Govt gives private enterprises help with high-tech research

Thanks to its advantageous geographic location and the hard work of its residents, Zhejiang province has been one of the nation's three most-developed provinces since the 1980s.

Located on the east coast of China, south of Shanghai, Zhejiang is home to the largest number of private enterprise clusters.

Though it has traditionally been a strong province economically, its private enterprises, mainly engaged in low-end manufacturing, have had a difficult time climbing the value chain in the past five years. Because of this, the pace of economic growth in the province has been slower recently than it was five to 10 years ago.

This situation has led people to question whether the province has lost its economic vitality. But according to the local government, Zhejiang's star is far from fading.

Innovation is the key to success, and the officials and businessmen in Zhejiang are fully aware of that.

According to the Annual Report on the Regional Innovation Capability of China 2012, published by Chinese Academy of Science and Technology for Development, Zhejiang ranks second in the country in terms of patent applications last year.

The report also pointed out that Zhejiang is among the top five in China in terms of regional innovation capability and scientific development.

In the first half of this year, companies and individuals in Zhejiang applied for a total of 145,000 patents, an increase of 22.8 percent year-on-year.

Zhejiang Governor Li Qiang said that companies and government agencies at all levels of the province should stick to innovation.

"Innovation, a key driving force of Zhejiang's economic development, is of strategic importance, while enterprises play essential roles in realizing innovation," he said.

"We should encourage our entrepreneurs to remain dedicated to technological innovation."

Li said that the province will work tirelessly to help Zhejiang enterprises arm themselves with the best talent and latest technological equipment.

"Sustainable economic development relies on the degree of innovation. Our enterprises should take at least one step forward to become industry leaders," he said.

"They should aim at the most advanced technology in their respective industries."

By the end of last year, Zhejiang had more than 4,500 high-tech companies, 17 of which have been designated national role models for intellectual property development. The province has more of these model companies than any other region in China.

In recent years, the province has aggressively expanded the number and scale of high-tech parks. By the end of 2012, construction had finished on four national high-tech parks and 28 provincial ones.

According to the Science and Technology Department of Zhejiang, the province is going to spend more than 140 billion yuan ($23 billion) in research and development, accounting for 2.7 percent of the province's total GDP.

Zhejiang's economy has not lost its vitality. After a short period of adjustment, it has regained momentum, according to the local government.

In the first half of this year, the total industrial output of high-tech companies in the province reached 760.6 billion yuan, an increase of 9.4 percent year-on-year. The total GDP of the province in the first half of this year was 1.69 trillion yuan, an increase of 8.3 percent year-on-year.

In addition to high-tech industries, the other focal points for economic restructuring in the province include marine economy, international trade reform in Yiwu and financial reform in Wenzhou.

The establishment of the Zhoushan New Area, the fourth national new development zone, is one major step in the development of a marine economy.

Also, the Ningbo-Zhoushan port is now the largest port in the world in terms of cargo handled.

As an export-oriented province, the reform of international trade in the city of Yiwu, the world's center of small commodities, is also crucial to the economic development of the province. Under the reform, exports of Yiwu grew by more than 400 percent year-on-year in the first half of this year.

The financial reform in Wenzhou aims to provide a healthy and sustainable financing and funding environment for small and medium-sized enterprises in the province.

The gradually improving economic environment of the province is also attracting increasing amounts of foreign investment.

In the first half of this year, 717 new foreign-invested companies were established, with investments totaling $56.3 billion, an increase of 22.3 year-on-year.

yanyiqi@chinadaily.com.cn

(China Daily USA 09/06/2013 page19)