Development Planning of Z-Park during the ¡°11th Five-Year Plan¡± of Beijing

Administrative Committee of Z-Park

August, 2006

Contents

I. Planning Background

i. Review of Development during the ¡°10th Five-Year Plan¡±

ii. Situation of Development during the ¡°11th Five-Year Plan¡±

II. Overall Development Strategy

i. Strategy Orientation

ii. Guidelines

iii. Development Policies

iv. Distribution

v. Development Targets

vi. Implementation of ¡°245 Project¡±

III. Promote Capability in Independent Innovation

i. Set up the new-type Industry-Academia-Research technical innovation system taking enterprises as main part

ii. Carry out four strategies including intellectual property, standard, brand and technology transfer

iii. Technology breakthrough in important fields

iv. Construction of important technology infrastructure

v. Introduction, digestion and re-innovation of internationally advanced technologies

vi. Technical service and high radiation

IV. Accelerate development of hi-tech industry

i. Build up special industrial structure and industrial ecosystem

ii. Support the development of state strategic industries including software, integrated circuit and network communication.

iii. Accelerate the development of supporting industries like computer, digital audio, video, and photoelectric display.

iv. Emphasize growth of biomedicine, energy, environment protection and creative industries.

v. Foster hi-tech industrial market.

vi. Internationalization of hi-tech industries.

V. Optimize industrial development space

i. Form reasonable industrial space distribution

ii. Build special professional parks and industrial bases.

iii. Strengthen land administration and intensive utilization

iv. Infrastructure construction and ecological environment construction

v. Construct ¡°Digital Z-Park¡±

VI. Hasten reform and innovation of investment and financing

i. Guide and enhance the development of venture investment

ii. Enhance enterprises to utilize multi-level capital markets for financing

iii. Innovate indirect financing modes of SME

iv. Perfect public service functions of investment and financing

VII. Accelerate development of human resources

i. Train hi-quality innovation and undertaking talents

ii. Introduce hi-quality innovation talents

iii. Perfect talent excitation mechanism

iv. Optimize talent service environment

VIII. Innovate mechanism and system

i. Reform experiment unit of mechanisms and system

ii. Organization innovation

iii. Governmental service innovation

iv. Construction of Z-Park innovation culture

v. Improve legal environment

IX. Implementation of planning

i. Institute and carry out supporting policies

ii. Scientifically arrange the special capital budget

iii. Strengthen guidance to sub-park planning

iv. Perfect the assessment and evaluation

v. Enhance social supervision

As the first medium- to long-range development planning made by Z-Park after the raising of the important strategy of the scientific outlook on development and the building of harmonious socialist society by the Chinese Communist Party Central Committee, the Development Planning of Z-Park during the ¡°11th Five-Year Plan¡± of Beijing is an important special planning of Beijing in the ¡°11th Five-Year Plan¡± from 2006 to 2010, and also the action plan carrying out the important determination of the State Council about strengthening Z-Park.

The main basis of the planning includes: Proposals of Chinese Communist Party Central Committee Concerning the Constitution of the 11th Five-Year Plan of National Economy and Social Development; Outline of China National Medium- to Long-Range Program for Scientific and Technological Development; Circular of the State Council Concerning Implementing Some Supporting Policies of China National Medium- to Long-Range Program for Scientific and Technological Development (2006-2020); Proposals of China Communist Party Beijing Municipal Committee Concerning the Constitution of the 11th Five-Year Plan of Beijing National Economy and Social Development; Urban Overall Planning of Beijing (2004-2020); Outline of the 11th Five-Year Plan of Beijing National Economy and Social Development; Opinions of Beijing Municipal Party Committee of the CPC and Beijing Municipal Government concerning Strengthening Capability in Independent Innovation and Construction of Innovation-oriented City; Statutes of Z-Park¡¯ and Opinions Of Beijing Municipal Government concerning Further Strengthening Z-Park.

I. Planning background

i. Review of the Development during the ¡°10th Five-Year Plan¡±

Originated from ¡°Zhongguancun Electronic Street¡± in the 1980s, Z-Park is the first hi-tech park approved by the State Council in 1988. The State Council made an approval reply for accelerating the construction of Z-Park in 1999. During the 10th Five-Year Plan, Beijing Municipal Party Committee of the CPC and Beijing Municipal Government organized and carried out the Outline of Action for Z-Park to Achieve Further Development in Five Years. During the five years, by bravely exploring, persistently innovating, vigorously boosting the development of hi-tech industries coring independent innovation, Z-Park had succeeded in accomplishing ¡°great improvement in three years¡±, ¡°further development in five years¡± and main tasks in the ¡°10th Five-Year Plan¡±. Solid basis had been established for the development during the ¡°11th Five-Year Plan¡± by the new achievements acquired in the ¡°10th Five-Year Plan¡± by Z-Park.

Hi-tech industries had been developed speedily. In 2005, sales revenue of over RMB 480 billion had been obtained in Z-Park hi-tech industries, over two times that in 2000, with an annual growth of over 20%, accounting for about one-seventh of the total revenue of the national hi-tech parks; added value of RMB 96 billion had been realized, accounting for 14.1% of the total output value in Beijing. The important industrial clusters represented by software, integrated circuit, computer, network, communication, etc, had been shaped preliminarily, with rapid development of hi-tech service industry, driving the adjustment of economic structure and industrial upgrade of Beijing.

A batch of technologies, products and enterprises with international advanced level have been formed. Z-Park has undertaken 25% of the national ¡°863 projects¡±, as well as 36% of ¡°973 projects¡±. During the five years, five items of First National Top Science-Technology Prize of China had been acquired among hi-tech enterprises, amounting to 9 items in total, which had been topping in technologies and products in national important domains including software, digital video and audio, vaccine, new material, environmental protection and new energy. Moreover, some enterprises had been engaged in taking part in and instituting the national and international standards by their core patents. The transnational M&A by Lenovo Group and overseas listing by some enterprises marked that the internationalization of Z-Park enterprises had initialed

Technological innovation system has been perfected gradually. Z-Park had built a batch of national important labs, national engineering R&D centers, technical incubators, and public technical supporting platforms. The number of R&D centers of transnational companies settled in Z-Park had been up to 65. Hi-tech enterprises had set up technology alliances and industrial alliances, established R&D institutions with transnational companies, processed research and development with universities and institutes, which had been new forms of technical innovation. The investment in R&D accounted for up to 4.7% of the sales revenues, 4% over the national average level.

Capability in technical radiation had been enhanced greatly. Technical contracts exported out of Beijing account for about a half of total contracts annually. Especially, the information technology developed by Z-Park enterprises has played an important role in information-based construction of China national economy and social development. Technical radiation and influence of Z-Park had been expanded in methods of technology transfer, technical service, construction of industrial chain, shareholding investment, etc.

New progresses had been obtained in infrastructure construction. A batch of important infrastructures including water, power, gas, heat supply, roads, communications and network had been construction, greatly boosting the development and construction of special parks and industrial bases, while the situation of infrastructure and industrial space unfitting the development of hi-tech industries had been improved efficiently.

New breakthrough had been made in innovation of mechanisms and systems. Z-Park had made active exploration in legal environment, financing and investment system, talent development, credit system, intellectual property rights, market service system, municipal service system construction, governmental function transformation, etc. in its Z-Park Regulations taking what is not forbidden by law is not against law as basic principal, playing a role of state comprehensive reforming experimental park.

The old industrial base of electronic city had been reconstructed successfully. After entering into the Z-Park, the Electronic Park has succeeded in environmental improvement, state-owned enterprise reform and industrial reconstruction by utilizing the policies, technologies, mechanisms and brands of Z-Park, transforming from China traditional electronic industrial base into the modernized and internationalized electronic information industrial base, creating a new road for the rising of China old industrial bases.

The atmosphere of intensive innovation and venture in Z-Park is strong. Plenty of technological SME and talents have been gathered in Z-Park. There are over 2000 newly-built innovation corporations and tens of thousands of talents employed in Z-Park. A wave has been formed for Chinese students studying abroad returning China to create new business in Z-Park, which have been the new blood of independent innovation and hi-tech industrial development. The innovation culture of Z-Park has been enriched by values including ¡°science and democracy, advancing with the times¡±, ¡°encouraging creating new business and tolerating failure¡± and ¡°create fortune by technology¡±.

On the whole, we have obtained outstanding achievements in the development and construction of Z-Park, despite of some deeply contradictions: small and medium sized technological corporations have difficulty in financing, with incomplete capital market, without established venture investment withdrawal system; the property right incentive mechanism having the intellectual elements joining in the income distribution and fully mobilizing the enthusiasm and creativity of technologists has not been established completely; it is the successful experiences of the developed countries to support the development of technologies and products with independent intellectual property rights through government and national defense procurement, but China has not established clear, and operable systems and rules currently; the efficient mechanism of intellectual property creation, utilization and protection, with the credit system construction under primary stage; under the market-directed economy, further exploration is needed for the efficient production-academy-research combination mode; during the process of world industrial structural adjustment and transfer of foreign manufacturing into China, it has been a urgent question for attention and solution to give great supports for independent innovation and industrialization in capital, policy and system reformation.

ii. Situation of Development during the ¡°11th Five-Year Plan¡±

Opportunity of development

The State Council made the great determination of boosting Z-Park in July, 2005. In the face of the future, with the advantages in technology and education, talent, technology, information and culture £¬Z-Park now stands on the new jumping-off point. Currently, the economic globalization is intensified, with accelerated industrial division and transfer speed as well as quickly changed technologies. China has entered into an important strategic opportunity period in the development of society and economy, having enhancing the capacity of independent innovation as the central chain of economic increasing mode transformation and economic structural adjustment, when the development of recycling industries and construction of a conservation-minded society has been the urge of the era. In January 2006, the National Science and Technology Conference had confirmed the development guideline¨C¡°independent innovation, important span, supporting development and leading future¡± of the development of science and technology, putting forward the general target of constructing the innovation-type China. When the capital has entered into a new stage in economic development, it has been the main tasks of the capital economic development in 11th Five-year Plan to succeed in holding the featured and hi-level Olympic Games, develop the hi-end, hi-efficient and hi-radiation industry actively, and make efforts to construct the innovation-type city, which are all the advantageous opportunities of Z-Park to have a healthy and rapid development.

Challenges to face

Besides those advantages for development, we should also notice the intense competition in international technology and talent. Compared with the international advanced level, Z-Park is inferior in the capability of independent innovation, overall strength in hi-tech industry and international competitiveness of hi-tech corporations, moreover, existing long-standing deep systemic questions in financing, investment, property right incentive, intellectual property right, credit system and governmental functions, which have been the major factors to restricting the future development of Z-Park. Therefore, Z-Park shall break through the bottleneck restriction and system obstruction of development, seizing the opportunities, to deal with challenges and create a new phase of boosting Z-Park.

II. Overall Development Strategy

i. Strategy Orientation

As the comprehensive reform experiment area for the state to carry out the strategy of relying on science and education and talents to rejuvenate the nation and perfecting the socialist market economic system, Z-Park is an important part of the national innovation system, the core of the capital innovation-orientated city, the demonstrative base of independent innovation and intellectual economy with international competitiveness, the base of technical irradiation, technical incubation and industrialization, and the training base of innovation talents.

ii. Guidelines

Guided by the scientific development view, persisting in the principle of market-oriented, taking corporations as the main body and government constructing and optimizing the development environment, Z-Park brings the basic function of market to distribute the scientific resources and the resource-intensive advantages in science, intelligence and culture, developing technical innovation, systemic innovation, organization innovation and cultural innovation, pushing the progress of marketing, legal system and internationalization, enhancing the development of hi-tech industries coring independent innovation, to further boost Z-Park and establish basis for world topping scientific park. 

iii. Development Policies

Make efforts to achieve ¡°four combinations and four breakthroughs¡±, and realize ¡°four-in-one¡±:

First, combine the development of Z-Park with the implementation of the state important strategies, and acquire breakthroughs in improving the capabilities in independent innovation and international competitiveness in some important industries, as well as in seizing the technological and industrial commanding heights;

Second, combine the development of Z-Park with experiment work of the state important systemic innovation, and acquire breakthroughs in taking the lead to perfecting the socialistic market economic system and important systemic innovation in being brought in line with international practice, as well as in the construction of new-type industry-academia-research system.

Third, combine the development of Z-Park with the capital economic development and Olympic driving strategy, and acquire breakthroughs in transformation of capital economic growth mode, industrial update, as well as hi-tech products and hi-tech services supplied for Beijing Olympic Games in 2008.

Fourth, combine the development of Z-Park with the construction of capital innovation-oriented city and economic development of Surrounding Bohai Area including Beijing, Tianjin and Hebei, bring the leading role of Z-Park into play, and acquire breakthroughs in forming the hi-end, hi-efficiency and hi-irradiation.

Realize ¡°four-in-one¡±: develop Z-Park to be an important carrier for the state to boost technical progress and enhance the independent innovation capability; to be the powerful engine of adjustment of capital economic structure and transformation of economic growth mode; to be the service platform for hi-tech corporations to participate in international competitions; to be the frontal position to seize the commanding heights of the world hi-tech industry.

iv. Distribution

In accordance with the bulletin (No.3 in 2006) of the State Development and Reform Commission of the People¡¯s Republic of China and Beijing Municipal Overall Planning, Z-Park will carry out the space distribution of ¡°one park with many areas and bases¡±, covering a total area of 23252.29 hectares, including Haidian Area (13306 hectares), Fengtai Area (818 hectares), Changping Area (1148.29 hectares), Electronic City (1680 hectares), Yizhuang Area (2678 hectares), Desheng Area (864 hectares), Shijingshan Area (345 hectares), Yonghe Area (300 hectares), Daxing Bioengineering & Pharmaceutical Industrial Base (963 hectares), Tongzhou Area (1450 hectares), as well as some professional parks gathering special industries, industrial bases and university scientific parks, among which Haidian Area is the principal park and core of Z-Park.

v. Development Targets

On the basis of the overall outlook of constructing Z-Park to be the world topping scientific park with emerging independent intellectual property, rapidly developing hi-tech industry, plenty of innovation and enterprising talents, active enterprising and investment activities, excellent credit order, perfect infrastructure facilities, intensively utilized resources, beautiful and fresh environment, dense culture atmosphere and harmoniously progressing society, the main targets of the development in the 11th Five-Year Plan are made as following:

The strength of hi-tech industry is enhanced remarkably. Strive to form special industrial clusters in seven domains including software, integrated circuit, mobile communication, computer and network, photoelectric display, bioengineering & pharmacy, and environmental protection and new energy, further increase the contribution of hi-tech industry to the development of the capital economy and society. Up to 2010, it is estimated that the corporate sale incomes will be up to RMB 1,000 billion, one time more than that in 2005; and the value added in the park will be equivalent to about 20% of the total output value of Beijing.

The capability of independent innovation is improved prominently. Develop a batch of hi-end technologies and products with core competitiveness. Corporations are enthusiastic in participating in instituting international and domestic standards, stably increasing the number and amount of technical transfer and technical transaction. Up to 2010, strive to increase the proportion of the investment into R&D out of the sale incomes by 2-3 percents among hi-tech corporations in Z-Park; increase the number of patent applications and software registrations to over ten thousand.  

The corporation competitiveness is improved notably. A batch of advantageous corporations with independent intellectual property rights and great international competitiveness will emerge. Up to 2010, it is estimated that there are about 10 large-scaled corporations with annual sale of over RMB 10 billion; a batch of ¡°Gazelle¡± and ¡°Little Giant¡± enterprises growing fast with high profits will appear.

The number of hi-quality talents will be increased sharply. A batch of excellent enterprisers and venture investors will emerge, as well as a batch of scientists and engineers with strong market consciousness, a batch of hi-skilled industrial technical workers with abundant operation experiences, and a batch of professional agent service talents in line with international practice.

The innovation and enterprising environment is optimized markedly. Primarily form the investment and financing system, enterprising incubation system, intellectual property protection system, agency service system and corporation credit system profiting the development of scientific corporations, form special and vivid Z-Park culture, and primarily realize the transformation of management-orientated government to service-orientated government.

Regional function of Z-Park will be enhanced observably. Construct a batch of new infrastructure facilities and supporting service facilities, obtain evident effect in intensively utilizing land, hi-efficiently using resources, and protect ecological environment, supplement economic growth with environmental protection and social development, and Z-Park has formed primary size as the special function area of the capital.

vi. Implementation of ¡°245 Project¡±

Construct and perfect two systems, namely technical innovation system and enterprising service system.

Push and deepen four systemic innovations, namely, investment and financing system, credit system, intellectual property creating, using and protecting system, and talent training, attracting and using system.

Focus and support ¡°five batches¡±, namely, a batch of important industrial developments, a batch of core technical breakthroughs, a batch of important innovation project settlements, a batch of famous corporation establishments and a batch of industrial base constructions.