial radiation
division of labor
Constraints of industry
transfer
Foreign Direct Investment
transfer
and upgrade phase
–led phase
The global industrial
Export increased
Industrial
investment
capacity
Competition in the
cluster
Industrialization
Industrial chain
Figure 2 Evolution phases of Industrial Clusters stages: dividing by the main driven forces
Source: Compiled by the author
According to the main driven forces of developing the each stage of cluster, the
evolutional development of Zhongguancun can be divided into four stages, as
25
natural resource-led phase, market demand-led phase, foreign investment-led
phase and industrial transfer and upgrade phase. But according to the theory of
life cycle, these four stages still locates in the growth stage, which cannot
compare with Silicon Valley in mature stage of development process. The issue
will be discussed and analyzed carefully in the later chapters.
The four stages in the growth stage of development process have no strict time
intervals, which imply that exist many different forms of driven forces in the
same phase to promote the development of industrial clusters. But it has
different features at different stages.
In the early phase of introduction stage, the natural conditions include natural
resources and social resources as business tradition and territorial culture, which
are mainly driving the development of industrial cluster. Natural conditions
include two categories, the natural resources and social resources, including
business tradition and territorial culture with a long history, which the social
resources make a greater contribution. Based on the promotion of natural
conditions, it often forms many enterprises produced similar products
agglomerated in a village or a town. Therefore, the phenomenon of industrial
Cluster appeared.
With the establishment of market-oriented economy, domestic demand and
export trade grow, boosting the development of industry clusters. The growth of
domestic and international market demand provide the dynamic forces to
promote the introduction stage. In this stage, it has the main characteristics of
increasing the capacity of enterprises and scale economy formed. The industrial
cluster holds more and more prominent advantages to attract a large amount of
enterprises entering in the cluster. Industrial cluster has initially formed the
industrial chains with the internal division of labor. The industrial cluster entered
the mature stage.
In the years of mid-1990 period, the scale of foreign direct investment gradually
increased. Many international enterprises transfer the assembly plants in these
areas, stimulating more investment in supporting manufacturers in order to
stimulate the development of various local industries with forming a cluster. By
the promotion of economic globalization and the reconstruction of the global
division of labor, it brings a lot of foreign direct investment to Zhongguancun,
especially after China's accession to WTO in 2001. Foreign direct investment
help Zhongguancun develop a participation of the global division of labor in the
industrial clusters. After the development of 20 years, Zhongguancun industrial
clusters gradually enter the early stages of growth phase. By the constraint of the
factors of international competition, industrial scale and the regional capacity
constraints, high-tech and high value-added industrial clusters develop as a
26
major direction of development.
Analysis by the composition of Zhongguancun High-tech zone
From the composition point of view, the develop pattern of Zhongguancun
High-tech zone belongs to the system with the close linkage across Universities,
Research institutions and the enterprises. Zhongguancun High-tech zone covers
the most intensive area with science and technology, intelligence, talent and
resources, which has more than 40 universities and research institutions with
more than 40 million students, as Tsinghua University, Beijing University. There
still locates about 270 various types and levels research institutions represented
by Chinese Academy of Sciences, including 41 national engineering centers, 42
key laboratories and 10 state-level enterprise technical centers. 33 These
universities and research institutions organized into a cooperative networking
and format the interaction community through the participation of intermediaries
and financial institutions with the important roles played by the connection of
the bridge between them. It plays their respective advantages through the
division of labor to use the interaction and collaboration between them and the
technical achievements are transformed into production and marketing of
products in order to broaden the space for innovation.
Analysis by the administrative and investmental institutions of
Zhongguancun High-tech zone
From the perspective of the administrative and investmental institutions of
Zhongguancun High-tech zone, Zhongguancun High-tech zone belongs to the
development pattern of government-led administrative and investmental patterns.
From the perspective of administrative institutions, the highest decision-making
institute is the high-tech leading group of Beijing Municipal Government, and
the implementing agency is the Administrative Committee of Zhongguancun
High-tech zone. From the perspective of investmental institution, the investment
of the government mainly used for establishing the infrastructure, building
research institution and basic research, and launching the strategic planning
projects in the zone. Therefore, from the view of the administrative and
investmental institutions of Zhongguancun High-tech zone, Zhongguancun
High-tech zone belongs to the development pattern of government-led
administrative and investmental patterns.
4.2 Geographical agglomeration
“Zhongguancun Science Park covers all the Beijing’s highly concentrated
33
Zhongguancun Science Park. (n.d.). Retrieved from Zhongguancun Science Park: http://www.zgc.gov.cn/
Beijing Municipal Bureau of Statistics (2009) Beijing Statistical Yearbook 2009
27
educational, scientific research and high-tech industrial zones. With its
centerpiece in the city’s northwest, the Park comes up with a landscape of
multiple sub-parks and industrial bases including Haidian, Fengtai, Changping,
“the Electronics City”, Yizhuang and others located elsewhere in Beijing. The
total area of the Park is 232 square kilometers.”34
It involved the enterprises of in many industrial fields of e-commerce,
value-added wireless, Web applications, telecommunication technology, IC
design, software products and services, networking security, digital television
and advertisement, which it can fully realize the great attractiveness of
Zhongguancun High-tech zone by accessing a lot of money. As the first national
high-technology industrial development zones of China, the Zhongguancun
High-tech zone will undoubtedly be covering the technology, intelligence, talent
and resources to the most intensive areas. Recently, the high-tech enterprises in
the zone rapidly developed and it has the strong competitive advantages of
independent innovation by creating a lot of products with internationally
competitiveness.
Zhongguancun High-tech zone has experienced two important phases of its
development. "Zhongguancun Electronics Street" began in the 1980s in the late
20th century as the first stage. Beijing Municipal Government announced "The
Provisional Regulations on Experimental rules of developing Beijing’s New
Technology Industry Zone" in May 1988 to establish the first national high-tech
zone. And the second stage is from June 1999, which State Council approve to
speed up construction of the Zhongguancun High-tech zone.
Zhongguancun High-tech zone occupied the more and more proportion of shares
in the high-tech industry in Beijing. The brand effect of "Zhongguancun"
promotes the adjustment of the regional industrial structure and upgrading "One
Zone" mode and building professional parks.
By the division and agglomeration of the industries, the geographical layout of
Beijing high-tech industries shows more clearly as the three gradients, the
knowledge innovation area by the core of Haidian District, the technological
innovation area along the fifth ring roads of the city, and the manufacturing
industrial districts of multi-point concentration and the exurb area by the
specialized division of labor.
Electronic informatics industry performs as the core industry with the 56.47% of
total share of the revenue in Zhongguancun in 2008. The revenue of electronic
informatics of Zhongguancun reached 577.3 billion Yuan, accounting for 9.16%
of the total revenue of China in 2008. Only Huawei applied the 1737 patents to
34
http://www.zgc.gov.cn/sfqgk/gyjj/55169.htm
28
World Intellectual Property Organization, and it became the biggest patent
application enterprise over the world, still located in Zhongguancun.35 Many
enterprises belonged to the first 500 ranking enterprises located in
Zhongguancun, which dominates the whole electronic informatics industry
developing. But by the lag of the data and unclear with the classification of the
industries, it is hard to find out the construction of the electronic informatics
industry.
By reading a lot of governmental publications, the electronic informatics industry
includes mainly R&D activities and part-manufacturing, both on the fields of
software and hardware.36
4.3 Specialization37
4.3.1 Division of Industries
The scope of high-tech enterprises has been reduced in 2008, but the total
revenues and total assets still maintain to increase and the industrial scale
continues to grow. The index of industrial scale represents the quantity of
enterprises within the industry. The industrial scale index grows slightly higher
than the previous year, reached to 212.91 point.
Industry scale index and growth rate
250
35,00%
30,00%
200
25,00%
150
20,00%
100
15,00%
10,00%
50
0
industry scale index
growth rate
5,00%
2004
2005
2006
2007
2008
100
125,7
159,2
212,2
212,9
25,70%
26,65%
33,29%
0,33%
0,00%
Figure 3 Industry scale index and growth rate from Year 2004 to 2008
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
35http://www.zgckfsys.com/pmi/openlabinfoadmin/infoshow.jsp?objid=9272a50e7d69427baf0f6e9377fa994d
http://www.zgc.gov.cn/tjxx/nbsj/2008nsj/59901.htm
Self – opinion of Author
37 Chapter 4.3 mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Zhongguancun Index
2009. The sources of other following data in this part are ignoring to mark.
36
29
The number of enterprises reduced in 2008. The number of enterprises in
Zhongguancun reduced to 18437, which was 2590 lower than the number of the
enterprises last year. The financial crisis led some enterprises bankrupted. And the
re-determination of high-tech enterprises, the number of new-entrance enterprises
gradually reduced and some part of the enterprises in the park failed to pass the
identification of recognizing the high-tech enterprise, that why the statistical data
of this part of enterprises is not included into the account.
Total economy indicators continued to growth in 2008. The total revenue reached
the mark of trillion RMB (1.02224 trillion RMB), 13.1% upper than same period
of last year. The total industrial output of industries is 380.51 billion RMB, a little
lower than last year, but comparatively the growth rates of total revenue and total
output are much lower than the previous year.
The change of three indicators
in the period of 2004-2008
1600
Billion RMB
1400
1200
1000
800
600
400
200
0
2004
2005
2006
2007
2008
industry output
191,78
261,18
344,75
385,04
380,51
total revenue
371,83
487,29
674,47
903,57
1022,24
total assets
643,8
800,98
968,89
1372,74
1439,32
Figure 4 The change of three indicators in the period of 2004 to 2008
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
The total assets remain the trend of growth. The scale of total assets of
enterprises reaches 1.40 trillion RMB, 4.9% upper than the same period of last
year. By further analysis, it showed that the growth rate of flexible assets and
long-time investment slowdown, respectively increasing at 36% and 180% in
2007, but in 2008 the growth rate is averagely not more than 10%. The scale of
fixed asset is somewhat reduced, 3.8% downward compared with the same
period of the previous year, while this kind of assets increased twice in 2007.
30
4.3.2 Structure of industries
The industry structure still performs a good trend in 2008. But due to the impact of
re-identification the high-tech enterprises, new high-tech enterprises greatly
reduced in the park, leading the industrial structure index slightly fell, only
remained 184.70 points.
Industry structure index and growth rate
between 2004 to 2008
200
180
160
140
120
100
80
60
40
20
0
industry structure index
growth rate
35,00%
30,00%
25,00%
20,00%
15,00%
10,00%
5,00%
0,00%
2004
2005
2006
2007
2008
100
122,4
141,9
185,4
184,7
22,40%
15,93%
30,66%
-0,38%
-5,00%
Figure 5 Industry structure index and growth rate of the years between 2004 to 2008
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
Number of Enterprises
0,27%
0,17%
Electronic Information
3,90%
5,31%
6,07%
1,65%
0,86%
Biological and Medical
New Material
Advanced Manufacturing
9,81%
6,66%
Aerospace
58,97%
Modern Agricultural
New Energy
6,34%
Environmental protection
Ocean engineering
Figure 6 Distribution of number of enterprises in the different industry fields in 2008
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
31
Beijing Municipal Bureau of Statistics
The industry fields in Zhongguancun High-tech zone concern about Electronic
information, biological and medical, new material, advanced manufacturing,
aerospace, modern agriculture, new energy, environmental protection, ocean
engineering and other field industries.
In 2008, Zhongguancun industrial structure had the greatly changes. The
communication industry replaces the computer and related products industry to
become the largest industry of the park according to the total income. View from
the classification of industry categories, the revenue of electronic information
industry accounted for 56.5% of the total park, as the first time falling lower
than 60 percent. The hardware equipment industries like the fields of computer
and related products, integrated circuits and other hardware devices suffered a
more serious impact, with the total revenue of 158.12 billion RMB and 37.75
billion RMB respectively, decreased by 28.8% and 16.4% share respectively.
And the share of total income has declined and the share of the computer and
hardware still reduced by nearly 10 percentage. There is a good performance on
the fields of software, environmental protection with the growth rate at 10%.
The changes of industrial structure are not only decided by the development of
the new industries of new materials, environmental protection, but also are
decided by the change of leading industries of computers and hardware.
Total revenue (billion)
0,32%
Electronic Information
0,24%
1,76%
Biological and Medical
11,45%
New Material
0,92%
Advanced Manufacturing
9,78%
Aerospace
0,78%
8,30%
56,47%
6,28%
3,70%
Modern Agricultural
New Energy
Environmental protection
Ocean engineering
Figure 7 Distribution of Industry fields according to total revenue in 2008
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
From the figure of the classification of industry fields according to number of
enterprises, it can observe the distribution of number of enterprises in the
different fields. The number of enterprises in the field of Electronic information
32
industry occupied nearly two third of the total number of enterprises in the zone.
The second biggest share of number of enterprises is in advanced manufacturing
industry, occupied 9.81%. The industries of new material, biological and medical
and new energy have the similar share of enterprises numbers, around 6%. But
there still have some industries with low number of enterprises, as aerospace,
ocean engineering and other industry fields.
There still remains a good development trend on high-tech services. Although
the financial crisis still has some impact on high-tech services led the slowdown
of development, it still places the better situation than the average level of the
whole development of the zone. In 2008, the total revenue of high-tech service
achieves 395.89 billion RMB, 25.1% upper than the same period of the previous
year. The share of total revenue in high-tech service reached 38.7% share of the
total amount, which is a slight increase over the previous year. Under the
condition of a decline in overall profit, the high-tech service sector increased 9.2%
over the same period of previous year. The total profit achieved 30.62 billion
RMB, accounting for 42.2% of the total share in the zone, which increased
nearly 5 percentages over the previous year.
The big enterprises hold the advantages further consolidation, with a comparison
that the small and medium enterprises has less effective in 2008. In 2008, the
number of enterprises has reduced, but the big enterprises with the revenue over
100 million RMB continues to grow, reaching 1018 enterprises, 14.5% upper than
the same period of the previous year. In the 1018 enterprises, the number of the
big enterprises of the revenue of billion RMB reaches 152 enterprises, which
increased 18 enterprises in the year 2008. From the perspective of observing the
scale of enterprises, the big enterprises have the obvious advantages. The revenue
of the over-100-million big-size enterprises makes the 90% contribution on the
total revenue in the high-tech zone.
The 100-million enterprises located in the leading position in the indicators of
total profit and technical revenue, which the dominant position of the 100-million
enterprises has been consolidated.
33
4.3.3 Labor of division
Employment in the end of the year
0,37%
0,58%
Electronic Information
Biological and Medical
12,05%
2,20%
1,36%
1,35%
New Material
Advanced Manufacturing
4,33%
Aerospace
10,77%
54,76%
Modern Agricultural
New Energy
6,67%
5,55%
Environmental protection
Ocean engineering
Nuclear Application
Figure 8 Employment in the end of the year 2008
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
Until 2008, the employment in the end of the year reached at the total number of
nearly 0.95 million. The employment perform the technological activities such as
R&D activities reached 0.32 million, accounted for more than one third share of
the total employment. Many industry fields have a good performance on high
employment of technological activities and R&D development, such as Electronic
Information Industry.
In some industry, it does not perform as the high employment in the technological
activities such as R&D activities, but a high percentage of employment of
technological activities, such as Electronic Information, Aerospace, and Nuclear
application, respectively 41.44%, 39.97% and 46.98%. Interestingly, the
percentages of employment of R&D development of these three industry fields
perform the higher percentage of employment of R&D development out of the
total employment, respectively 22.89%, 28.68% and 24.10%.
There still have some industry fields with high intensity of R&D development
occupied out of employment of technological activities such as R&D activities, in
Biological and Medical, Aerospace and Ocean engineering, respectively 60.41%,
71.74% and 69.00%, which means in these fields, the employment of R&D
development occupied a high percentage in the employment of technological
activities.
34
Technical fields
Sum
Electronic
Information
Biological and
Medical
New Material
Advanced
Manufacturing
Aerospace
Modern
Agricultural
New Energy
Environmental
protection
Ocean
engineering
Nuclear
Application
Others
Employment
in the end of
the year
employment
of
technological
activities
% of
employment
of
technological
activities
employment % employment
of R&D
of R&D
development development
%R&D
development
occupied the
technological
activities
941442
320958
34.09%
174797
18.57%
54.46%
515495
213634
41.44%
118018
22.89%
55.24%
52236
12576
24.08%
7597
14.54%
60.41%
62787
16037
25.54%
9172
14.61%
57.19%
101432
25878
25.51%
13557
13.37%
52.39%
12703
5078
39.97%
3643
28.68%
71.74%
12838
3395
26.44%
1692
13.18%
49.84%
40745
13199
32.39%
7184
17.63%
54.43%
20739
6732
32.46%
3152
15.20%
46.82%
5491
813
14.81%
561
10.22%
69.00%
3514
1651
46.98%
847
24.10%
51.30%
113462
21965
19.36%
9374
8.26%
42.68%
Table 1The division of labor comparative analysis from the employment situation
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
35
80,00%
The percentage of employment in technological
activities and R&D development
70,00%
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
% of employment of technological activities
% employment of R&D development
%R&D development occupied the technological activities
0,00%
Others
Nuclear Application
Ocean engineering
Environmental protection
New Energy
Modern Agricultural
Aerospace
Advanced Manufacturing
New Material
Biological and Medical
Electronic Information
Figure 9 The percentage of employment in technological activities and R&D development
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
4.4 Talents and Labor resources
Nowadays, High-tech Zones became one of the most developed regions in all the
countries. Silicon Valley started a new period of brain drain. With the brain drain
back to China, Silicon Valley model tried to imitate to apply in China.
In the meantime, Beijing is also a modern city with high speed of development
where it can be traced the emergence and rapid growth of the new and high tech
industries represented by electronic information, bio industry and
pharmaceuticals, environmental protection, the photo-electronics and new
36
materials and the birth of a batch of new and high tech achievements with
independent intellectual property rights. All these help Beijing become a promoter
of first High-tech Zone forming. Beijing does not only provide a wonderful
environment to a High-tech Zone, but also a lot of good support from government.
Immigrant entrepreneurs are both the product of Silicon Valley and the most
important carriers of its industrial system. As the region’s technology firms grew
in the postwar period, they attracted talent from all over the United States,
typically directly out of graduate programs in American universities. In the 1970s
and 1980s employers began hiring immigrants in growing numbers because they
represented a growing portion of university engineering graduates. By 1990
foreign-born professionals, a majority from Asia, accounted for more than a third
of Silicon Valley’s high-skilled technology workforce, yet their presence was
unrecognized outside the region. It was only later in the decade as these
immigrants became entrepreneurs that they gained national attention.
A small but meaning full proportion of individuals who left their home countries
for greater opportunities abroad have now reversed course, transforming a brain
drain into a “brain circulation”. They are returning home to establish business
relationships or to start new companies, while maintaining their professional and
social ties to the United States.
The growth of a technical community that connects Silicon Valley with the coastal
regions of China has created the third leg in a triangle of social and economic
relationships between Taiwan, China, and Silicon Valley. As Chinese engineers
extend their professional networking to the mainland, they contribute to the
growth of an important new center of global IT production as well as deepening
the division of labor between these increasingly specialized and interdependent
regions. The Chinese state and multinational corporations are involved in the
process, as are individual entrepreneurs, but it is the networking of overseas
Chinese engineers with ties to Silicon Valley who have transferred the technical
and organizational know-how as well as the business connections that are vital to
economic success in the current era.
The overseas Chinese technical community has twice altered the geography and
structure of semiconductor industry – first when engineers returned from Silicon
Valley to Beijing in the 1980s and 1990s. Technology and talent have moved once
again – this time to the Chinese mainland. China’s engineers are now managing
dozens of IC foundries and at least 500 IC design ventures – most with trailing
edge technology and very low cost structures – and the growing market in China
provides opportunities for experimentation in fields ranging from logistics to
wireless communications. Much of this innovation is targeted at the needs of the
Chinese market, and thus is potentially applicable to other developing economies
37
as well.
With “Made in China” being instead of “Created in China”, China has more and
more High-tech Zones. Zhongguancun High-tech Zone is the largest one of 56
high-technological High-tech Zones which has longest history as well.
Zhongguancun has become the brand name for Chinese new and high tech
industries, and it is called as “Chinese Silicon Valley”.
The experience of China differs in important ways from that of Silicon Valley.
There is a substantially large community of mainland Chinese in the United States
– many of them motivated to return by the opportunity to serve the China market.
They have the benefit of more than a decade of American investment in
developing an infrastructure of electronics suppliers in the mainland, which is
now available to support technology start-ups. Policymakers in China have
learned from Silicon Valley’s experience and have created attractive incentives to
lure returnees, and there is a deeper experience base among the investors and
entrepreneurs who helped to build Silicon Valley’s IT industry.
On the other hand, China’s incomplete transition from a planned economy has
created a daunting environment for return entrepreneurs. The uneven progress of
political reform in China is evident in a physical infrastructure that has
dramatically outpaced the development of the institutional infrastructure of a
market economy. China boats fifty-three nationally designated new and high –
technology zones and hundreds of High-tech Zones with advanced infrastructure
and aggressive promotional policies – but they lack the social structures, the
technical and managerial experience, and the financial and legal institutions that
support entrepreneurial success in the United States.
Now, Zhongguancun High-tech Zone became the most important “port” of
entering Chinese market and doing industry R&D for all global enterprises.
Zhongguancun High-tech Zone established by 10 sub-High-tech Zones, mainly
located in north-west area of Beijing. And it occupied about 100 square meters,
which close by a lot of famous universities as Tsinghua University, Beijing
University and Chinese Academy of Science, etc. The first enterprise of
Zhongguancun High-tech Zone established in 1980 that the establisher Chunxian
Chen is a researcher of Chinese Academy who was coming back from Silicon
Valley. With the support of Chinese Academy and Central Government, more and
more scientists started up in Zhongguancun High-tech Zone.
With the graduation of students from universities and overseas, more and more
people start their own enterprises; this grows up an effective technology circle.
And foreign enterprises start to distribute in Zhongguancun High-tech Zone.
Zhongguancun High-tech Zone as a case study can fully perform the
38
characteristics of Chinese-style High-tech Zone and generalize the situation of
High-tech Zone.
Based on the website 38 of Zhongguancun High-tech Zone established by
government, it can be collected information about the general condition of
Zhongguancun High-tech Zone, the information of the main enterprises and
industries, economic indicators of the governmental reports, the policies and
regulations for Zhongguancun High-tech Zone, the potential projects to
encourage the entrepreneurs and skill labors to join-in and some of the good
projects are designed for the enterprises.
A big supply market with labor resources Zhongguancun High-tech zone
occupied the total area of 232.52 square kilometers from the statistics data of 2009.
In the zone, there are 82 universities and colleges, about 270 research institutes,
nearly 500 thousand technology workers, as well as 575 thousand students
enrolled in universities and college, 14.86% of the total Master graduates and
25.82% of the total PhD graduates, all being training from here. 39
It is one of highest intensity area with intellectual resources of China. It helps to
well use the advantage of intellectual resources to achieve more high-tech
outcome for Zhongguancun High-tech zone. “Mobility of people also plays a
critical role, where scientists and industry experts wear many hats, and career
paths show great flexibility.”40
Zhongguancun High-tech zone has the unique advantages, located in the capital of
China Beijing, well famous as the electronic street. It seizes the opportunities of
new industries to create a precedent for high-tech industrialization and become the
ancestor of all kinds of high-tech zones.
It becomes the most important base of technological economic innovation to
imply the knowledge-based economy. Beijing has dozens of colleges and
universities and hundreds of research institutes. There are a number of science and
education centers in the surrounding area of Beijing, such as Chinese Academy of
Science, Beijing University, Tsinghua University, Beijing University of
Aeronautics and Astronautics, Beijing University of Science and Technology,
Beijing Institute of Technology, Beijing Institutes of Posts and
Telecommunications, etc. Zhongguancun High-tech zone accesses the knowledge
and technology nearby in order to promote industrialization.
38
39
40
http://www.zgc.gov.cn
op. cit.
Porter, M. E. (1998) On Competition. Boston: HBS Press.
39
4.5 R&D and Innovation
By the observation of Zhongguancun Innovation Index41, it can help to understand
the situation of the innovation activities and the R&D development. Since the
reforming and opening of China, the high-tech industry in Beijing representative
as Zhongguancun high-tech zone has made a remarkable achievement.
"Zhongguancun" has become a “brand” of high-tech industries in Beijing and it
even had a major impact to the whole country. The Beijing Municipal Bureau of
Statistics firstly released the statistics data of Zhongguancun Innovation Index to
public in January 2005, with data starting from the beginning of Year 2004.
Zhongguancun innovation index is compiled by the Beijing Municipal Bureau of
Statistics. It has the main purpose to illustrate the development of high-tech
industries in Beijing and evaluate the overall level of development of Beijing
high-tech industries. Zhongguancun innovation index consist the structure of five
sub-indexes, as economic growth index, economic benefit index, index of
technological innovation, human capital index and the enterprise development
index. The different indexes are composited by three indicators, as a total of 15
indicators.
The Zhongguancun Innovation Index include: all high-tech enterprises in Haidian
Park, Fengtai Park, Changping Park, Electronic City Science and Technology
Park, Yizhuang Park, and Desheng Park, etc. The number of enterprises in the
Zhongguancun High-tech zone account for 90% of high-tech enterprises of the
city.
The Zhongguancun Innovation Index uses to analyze the main factors effecting
the development of high-tech industries in Beijing. The total change in the
socio-economic phenomenon is caused by the changes of the various formed
components. By analyzing the changes of the five categories of indices, it can find
the main factors impacting the development of Beijing Zhongguancun High-tech
zone and the whole high-tech industry. It can still monitor the development and
changes of different areas.
Zhongguancun innovation index concerns in 11 fields, focusing monitoring on the
mainly six domains, namely, electronics and information, bioengineering and new
medicine, new materials and application technology, advanced manufacturing
technology, new energy and high-efficiency energy technologies, environmental
protection technology. Zhongguancun innovation index can dynamically monitor
the situation in the changes of high-tech industrial structure in different areas.
Under the background of the negative effect of crisis spreading to the whole
world in 2008, the macroeconomic situation has changed in the international
41
Beijing Municipal Bureau of Statistics (2009) Zhongguancun Index 2009
40
crisis and the international economy continues to slow growth with a weak
recovery. By the impact of the slowdown of the global economic growth, a
cyclical downturn pressure on economic growth is observed obviously in China.
In the second half of Year 2008, the impact of the domestic and international
macroeconomic situation of the park gradually emerged. In this context, the
Zhongguancun High-tech zone failed to maintain the rapid growth in recent
years.
There are different approaches and methods used for the economic measurement
of innovation. And they all have the advantages and disadvantages, which will
be discussed first as mainly three types of innovation input, innovation output
and innovation collaboration.
The indicators of measuring innovation arise in 1950s and 1960s which R&D
expenditure can be considered as the main indictor of innovation in USA and
European countries. Kenneth Arrow remarked the “traditional indicators” many
years ago, “Too much energy has gone into squeezing the last bit of juice out of
old data collected for different purposes relative to the design of new types of data.”
And Zvi Griliches agreed “far too little fresh economic data is collected” in 1987.
And R&D expenditure is easily measured existing high relation with the
technology output until OECD published the Science & Technology (S&T)
Indicators in 1970.
There are new survey-based indicators developed as the most development,
especially the Community Innovation Survey (CIS). An important development
has been the emergence of new indicators of innovation inputs and outputs,
including economy-wide measures that have some degree of international
comparability.
“Innovation involves multidimensional novelty in aspects of learning or
knowledge organization that are difficult to measure or intrinsically
non-measureable.”42 Therefore, the innovation indicators concern different types
of measurement. All S&T indicators, R&D in particular, have been most
explicitly addressed in the development of direct innovation indicators.
Based on Frascati Manuals in OECD’s innovation manual, the fundamental
indicators of measuring innovation include two types: the resources investing in
R&D and patent data. But it still has some limitations: investments on R&D
activities can help to change technology, but it is hard to measure the degree of
technology changing; and innovation can conclude more efforts than R&D on
firm level that there are more factors influencing on technology changing, for
42
Keith Smith (2005) Measuring Innovation. Fagerberg, J., Mowery, D.C. and Nelson, R.R. (eds) (2005),
The Oxford Handbook of Innovation. New York: Oxford University Press. 2005
41
example, “learning by doing”.
The main indicators use in STI analysis: R&D data; data on patent applications,
grants and citations; biometric data. The other additional indicators are
technometric indicators; synthetic indicators developed for scoreboard purposes
mainly by consultants; and databases on specific topics developed as research
tools by individuals or groups. R&D data is always constrained as an innovation
indicator by the fact that it measures an input only.
One of the two main approaches to measure the technical activities is traditional
Input-output Approach, to consider the technical activities as the process between
input and output. This approach uses the relation of input and output to analyze
the technology level or the productivities. Another approach is Utilization and
impact approach which can use the indicators to analyze the technical activities
effecting on economy and society.
And the main indicators for measurement are input indicators and output
indicators. The input indicators can illustrate the degree of R&D input, for
example, R&D investment and the number of R&D labor force. The output
indicators mainly measure the technology output, including patent, the number of
scientific papers and the technology trade volume.
The traditional technical indicators widely uses, but there still has the limitations
of measuring innovation. Patent can be considered as the most approximate
measurement indicators of innovation. And another important reason is that many
innovation activities cannot commercialize or introduce into market.
The new S&T indicators include the number of patent applications, S&T papers
catalogued by SCI (Science Citation Index)/ ISIP (Index to Scientific and
Technical Proceedings)/ EI (Engineering Index), exports of high-tech products
and share in total exports, etc.
The statistical experts of OECD Economic Analysis and Statistics Division (EAS)
introduced the indicators and the research outcomes on the "knowledge-based
economy". In the research of the indicators of the knowledge economy, OECD's
work can be divided into six parts43: 1.R & D and Innovation: knowledge creation
and diffusion; 2. S & T human resources: knowledge and skills; 3. Patent:
Protecting and commercializing the knowledge; 4. Information and
communication technology: the thrusters of knowledge-based society; 5.
Knowledge flows and global enterprises; 6. Effect on production activities by
knowledge.
43
Distribution, G. (1996) The knowledge-based economy. OECD Announced.
42
Today, the world uses a large number of indicators to measure the development of
science and technology at different levels. Science and technology indicators can
provide a true and reliable reflection on different aspects of scientific and
technological development of a particular country, and thus it evolved into the
most important concerning question of government policy. Indicators can reflect
the scientific and technological capabilities and scientific and technological
activities.
From an international point of view, the dominant method measuring science and
technology statistical indicators has a global foreground. But it plays a more
important role to be used as the foundation of formulating science and technology
policy and management of a country, because it can be the principle to compare
with other countries’ capabilities.
Indicators about resources and institutional capacity for science and technology
Science and technology research and development reflect the ability of a country
to generate scientific and technological knowledge and a key area of S&T
statistical measurement. Scientific and technological research and development
statistics mainly focused on measuring the financial resources and human
resources and research institutions infrastructure. Whether in national or
international level, the networking of personnel and institutions is an important
factor of research and development succeed.
- Basic research / applied research / experimental development;
- Sectors: universities, government, business, non-profit institutions;
- Based on scientific fields; industry; socio-economic objectives; funding sources;
full-time, part-time, equivalent to full-time, and so on.
Indicators about outputs
Knowledge: In the past 20 years, all governments often require the assessments of
research activities. So in recent years, a variety of indicators appeared to measure
the output of scientific and technological activities, in particular the number of
publications and patents.
Technology dissemination and application: Economic growth increasingly
depends on the continuous generation of new technologies and the use of new
technologies.
Indicators about influences
Development: The activities of government-funded R&D play a positive role in
43
promoting S&T on development of economic, social, and other areas.
Technological culture: To have a positive cultural environment of science and
technology is important as well.
By back observing the development of innovation in Zhongguancun High-tech
zone, it can be analyzed from the economic measurement of innovation.
Taken the example of year 200844, the innovation activity can be measured and
observed. Innovation activity is still active in the zone. In the first three quarter of
2008, the innovation activities in the zone are still very active. The input,
collaboration, and output of innovation increase with high-growth rate. Since
September 2008, the impact to innovation activities of the crisis began to appear,
the number of innovators and the growth of innovative revenue both decline in
this period. Overall, the innovation activities of Year 2008 are still active, the
innovation output and innovation in collaboration both rapid growth, the
innovation capability further enhance with the emergence of new products and
new technologies, making contribution in many big projects of the country.
Zhongguancun Innovation Index reaches to 267.35 in Year 2008, which is 24.54
points higher than the previous year 2007. By observing the trend of developing
Zhongguancun Innovation Index in the period from 2004 to 2008, the growth rate
of the innovation index remains lower, because of the weakening of innovation
input.
Zhongguancun Innovation Index in 2004-2008
300,00
250,00
200,00
150,00
100,00
50,00
0,00
200
4
200
5
200
6
200
7
200
8
innovation index 100,00
121,86
177,04
242,81
267,35
growth rate
21,9%
45,3%
37,2%
10,1%
50,0%
45,0%
40,0%
35,0%
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
Figure 10 Zhongguancun Innovation Index in 2004-2008 by Beijing Municipal Bureau of Statistics
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
44
The following part mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Zhongguancun
Index 2009.
44
With the analysis the structural contribution of the innovation index by the Bureau
of Statistics of Beijing, the innovation output has the greatest contribution at 80.3%
on the innovation index, which push the innovation index growing 19.7 points.
The second biggest contribution to the innovation index is innovation cooperation,
which reaches at the rate of 41.3% and pulling the growth of 10.1 point.
Compared with these two parts make the positive contribution on innovation
index, the innovation input pulls the innovation index falling 5.3 points.
Innovation input
By compare the changes of the trend between innovation index and innovation
input, it can be seen that the innovation index of Zhongguancun High-tech zone
is 186.85 points in the year of 2008, which is the first-time decline since 2004.
The reason to explain can be considered as the crash of the crisis appearing
obviously in September which makes the innovation activities lag-off and some
enterprises even reduce the innovators and fund input.
Innovation input & Inovation index
innovation index
innovation input
200,50
186,85
152,16
114,27
100,00
242,81
267,35
177,04
100,00
2004
121,86
2005
2006
2007
2008
Figure 11 Zhongguancun Innovation input index by Beijing Municipal Bureau of Statistics
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
Based on the statistics report in 2009 by Beijing Municipal Bureau of Statistics,
the detail indicators and data about R&D can be viewed clearly.45 First, the scale
and proportion of innovators both show a decreasing trend. The number of the
staffs engaging the S&T activities appears a drop for the first time, but the
45
The following part mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Beijing
Statistics Yearbook 2009.
45
decrease is not significant. The number of staffs engaging the S&T activities was
0.32 million in 2008, with a decrease of 0.02 million. The employees of Science
and technology activities account for 34.1% of the employees of the whole zone,
falling down 3.7 percentages compared with the previous year. In the six priority
areas, the electronics and information technology fields have the largest number
of employees decreased. By viewing according to the size, the large enterprise
has a stable growth on employees engaging technological activities, but the
small and medium enterprises have significant negative growth on that.
The fund input of innovation has a slight decline. The expenditure of the zone
reached at 55.79 billion RMB, slightly decreased 180 million RMB under the
previous year. The expenditure of R & D reached 32.45 billion RMB, falling 810
million RMB than the previous year. The indicators showed the first decline
since 2000 on the perspective of observing the whole year data, although the
data of R&D expenditure during January to November of 2008 showed the
growth amount about 11 percentages compared with the period from January to
August in the previous year 2007.
In 2008, R & D intensity (R & D expenses / total revenue) in Zhongguancun is
3.2%, as 0.5 percentages lower than the previous year. It is the two consecutive
years with the substantial decline since 2007. Among them, the R&D intensity of
the software industry is 7.9% as the first ranking of the key industries in the zone,
but still fell 1.8 percentages than the previous year.
The tax relief of technology development has a big shock in 2008. The tax relief
of technology development had a sharply drop after a shapely increase, which
changes from 3.64 billion RMB in 2007 rapidly fell to 770 million RMB, with
the decline rate up to 78.7%. The tax relief of technology development on six
areas has decreased in the varying degrees, of which the advanced
manufacturing industry has the largest amount declined, reaching at 1.27 billion
RMB, falling down 93.5% compared with the same time of the precious year.
Innovation output46
The enterprises in the Zhongguancun High-tech zone obtain a large number of
technological and innovative outcomes in several industry fields of new energy
and environmental protection, bio-medicine, software and information services,
integrated circuits, communications and computer networking. The capabilities
created patent standards also significantly enhanced and made a great
contribution on a lot of major tasks. The invention patents and new product sales
revenue achieve different levels of growth in 2008, continued driving innovation
46
The following part mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Zhongguancun
Index 2009.
46
output rapid growth 44.47 points. The Zhongguancun innovation output index
reaches 322.87 in 2008.
Innovation output & Inovation
index
innovation index
innovation output
278,4
322,87
192,84
100
100,00
2004
124,52
121,86
2005
177,04
2006
242,81
2007
267,35
2008
Figure 12 Zhongguancun Innovation output index
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
There is some significant growth in patent applications. In 2008, the patent
application in Zhongguancun High-tech zone companies a total amount of
16,547 patents, as the growth rate of 137.5 percent. It accounts for 38% share of
the shares in the whole of Beijing, equally accounting for 2% of the total
proportion of the country and twice over the previous year 2007. The patent
application each 100 thousand person reached 165 applications, 113.7 percent
upper than the same time of previous year. The innovation capability greatly
increased, as 8 times of the average in Beijing.
From the perspective of patent licensing, the number of patent licensing reaches
4305 cases obtained by the enterprises of Zhongguancun High-tech zone in 2008,
accounting for 24.3% of the cases in Beijing, accounting for 4.3% of the cases of
the country. The invention and patent account for 1834 cases, 67.8% upper than
the previous year, which occupies as 42.6% of total authority in the zone, with
the weight increasing of 9.5 percentages than the previous year.
47
Patent application
utility design
4%
model
18%
Licensing
design
11%
patent
78%
utility
model
46%
patent
43%
Figure 13 The distribution of patent application and Licensing in the zone in 2008
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
The number of copyright registration in 2008 is slightly lower than the number
of items of copyright registration in the previous year. The number of copyright
registration in 2008 is 6062 cases, a decreasing number of 102 cases than last
year. Among these, the software registration reaches 4845 cases, 17.9%
downward than the same period of last year. However, the copyright transaction
of the zone in 2008 achieved the amount of 0.34 million RMB, with an increase
of 123.3% than last year. The transaction revenue of copyright registration in the
industries of computers and related products and software accounted for 98.6%
of the total copyright transactions. In 2008, the cases of software copyright are
11327 cases in the leading position of the whole country.
There is still a slight increase of new product sales increased slightly. The sales
revenue of new products is 332.7 billion RMB in 2008, 10.61 billion RMB
upper than the year 2007. In the context of the crisis, the industries of new
energy and environmental protection still maintained a high rate of rapid growth
at 57.5% and 23.2% respectively, which represents the direction of the future of
Zhongguancun. The sales of new products of electronic information decelerate at
-9.7% compared with 128.6 percent in 2007.
Innovation collaboration47
47
The following part mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Zhongguancun
Index 2009.
48
Innovation cooperation & Inovation index
innovation index
innovation cooperation
306,16
246,51
192,56
132,27
100
100,00
2004
121,86
2005
177,04
2006
242,81
2007
267,35
2008
Figure 14 Zhongguancun Innovation cooperation index
Source: Compiled by the author with the source of Zhongguancun Index 2009. By Beijing
Municipal Bureau of Statistics
In 2008, innovation collaborative efforts further increase in Zhongguancun. All
the innovation collaborative indicators have different degree of growth, as
technical contract sales, the expenditure of scientific technological activities
commissioned to outsourcing and the number of enterprises participating in
industry technology alliance, driving innovation collaboration index increased to
300.16. Since 2004, the expenditure of scientific technological activities
commissioned to outsourcing continuously increased to 4.57 billion RMB, which
is upper 30.9% than the year 2007.
The number of Zhongguancun Industry Alliances in 2008 reaches to 30, such as
the IGRS, TD-SCDMA Industry Alliance, etc. which covered the industries
around software, integrated circuits, communications, Internet, bio-medicine and
environmental protection. The combination of enterprises and research
institutions initially formatted as a new situation of collaborative innovation. In
2008, the number of enterprises participated in industrial alliances reached to
1946, which are 905 more enterprises than last year as an increase rate of 86.9%.
In 2008, the cases of technology transformation of Zhongguancun including
technology development and technology transfer reached 8691 cases, increasing
6.1% than the last year. The technological contract turnover gets the level of 84.8
billion RMB, 23.2% upper than the previous year, equally 82.6% of total share in
Beijing, and 31.8% of China. From the perspective of technical field, the field of
electronic information technology concentrates 54% of total contract turnover.
49
4.6 Networking
The networking feature of the cluster means that the enterprises in the cluster
form a close relationship networking through the connection of universities,
research institution and enterprises. Each body frequently engaged in trade,
communication and interaction, learning and cooperation, through the various
formal or informal relationships to jointly promote sustainable development of
the cluster.
The characteristic of networking mainly represents on networking specialization,
networking of interactive cooperation, innovation networking and the
embeddedness of networking. The promotion of establishing complete
networking brings the advantages of reducing the cost of information acquiring
and transaction cost, increasing the trusts, connection, and mobility of
information and knowledge, especially for the tacit knowledge, and improving
the technical innovative advantages.
The main suppliers of technology and innovation are research institutions and
universities in China. The suppliers hold very strong technical competence, with
the effects of technical dependence, the networking and regional innovation
networking still need to complete which will improve the R&D development and
the motivation of technical innovation.
By analyzing the index of the scope of the participation of the science activities
of Zhongguancun, it will be much easier to understand the networking,
especially for the relationship among the universities, research institutions and
enterprises. For example, it can be viewed the quantity of projects represented
the relationship, the expenditure and the proportion of personnel and institutions
effect in the technical projects. To acknowledge the share the exchange of labor
resources, capital and funds among universities, research institutions and
enterprises still helps to understand the networking.
Until the beginning of year 2008, there are more than seventy international
research and development institutions located in Zhongguancun. Until the
middle of year 2010, it has 19 national laboratories, and eight of that located in
Zhongguancun.48
To analyze the linkage of universities, research institutions and enterprises, it
needs to acknowledge the science activities of enterprises and research
institutions in Zhongguancun, and universities in Beijing, especially for the
linkage of the activities.
The Ministry of Science and Technology of the People’s Republic of China (2003-2008) The database of
major Science and Technology indicators
48
50
Science Activities of enterprises in Zhongguancun49
SCIENCE ACTIVITIES OF ENTERPRISES IN ZHONGGUANCUN
Item
2008
2009
Statistics on science and technology activities
(person)
Total of Personnel Engaged in Science and Technology
320958
321717
Full-time
178433
234078
R&D Personnel
174797
136203
55.79
56.995
51.22
50.904
4.57
6.092
Total Expenditures for Science and Technology Activities
(billion yuan)
Inside Organizations
Expenditures for science activities conducted by external
institutes entrusted
Payment to Domestic Research Institutes
3.472
1.2
Payment to the universities
Other Corporations
0.248
2.96
/
All Scientific Research Projects in the year
Number of All Scientific Research Projects
(unit)
Total Participated institutions
(unit)
46812
46685
1479
/
Total Interior Expenditure for All Scientific Research Projects
(billion yuan)
42.82
43.883
Table 10 The science activities of enterprises in Zhongguancun represented the
cooperation of the universities, research institutions and enterprises in the years of 2008
and 2009.
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
Total Expenditures for Science and Technology
0,44%
4,16%
89,31%
10,69%
6,09%
Inside Organizations
Payment to Domestic Research Institutes
Payment to the universities
Other Corporations
Figure 1511 Total Expenditures for Science and Technology in 2009
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
49
The following part mainly uses the data from Beijing Municipal Bureau of Statistics (2009) Beijing
Statistical Yearbook 2009
51
The total expenditures for Science and Technology Activities reached nearly 57
billion Yuan, which nearly 51 billion Yuan in 2009, accounting for 89.31% of total
expenditure. The expenditures for science activities conducted by external
institutions entrusted account for 10.69% of total expenditure, including for 6.09%
on Domestic Research Institutes and 0.44% on universities. All scientific research
projects in enterprises of Zhongguancun reached 46685 units, with total 1479
participated institutions.
Research institutions
Basic statistics of Science and Technology association and subordinate
institutes (2008)
Item
Total
Academic Exchange
Domestic Academic Meeting
(times)
854
(person. times)
111995
(unit)
15949
(times)
62
(person. times)
87822
(unit)
1745
(times)
11
(person. times)
1134
(unit)
147
(unit)
61
(person. times)
485
(unit)
23
Enterprises Accredit Accredit person. time
(person. times)
353
Technological Group of overseas Reception
(unit)
104
(person. times)
1359
(unit)
20
(person. times)
458
(times)
1486
(person. times)
463603
(times)
260
(person. times)
2034057
(unit)
1784
(person.times)
65579
(unit)
650
Participants
Papers Presented
Academic Meeting between China and Foreign Countries
Participants
Papers Presented
Academic Meeting with HongKong, Macao and Taiwan
Participants
Papers Presented
Non-governmental Scientific and Technological Exchange
Technological Group of Accredit Overseas
Accredit person. time
Technological Group of HongKong, Macao and Taiwan
Accredit person .time
Technological Group of HongKong, Macao and Taiwan
Enterprises
Reception Accredit person. time
Scientific Promoting
Lectures
Participants
Exhibitions
Participants
Training Program
Classes
Participants
Consultative Services
Contracts Completed
52
Contracts Revenue
(million yuan)
547.74
Table 3 Basic statistics of Science and Technology association and subordinate institutes (2008)
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
There are many routes represented the scientific activities of the research
institutions, such as academic exchange, Non-governmental Scientific and
Technological Exchange, Scientific Promoting, Training Programs and
Consultative Services.
The scientific activities of the research institutions include the academic exchange
of 854 times domestic academic meetings, 62 times academic meetings between
China and Foreign countries, and 11 times academic meeting with HongKong,
Macao and Taiwan; Non-governmental Scientific and Technological; Scientific
Promoting; Training Programs; and Consultative services. All these routes play
very important role in promoting the linkage among universities, research
institutions and enterprises.
Colleges and Universities
Statistics on Science and Technology activities in colleges and universities
Item
Personnel Engaged in Science and Technology
2008
(person)
Scientist and Engineer
Scientific Research Institutions
Full-time Scientific Research Persons
42315
(unit)
481
(person-year)
26397
Scientist and Engineer
Scientific Research-oriented Expenditure Financing
49853
25928
(million Yuan)
12251.89
Government Appropriate Funds
762062
Corporation
376861
Loads of Banks
Appropriation Intramural Expenditure for Science and Technology
0
(million Yuan)
8590.18
The Appropriation Expenditure for Research and Experimental
(million Yuan)
5568.12
Development
Table 4 Statistics on Science and Technology activities in colleges and universities
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
The colleges and universities have about 481 units of scientific research
institutions, appropriation intramural expenditure 8590.18 million Yuan and the
appropriation expenditure for research and experimental development about
5568.12 million Yuan.
The condition of technical transfer and technical cooperation still contribute in
the formation of networking. In the general study of the technological statistical
53
report by the ministry of Science and Technology of China, the contracts of
technological development, technological transfer, technological consultation
and technological service, the turnover of the technological development
contracts was the biggest share of turnover about 107.55 billion Yuan in
2008.50 The technological development on the cooperation across universities,
research institutions and enterprises obvious increase, reached as the amount of
99 billion Yuan, accounting for 92.1% of the turnover of technological
development contract and 37.1% of the total amount of National transactions.
Statistics on Science and Technology-Oriented activities of medium and
large-sized industrial enterprises
2008
Item
Number of Enterprises
(unit)
650
Enterprises with R&D Activities
(unit)
258
Enterprises with Science & Technology Activities
(unit)
197
Enterprises with New Product Development
(unit)
284
Personnel Engaged in Science and Technology
(person)
55976
(person)
39962
Scientist and Engineer
Scientific Research Persons
33231
Science Research-oriented and Expenditure Financing
(million Yuan)
14704.11
Total Appropriation Expenditure on
(million Yuan)
14946.25
Science & Technology Activities
Appropriation Expenditure on R&D
709677
Appropriation Expenditure on New Product
700421
Science & Technology Projects
New Product Development Projects
(unit)
3333
2332
R&D Projects
2462
Table 5 Statistics on Science and Technology-Oriented activities of medium and large-sized
industrial enterprises
Source: Compiled by the author with the source of Beijing Statistical Yearbook 2009 by
Beijing Municipal Bureau of Statistics
And in 2008, there are a total of 26000 all levels of governmental science and
technology projects through the technological transfer and conversion in the
technology market with the turnover of 48.83 billion Yuan, accounting for 11.6%
of the total number of items traded and 18.3% of the total turnover, respectively.
863 projects are the national planned high-tech research and development projects
of China. The 863 projects as national projects based on the fundamental
researches established in the year 1986, dominating by the government, aiming on
50
The following part mainly uses the data from The Ministry of Science and Technology of the
People’s Republic of China (2003-2008)
The database of major Science and Technology indicators
The Science and Technology statistics data of China
The data of High-tech industries of China
54
some specific fields, such as Biotechnology, space technology, information
technology, laser technology, automation technology, energy technology, new
materials in 1986 and marine technology in 1996. These projects lead by the
government and still encourage the coordination of enterprises.
973 projects were started in the year of 1997 by Chinese Science and Technology
leading group in order to improve the original innovation, and solve the major
scientific problems in the development of national economic and social
development in at a deeper and broader level. The 973 projects aim to strengthen
the basic research on national strategic goal, as the sustainable development
strategies, mainly responded by China's Ministry of Science and Technology.
The projects of the national support reached the amount of 922 technical support
projects and 1205 units of “863 projects” in the year of 2008. The new formation
of national engineering research centers is seven, and 51 national engineering
labs.
Chinese government supports a lot of national and local-level of projects to
provide the opportunities to make the cooperation among universities, research
institutions and enterprises. The governmental projects include Xinghu plan,
Huoju plan, technical support projects, 863 projects and 973 projects, etc. which
863 projects and 973 projects are most famous nowadays and still on processing.
863 projects and 973 projects announced in the year of 1986 and 1997,
respectively, which can be considered as one of the examples of promoting to
strengthen the linkages of universities, research institutions and enterprises.
The linkages of universities, research institutions and enterprises will be discussed
by the studies of 863 projects and 973 projects as the main observation objects.
With gradually improving the technological innovation system of Zhongguancun
high-tech zone, the linkages across universities, research institutions and
enterprises are improved as well. Tsinghua Science Park performed as one of the
representatives of the university technology park, which acted as the
agglomeration area efficiently combined with the linkages across universities,
research institutions and enterprises. A number of new national core labs, national
engineering research and development centers, technological incubators and
public technological support platforms are established. There are 65 units of
multinational R&D centers into the parks. There are many new forms to represent
the linkages across universities, research institutions and enterprises, as
co-established the technical alliances and industrial alliances among the high-tech
enterprises, established R&D institutions with Multinational enterprises and
cooperated on activities of R&D with universities and research institutions.
55
The methods of the cooperation across universities, research institutions and
enterprises are including: first, the enterprises dominating, the universities and
research institutions coordinating to do the R&D; second, the research
institutions and universities leading R&D, the industrial sectors coordinating;
third, governmental sectors organizing implementation make the cooperation of
universities, research institutions and enterprises come true.
973 projects and 863 projects both follow the first two methods to achieve the
cooperation from the linkages of universities, research institutions and
enterprises.
Zhongguancun High-tech zone still made a significant contribution on developing
technological improvement. In the year of 2008, Zhongguancun assumed the 25%
of total amount of "863 projects" of China and 36% of the total "973 projects" of
China, while it still actively undertook the national and Beijing’s major
technological innovation projects in information, biology, aerospace, new
materials, energy, environmental protection and agricultural fields, leading to
attract more national projects settled in Zhongguancun. It is still planed, to the end
of year 2010. Zhongguancun will take about 40% of the 863 projects and the 973
projects with constructed by the enterprises, research institutions and universities.
With the study of central financial capital investments of technological projects,
the central financial capital investments of technological projects steadily
increased by the observing the data of the period from year 2003 to 2008 (Table 6).
The financial investment on the 863 projects reached 3.80 billion Yuan, with the
1.35 billion Yuan on 973 projects in year 2006, which the total central planned
financial capital investment reached 15.22 billion Yuan on the same year. But as
the long time of implementing 863 projects, it doesn’t invest so often as every year
nowadays. Compared to this, 973 projects act as a recent project implemented
from year 1997, which still invests a lot of money every year. From Figure 16, the
changes of the investments on 973 projects and the proportion of investments on
973 projects out of the total investments on the technological projects can be
viewed.
Indicators
Unit
863 projects
10000 yuan
379501
%
24.94%
% share of investment of
863 projects
973 projects
% share of investment of
973 projects
Total central planned
financial capital investments
2003
2004
2005
2006
2007
2008
80000
89700
98297
135419
164581
190000
%
11.45%
11.62%
11.49%
8.90%
9.59%
10.27%
10000 yuan
698666
771665
855424
1521790
1716261
1849292
10000 yuan
56
Table 6 Central financial capital investments of technological projects from 2003 to 2008
Source: Compiled by the author with the source of the database of major Science and
Technology indicators, the Science and Technology statistics data of China and the data of
High-tech industries of China by the Ministry of Science and Technology of the People’s
Republic of China
By compared the indicators of the outcome of the 863 projects and 973 projects, it
can be acknowledged that in 2008, the trained Phds and graduates reached 18737
and 14861, respectively, gradually increased than the number in 2007. The
number of applying patent of 963 projects and 973 projects are 10570 units and
3229 units, respectively.
Central financial capital investments of technological projects
2000000
25,00%
1800000
1600000
863 projects
20,00%
1400000
1200000
15,00%
973 projects
1000000
800000
10,00%
Total central planned
financial capital investment
5,00%
% share of investment of
863 projects
0,00%
% share of investment of
973 projects
600000
400000
200000
0
2003
2004
2005
2006
2007
2008
Figure 12 Central financial capital investments of technological projects
Source: Compiled by the author with the source of the database of major Science and
Technology indicators, the Science and Technology statistics data of China and the data of
High-tech industries of China by the Ministry of Science and Technology of the People’s
Republic of China
Indicators
Unit
Trained Phds and graduates
person
Attracted oversea students
person
Employed the foreign experts
person
Patent application
unit
Invention patent
unit
Granted patent
unit
Papers publication
paper
Overseas publication papers
paper
Publishing technological books
10000
characters
2003
2004
2005
2006
2007
2008
11159
3435
440
6300
5039
1249
26832
6699
12561
3155
476
7271
5627
2173
29467
7590
17037
3393
438
10187
8055
3106
34462
9830
2795
534
129
2025
1487
560
5581
1414
8099
2073
312
4721
3801
1108
15697
6179
18737
3613
354
10570
8785
2583
36505
14642
11764
13618
12938
2581
5252
13910
57
Making new products, new
materials, new techniques and
unit
3699
3455
4521
820
1317
2891
unit.time
997
2009
2335
542
206
939
new equipments
Outcome transfer
Table 13 The outcome and output of 863 projects
Source: Compiled by the author with the source of the database of major Science and
Technology indicators, the Science and Technology statistics data of China and the data of
High-tech industries of China by the Ministry of Science and Technology of the People’s
Republic of China
Indicators
Unit
Trained Phds and graduates
person
Attracted oversea students
person
Employed the foreign experts
person
Patent application
unit
Invention patent
unit
Granted patern
unit
Papers publication
paper
Overseas publication papers
paper
Publishing technological books
10000
characters
2003
2004
2005
2006
2007
2008
6142
1159
95
819
721
390
18837
7627
6589
1435
145
942
862
514
19513
7443
6220
1393
134
1062
832
444
16210
7914
6500
1192
110
1358
1245
393
17223
8622
11822
2835
190
2588
2417
869
26647
15395
14861
3134
272
3229
3031
1117
34081
20064
6971
4776
4185
3438
8873
8497
Table 14 The outcome and the output of 973 projects
Source: Compiled by the author with the source of the database of major Science and
Technology indicators, the Science and Technology statistics data of China and the data of
High-tech industries of China by the Ministry of Science and Technology of the People’s
Republic of China
In Zhongguancun, in the period of 1996 to 2000, the cooperation projects of the
linkages across universities, research institutions and enterprises reached 2399
units, accounting to 12.4% of the total projects. In the period of 2001 to 2005,
the national technology projects paid much attention on the establishment of the
projects. In the end of that period, the cooperation projects across universities,
research institutions and enterprises reached 6590 units, and the proportion out
of the total projects reached to 21.9%. In the period of year 2006 to 2008, the
projects across universities, research institutions and enterprises are 5458 units,
with a share of 20.4%. With the developing in the two years, the projects will
continue to growth.
863 projects act as one of the most important projects implemented in the history
of promoting Chinese technological projects. In the period of year 2001 to 2005,
the linkages of universities, research institutions and enterprises in 863 projects
still occupied a much more share than other projects, with 2098 units,
accounting for 34.3%. From 2006 to 2008, these cooperation projects reached
1563 units, accounting for 25.3% of the total amount. As the main aim of
scientific research and exploration, 973 projects have the proportion of 0.5% in
1996 to 2000, continuously increasing to 9.8% in the period of 2006 to 2008.
58
The research institutions and universities perform as the main implementation
bodies in 973 projects and 863 projects. More than a half of the cooperation
belongs to the projects with dominating by research institutions and universities,
enterprises coordinating, accounting for 54.5% and 57.2%, respectively. The
projects of enterprises leading, research institutions and universities coordinating
in the 973 projects and 863 projects account for 43.2% and 40.8%, respectively.
By studying all the previous data and figures, the networking and linkages of
universities, research institutions and enterprises can be initially acknowledged.
But to clear study the networking of Zhongguancun still needs to take a long
time and spend more on the topic.
4.7 Comparison with Silicon Valley
Innovation resources and innovation efficiency
As the human-based economy, the human capital (intellectual resources) plays a
very important role in the various production factors of the high-tech industry. It
is an important advantage as large number of professional talent aggregation on
developing high-tech industries.
Zhongguancun Industrial cluster is one of the typical representatives as the
industrial cluster of deriving from the S&T Resource, as the most intensity area
with education and R&D resources, which has a sum of 68 universities, as
Tsinghua University, Beijing University and other institutions colleges, 270
research institutions represented by Chinese Academy of Sciences, 51 State-Key
Laboratories, accounting for 28% of the whole state; 22 National Engineering
research centers, accounting for 22% of the whole state; 20 National Engineering
technical Research Centers, accounting for 19.8%; 13 National enterprise
technical centers; 11 national professional bases; and 65 R & D centers set up by
international enterprises. Each year the area dispatches 20000 graduates and 4000
post-graduates into the Chinese economy. More than one-third of the 80000
scientists and engineers hold associate professor positions or higher in
Zhongguancun zone.
But the intellectual resources still has some weakness compared with Silicon
Valley. Although Zhongguancun attracts a lot of talents overseas as the
“Argonauts”51, which AnnaLee Saxenian mentioned, it still holds the main body
of talents as Chinese with a high limitation on specialized on technical field.
Silicon Valley performs as a good example attracting different fields of talents
with various nationalities. The characteristics of multi-ethnic, variety cultural
51
Saxenian A. (2006) The New Argonauts: Regional Advantage in the Global Economy Harvard University Press
59
background and special talent structure are obvious to observe.
It is very interesting to view the population structure based on different
nationalities and age with education background. According to the recent census
in 2006, Silicon Valley has a population of nearly 2.5 million, more than a third
people were born out of US. It is more than a half population at the age between
20 to 45 years old, and 48% white, Asian and Hispanic 24%, respectively, in
Silicon Valley. 43% of adults over 25 years old have bachelor degree. The
agglomeration of variety ethnic groups and the diversity of cultural life bring a
boom to Silicon Valley.
Another big gap between Zhongguancun and Silicon Valley is on innovation
efficiency, represented as the intensity of R&D. In 2009, the total input of
technical activities reaches about 60.72 billion RMB Yuan. In 2008,
Zhongguancun R & D intensity (R & D expenses / total revenue) is only 3.2%.
The expenditure of R&D grows too slow, with a lack of famous products with a
high share on the international market. It lacks by less core technology and the
applications of patents still not much, although the situation has been approved
for the couple of years, the gap between Silicon Valley and Zhongguancun is still
very big.
The relations among Universities, research institutions and enterprises
There has a wide range of relations among universities, research institutions and
enterprises in Silicon Valley. The existence of industrial cooperation programs
and the honor cooperation programs promote the interactive innovation become
true. The universities in Silicon Valley encourage the communication with the
enterprises and the entrepreneurial firms establishes by teachers and students.
Nearly two third of output in Silicon Valley was contributed by the enterprises
with the relationship with Stanford University, such as the entrepreneurial firms
established by the teachers, students and graduates in Stanford University. In
return, the enterprises still provide the fund to support the research and
development of universities. The teaching, research and production coordinate
developing, which the universities and production promote and rely on each
other. Although there is a very close relationship among the Stanford University,
UC Berkeley and the enterprises in Silicon Valley, these universities neither
hold their own enterprises, nor force the scholars to become the entrepreneurs.
The main responsibility of the universities is to educate and provide technology,
which means that the concept of "school-run enterprises" does not exist in
Silicon Valley.
Back to view Zhongguancun, it still further forms the interactive relationship
among universities, research institutions and enterprises. With the different
60
subordination to the different department of Beijing city and central ministries,
the communication, cooperation and combination are hard to be achieved,
especially for the resources between Beijing city and central ministries. And the
innovation is hard to be commercialized. Although the research institutions and
the universities can provide technical outcome, the conversion of the technical
outcome is still very low. So how to allocate the resources of factors as labor,
technology and capital still is a big puzzle to the scholars and policymakers.
The enterprises of Silicon Valley still pay attention on the networking of
industries and the society. The effects of knowledge spillover make keeping the
knowledge secret difficult. The interactive learning and cooperation promote the
knowledge and technology spreading over the agglomeration. Many associations
still play very important role in Silicon Valley. Compared to this, Zhongguancun
has not yet form the networking between different actors. The cooperation of
enterprises is still processing, the innovative milieu and the relationship between
different types of enterprises still needs to be strengthened.
The institutes of venture capital investment
Compared on the perspective of venture capital investment and financial system,
there is still a big gap between Zhongguancun and Silicon Valley, particularly on
the venture capital investment mechanism supporting high-tech industry. The
venture capital of Silicon Valley has experienced more than 30 years occupied a
half share of total venture in US, reached annual venture investment about 10
billion US Dollar. The amount of venture capital in Silicon Valley has achieved
the annual growth of 300% two decades ago. In the end of 20th century, the
venture capital of Silicon Valley reached 13 billion US Dollar in Year 1999,
occupied one third of total venture investment of US, one sixth of global venture
investment, and the most interesting is more than 90% venture capital coming
from privates. The venture capital provides a safeguard for the innovation
activities and the entrepreneurship in Silicon Valley. The venture capital
enterprises do not only provide the venture funds, but also provide services and
consulting about the technical advisory and knowledge for the high-tech
enterprises.
Recently, the main venture funds concern as high-tech entrepreneurial venture
capital, venture capital promoting technical outcome, funds on patent application,
guarantee funds on high-tech industrial development, guarantee funds for SMEs
in Beijing, guarantee risk funds for Beijing high-tech enterprises, etc. Many funds
were governmental-led, that is hard to achieve the requirement of big amount
technical innovation enterprises on the perspective of quantity, the lack of venture
investment mechanism is still processing. Although Zhongguancun has
established many venture capital investment enterprises, the real venture
investment activities are still not that much. Therefore, to promote the reformation
61
of venture capital and to complete the venture investment mechanism is still very
important for further development of Zhongguancun.
The institutes of firms and management
Silicon Valley possesses sustainable competitive advantages, especially on the
institution and management of enterprises. The advantages mainly reflected in
three aspects: first, it has the characteristics of rapid technological change of
high-tech industry, short product life cycles and high development costs, adapting
the open structure with networking. The form of production organizational
structure effectively reduces the cost of combination with research, manufacturing
and sales. Second, it is to promote the internal incentive mechanism and
innovation of management of enterprises, and to establish the mechanism of stock,
options, joint decision-making and management and sectors of decentralization
and equalization. Third, Silicon Valley established a new relationship of industry
and informal organizational system. Based on this, there exists a combination of
the competition among companies and the cooperation through informal learning
from other enterprises.
Compared with Silicon Valley, Zhongguancun does not exist any mature
enterprise institutions, as the idea of traditional culture and planned economy still
existing, open production networking has not well formed; establishing the
mechanism of stock, options, joint decision-making and management and sectors
of decentralization and equalization only initially imply part of the enterprises. It
is noteworthy that there are many enterprises in Zhongguancun been entangled
property rights issues.
Specialization, division of labor and service system
The specialization, division of labor and service system makes big efforts on
Silicon Valley. In Silicon Valley, large enterprises are breaking up the tasks and
businesses to small enterprises operating, while a large number of small
enterprises are supporting large enterprises. In Silicon Valley, the inventors have
good ideas or new technology, and it easily operates the strategic planning,
production operations, financial management and sales management by all kinds
of professional enterprises to support the high-tech enterprises.
Compared with Silicon Valley, Zhongguancun does not really form specialized
division of labor and social service system. The enterprises usually commercialize
the technology by themselves, which need to be completely independent of
supporting all development processes, such as research and development,
manufacturing, distribution, service and any other aspects. It has many reasons
caused Zhongguancun haven’t completely done the specialization and division of
62
labor, as the lack of transparency of information, low-sufficient business
information, long transmission information time, short-term activities, etc. How
to solute the problem of small enterprises in entrepreneurship is being paid much
attention recently. The trust of cooperation should be well established and
strengthened.
The effects of government activities
In the history of Silicon Valley, the U.S. government did have some effects mainly
on strengthening basic research and educational input, and providing the law and
regulation for the entrepreneurship of high-tech enterprises, but the success of
Silicon Valley is not the outcome of the regulation and the policies of United
States Government.
In the development of Zhongguancun, the important role of government held
further more than Silicon Valley, played a leading role in the perspective of
infrastructure construction, development planning of the zone, industrial training,
preferential policies provided, venture investment in the zone, industrial
development, corporate venture capital, establishing technical incubators and
variety of professional parks, giving high-tech enterprise certification and
recognition awards, etc. It means that Zhongguancun is a typical outcome of
planning and government-led. As the condition of China, the strong governmental
effects are needed in the past years. But in the long term, the role of government
should change fundamentally, which the government should not directly organize
and arrange the high-tech industry, but focus to create the environment suitable for
technical labors and developing innovation activities.
Entrepreneurial culture
Silicon Valley formed a unique culture suitable for developing the high-tech
entrepreneurship, which led the success of Silicon Valley. The American scholar
AnnaLee Saxenian put forwards in her book “Regional Advantage: Culture and
Competition in Silicon Valley and Route 128”52 that just from the technical and
human resources perspective, it is hard to distinguish the strengths and the
weaknesses between Silicon Valley and Route 128. And the most difference
between them is that Silicon Valley has a more suitable mechanism and the
cultural milieu to develop the high-tech enterprises. The innovative and
risk-taking ideas are much popular in Silicon Valley. There are thousands of
entrepreneurs working as the entrepreneurs in Silicon Valley. The culture in
Silicon Valley still emphasizes knowledge sharing, interactive learning and
communicating, particularly active on informal communication. Silicon Valley is
52
Saxenian A.(1994) Regional Advantage: Culture and Competition in Silicon Valley and Route 128.
Harvard University Press
63
still open for the mobility of the human resources.
In recent years, many Argonauts returned overseas back into the entrepreneurship
in Zhongguancun. These talents took the western values and ways of thinking,
with a combination of the traditional culture background. Zhongguancun forms a
unique regional culture special for Zhongguancun. Although those conflicts on
culture, it still needs to hold the learning from Silicon Valley and the culture with
Chinese characteristics, further be promoted and developed.
64
5. Conclusion
The essay mainly uses the approach of cluster through the characteristics of
geographical agglomeration, specialization, quantity, innovation and networking
to analyze the case of Zhongguancun. By the case study of Zhongguancun
high-tech zone, a lot of data, information and historical material were collected to
analyze.
Zhongguancun acts as one of the most representatives with the particular
characteristics of Chinese High-tech zones. Although many researchers and
scholars worked on the study of Zhongguancun and the comparison with Silicon
Valley, the importance to analyze the region is still very obvious from the
perspective of the cluster theory. Zhongguancun High-tech Zone performs as one
of the best imitators learning by the experiences from the model of Silicon Valley.
Zhongguancun High-tech zone firstly called the "Zhongguancun Electronics
Street" originated in the early 1980s in the late 20th century. In 1988, it was
approved by the State Council of China to become the first high-tech park in
China. Zhongguancun Science Park acts as the most concentrated zone with
educational and scientific research resources in Beijing. As the first state-level
high-tech industrial zones in China, the Zhongguancun High-tech zone in Beijing
covers the most intensive areas with the science, technology, intelligence, talent
and resources. Zhongguancun is one of the most intensity area with education and
R&D resources, which has a sum of 68 universities, as Tsinghua University,
Beijing University and other institutions colleges, 270 research institutions
represented by Chinese Academy of Sciences, 51 State-Key Laboratories, 22
National Engineering research centers, 20 National Engineering technical
Research Centers, 13 National enterprise technical centers, 11 national
professional bases; and 65 R & D centers set up by international enterprises.
In recent years, Zhongguancun High-tech zone attracts a large number of overseas
students as the main body of international talents and entrepreneurs, and a large
group of high-tech projects is made from these talents. The overseas students
founded more than 3000 high-tech enterprises as the entrepreneurs in
Zhongguancun, and more than 7000 overseas students have been back and
employed by the high-tech enterprises. The returned Argonauts become one of the
biggest group of creating innovation and development, leading the technological
innovation system gradually improved. The university science park becomes one
of the actors constructed the linkage among universities, research institutions and
enterprises, represented such as Tsinghua Science Park. There are a large number
of new national laboratories, national engineering research centers, technological
incubators and public technical platforms. And the multinational R & D center
65
located in the zone has reached more than 60. The cooperating technical alliances
and industrial alliances within the high-tech enterprises or establishing the R&D
institutions with the multinational corporations, and the joint research and
Research and Development become the most popular methods of technological
innovation.
The comparison with Silicon Valley model still helps to acknowledge the
difference between Zhongguancun high-tech zone and the successful region, such
as Silicon Valley. By comparing the different development of Zhongguancun
zone and Silicon Valley, the aim will be deeply analyzed the different
phenomenon and developing situation of these two High-tech Zones.
But Zhongguancun still has some differences by compared with Silicon Valley.
The policymakers are “too constructive”53, as more on implementing the large
cluster programs, as visible hand. The common conditions of Zhongguancun and
Silicon Valley are that the rich innovative resources, mainly in researches on
informatics products. In other perspective, Zhongguancun still lacks behind
Silicon Valley, that lower innovation efficiency, lower level of specialization,
division of labor and social service system, lower level of the linkage of
universities, research institutions and enterprises, lower level of establishing
innovative milieu.
With the lifecycle theory of cluster, the difference of Zhongguancun and Silicon
Valley can be easily found out. All the lacks can be well explained by the cluster
life cycle. Simply to say is that, the lacks are because Zhongguancun and Silicon
Valley located the different phases of the cluster life cycle.
“An emerging service cluster based on many small firms, competing on the one
hand and cooperating on the other to increase the attractiveness of the region. In
other cases, a cluster is dominated by one or a few large anchor firms.” Silicon
Valley located in the phase of maturity, which it has already got a mix of
advantageous diamond factors, i.e. framework conditions, entrepreneurship,
social capital, strong linkages to international markets, and a portion of good
policy. “Silicon Valley had Varian, Shockley Transistor, HP, Fairchild and Intel,
which have, as a group, spun off hundreds of new firms.”
But Zhongguancun just finished the transformation from the hero phase to the
maturity phase, and it still needs to continue growing. It still lacks on the
networking and venture capital investment. Zhongguancun still needs time to
achieve the level of the development of Silicon Valley. But it is not correct to
simply compare the Silicon Valley and Zhongguancun. Zhongguancun can
Sölvell. Ö.(2009) Clusters. Balancing Evolutionary and Constructive Forces. Second edition, Jan 2009.
ISBN:978-91-974783-3-5
53
66
complete the system and improve the competitive advantages by learning the
successful experiences from Silicon Valley. The analysis of Zhongguancun
applies the theory of cluster, which is no doubt representative of the cluster, but
it still is locating the growing phase. It means that in the long term, it still needs
time to continue developing.
But one of the most important factors leading Zhongguancun successful needed
to be highlighted is the political activities on the regulation and policies. 54 Some
authors argued that the policymakers are still “too constructive”55 as more on
implementing the large cluster programs as visible hand. But there are still some
advantages of the political activities as the visible hand. Based on the study of the
laws and regulations implemented in Zhongguancun, four big types are divided,
such as laws and regulations regarding setting up a FIE, taxation laws and
regulations, regulatory regimes and incentive policies.
Zhongguancun implements a series of laws and regulations concerning
technological financial to promote the rapidly steadily development of high-tech
industry, such as the new formation of the firms, the venture capital investment,
options transfer, etc. It helps the venture financial market regularly developed.
The policies for attracting the high-educated people attract the overseas talents
and the talents over the country into Zhongguancun. The talent agglomeration
makes Zhongguancun become the most intensive area of talents. Zhongguancun
still has the laws and regulations for supporting the technological SMEs
developed. The government still provides a lot of governmental driven projects to
improve the development of the cooperation with the linkages across universities,
research institutions and enterprises. The government still makes the contribution
on improving the basic infrastructure of the zone.
In 1999, the European countries mainly implement the cluster initiatives to
organize make the partners cooperating enterprises, government and research
communities, which promotes the development together. By the regional
management, the local relationship of the industry is promoted, the spin-offs and
the local division of labors are both promoted to improve and growth. The
knowledge spillover still performs well on the exchange of knowledge and
information.56
Above all, the cluster approach of China still needs to deeply discuss. Many
phenomenons arise with blurring the concept of cluster. To improve the regional
and national competitive advantages, it is really necessary to shape the cluster
developing strategies and the upgrading institutions.
54
http://www.zgc.gov.cn/zcfg10/
Sölvell. Ö.(2009) Clusters. Balancing Evolutionary and Constructive Forces. Second edition, Jan 2009.
ISBN:978-91-974783-3-5
56 Wang, J. C.& Wang, J. N. (2007) The theoretical problem of studying Chinese industrial cluster. World
Regional Studies, Vol.16 No.4 89-97
55
67
References
Becattini, G. (1990) The Marshallian industrial district as a socio-economic notion. Versione
corretta di
Beijing Municipal Bureau of Statistics (2009) Beijing Statistical Yearbook 2009
Beijing Municipal Bureau of Statistics (2009) Zhongguancun Index 2009.
Bellandi, M. (1989) The industrial district in Marshall. London: Routkedge Press
Cha. E. (2008). Chinese Silicon Valley and US Silicon Valley. Chinese Market , Vol 07.
Distribution, G. (1996) The knowledge-based economy. OECD Announced.
Hakim.C. (2000). Research Design. Successful Designs for Social and Economic Research.
London: Second Edition.
He. Jianxin. (2000). Silicon Valley,how far is it from us. Asia-Pacific Economic, Vol 02.
Keith Smith (2005) Measuring Innovation. Fagerberg, J., Mowery, D.C. and Nelson, R.R. (eds)
(2005), The Oxford Handbook of Innovation. New York: Oxford University Press. 2005
Krugman, P. (1991) Geography and trade. Cambridge, Massachusetts: MIT Press.
Li. H. (2003). An Economic Analyze about the Zhongguancun Science Park. Chinese Industrial
Economy, Vol 07.
Li. S. (2007). Innovation and development-about the Z-Park investing and financing system.
International Finance ,Vol 85-11.
Marshall, A. (1890/1920) Principles of Economics. 8th ed. (1st ed 1890). London: Macmillan.
Martin R & Sunley P. Deconstructing Clusters: Chaotic Concept or Policy Panacea [J]. Journal of
Economic Geography, 2003,3(1):5—35
Porter, M.E. (1990) The Competitive Advantage of Nations. New York: The Free Press.
Porter, M. E. (1998) On Competition. Boston: HBS Press.
Porter, M. E. (2003) The economic performance of regions. Regional Studies, 37(6,7): 549
Saxenian A.(1994) Regional Advantage: Culture and Competition in Silicon Valley and Route 128.
Harvard University Press
Saxenian A. (2006) The New Argonauts: Regional Advantage in the Global Economy Harvard
University Press
Schmitz, H. (1995) Collective efficiency: Growth path for small-scale industry. Journal of
Development Studies, Vol. 31, Issue 4, 529 - 566
68
Sforzi, F. (1989) The geography of industrial districts in Italy. in E. GOODMAN, J. BAMFORD
and. P. SAYNOR (Eds) Small Firms and Industrial Districts
Sölvell. Ö.(2009) Clusters. Balancing Evolutionary and Constructive Forces. Second edition, Jan
2009. ISBN:978-91-974783-3-5
The Ministry of Science and Technology of the People’s Republic of China (2003-2008)
The database of major Science and Technology indicators
The Science and Technology statistics data of China
The data of High-tech industries of China
Weber, A. (1909/1929) Theory of the location of industries. Chicago: The University of Chicago
Press.
Zhang. K. (2005). The Comparization of Zhongguancun Science Park and Silicon Valley. High
technology and Industrialization , Vol 08.
Zhao. Z.(2008) Industrial cluster: concepts and characteristics
http://www.chinavalue.net/Article/Archive/2008/4/16/109844.html
Zhongguancun Science Park. (n.d.). Retrieved from Zhongguancun Science Park:
http://www.zgc.gov.cn/
http://www.zgc.gov.cn/tjxx/nbsj/2008nsj/59901.htm
http://www.zgc.gov.cn/zcfg10/
http://www.zgc.gov.cn/sfqgk/gyjj/55169.htm
http://www.zgckfsys.com/pmi/openlabinfoadmin/infoshow.jsp?objid=9272a50e7d69427baf0f6e9377f
a994d
69