Foreword

In the past century, the fast advancement of science and technology and the enormous growth of economy brought about unprecedented progress of human civilization and profound social change. Based on advanced technology and sustained innovation, high-tech industries made swift transformation of knowledge into products and became the most dynamic element of knowledge economy.

At the beginning of the 1990s, to meet the challenges of new technological revolution, the Chinese government made a strategic decision to speed up development of high-tech industries. Thus National Science and Technology Industrial Parks (STIPs) came into being. STIPs took an active role and succeeded in helping build linkage between science and technology and economy and in boosting high-tech industry growth. Getting high economic and social returns with comparatively low investment, STIPs have accumulated rich experience for the structural reform of national economy and the nurturing of new source of economic growth.

The development experience of STIPs and high-tech industry proves that under the system of socialist market economy, an enterprise can grow fast in market competition provided it has the capability of technological innovation, market exploration and business management. A favorable environment is the key to its success. STIPs just provide such an environment in which technological achievements are commercialized and industrialized at a high speed. In the parks, a big number of newly formed high-tech enterprises have grown over a couple of years into new forces of economic growth and have demonstrated enormous potential.

With the era of knowledge economy coming, STIPs will play a more important role and make outstanding contributions to high-tech industry growth in China and all over the world.

1. Pioneering Course

Since its start in 1950's, STIP has played a key role in promoting the transformation of science and technology research results into products and services, incubating high-tech enterprises and entrepreneurs, cultivating new economic development. STIP has been proved an important mechanism for a country or region in its endeavor to realize high and new technology industrialization, promote economic growth and sustained social progress.

In August 1988, China's national high and new technology industrial development plan, namely the Torch Program, was put into effect. One of its important components is to establish STIPs and new & high-tech innovation centers. Following the Torch Program, local governments across the country began to set up STIPs in compliance with local conditions. Since 1991, 53 science and technology industrial parks have been approved to be National STIPs by the State Council. Over the past years, STIPs have made great strides, achieved tremendous successes, and found a new path of China's characteristics in developing high and new technology industry.

2.Striking Feature

Based on knowledge intensiveness and open environment, China's STIPs are to rely mainly on China's own scientific capability and economic strength, introduce from abroad advanced science and technology resources, funds and management tools and maximize the transfer of scientific and technological achievements into productive force by practicing preferential policies towards high and new technology industries and various reform measures to create optimal local environment which includes physical and policy infrastructure. STIPs have been built to accomplish the above objectives.

The establishment of STIPs is a great achievement of institutional reform in economic and science and technology management system of China. Keeping in line with China's concrete condition, it is an effective way for China to develop its new and high technology industry. At present stage, STIPs should rely further on institutional as well as science and technology innovation, strengthen function built-up and create favorable environment to attract talented scientific personnel and business managers who desire to start new venture so as to become a major base for technological innovation and industrialization and to play a radiating and leading part in regional economic development.

3. Functions with Rich Connotation

(1) A base to nurture and develop high and new technology industry;

(2) A demonstration center for speeding up transfer of R&D achievements to production and technological innovation to enterprise;

(3) An experimental zone for institutional reform and innovation;

(4) A center displaying how S&T is relied on to boost trade and China opening to the outside world;

(5) A school for cultivating high-tech enterprises and entrepreneurs;

(6) A source of radiation to apply high and new technology to updating traditional industry;

(7) A new community that embodies modern civilization of socialism.

4. Developing Domain

(1) Electronics and information technology

(2) Bioengineering and new medicine technology

(3) New materials and their application technology

(4) Advanced manufacturing technology

(5) Aeronautical and aerospace technology

(6) Marine engineering technology

(7) Nuclear utilization technology

(8) New sources of energy and high efficiency energy conservation technology

(9) Environmental protection technology

(10) Agricultural technology

(11) New technologies and processes applied to updating traditional industries

5. APEC Science and Technology Industrial Parks

Since 1997, approved by the State Council, ten STIPs in China, namely those in Beijing, Xi'an, Suzhou, Hefei, Yantai, Wuhan, Shanghai, Shenzhen, Chengdu and Yangling, have become Science and Technology Industrial Parks opening to APEC members, with a goal to promote cooperation and exchange between STIPs of China and APEC members. This effort demonstrated the determination of STIPs to become internationally oriented.

6. National High-tech Export Bases

To select qualified STIPs and build them into National High-tech Export Bases is an important component to realize the national strategy of "developing trade through science and technology". A concentration of high-tech enterprises, a flexible mechanism and talent intensiveness are the advantages that a STIP enjoys. While giving play to these advantages, STIPs should make good use of the favorable environment, take an active part in leading high-tech enterprises to explore international market so as to help improve export product mix and speed up international operation of the parks. Since 2000, the Ministry of Science and Technology (MOST) and the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) have jointly identified 20 STIPs in Beijing, Tianjin, Shanghai, Shenzhen, Suzhou and other cities as "the National High-tech Export Bases."

7.National Torch Software Development Base

To accelerate the development of software industry of China, since 1995 the Ministry of Science and Technology has begun to set up software development bases counting on the work of STIPs. In these bases, regional software development capabilities have been amassed to create an optimized environment for the development of software industry. With such an environment technological innovation, product development, enterprise incubation, personnel training, export and foreign currency earning are all boosted. There are nineteen STIPs established as National Torch Software Development Bases. There are Northeast University Software Park, Qilu Software Park, Western Software Park, Changsha Software Park, Beijing Software Park, Tianjin Huayuan Software Park, Hebei Software Park, Hangzhou High-tech Software Park, Fuzhou Software Park, Jinlu Software Park, Xi'an Software Park, Dalian Software Park, Guangzhou Software Park, Shanghai Software Park, Nanjing Software Park, Changchun Software Park, Xiamen Software Park, Hefei Software Park and Yunnan Software Park. These parks have become the mainstay of the national software industry.

8. Geographic Distribution of China's National Science and Technology Industrial Parks

(01) Zhongguancun Science & Technology Park

(02) Wuhan Donghu New Technology Development Zone

(03) Nanjing High and New Technology Industry Development Zone

(04) Shenyang High and New Technology Industry Development Zone

(05) Tianjin New Technology Industry Park

(06) Xi'an High and New Technology Industry Development Zone

(07) Chengdu High and New Technology Industry Development Zone

(08) Weihai Torch High Technology Industry Development Zone

(09) Zhongshan Torck High Technology Industry Development Zone

(10) Changchun High and New Technology Industry Development Zone

(11) Haerbin High and New Technology Industry Development Zone

(12) Changsha High and New Technology Industry Development Zone

(13) Fuzhou High and New Technology Industry Development Zone

(14) Guangzhou High and New Technology Industry Development Zone

(15) Hefei High and New Technology Industry Development Zone

(16) Chongqing High and New Technology Industry Development Zone

(17) Hangzhou High and New Technology Industry Development Zone

(18) Guilin High and New Technology Industry Development Zone

(19) Zhengzhou High and New Technology Industry Development Zone

(20) Lanzhou High and New Technology Industry Development Zone

(21) Shijiazhuang High and New Technology Industry Development Zone

(22) Jinan High and New Technology Industry Development Zone

(23) Shanghai High and New Technology Industry Development Zone

(24) Dalian High and New Technology Industry Park

(25) Shenzhen High and New Technology Industry Development Zone

(26) Xiamen Torch High Technology Industry Development Zone

(27) Haikou High and New Technology Industry Development Zone

(28) Suzhou High and New Technology Industry Development Zone

(29) Wuxi High and New Technology Industry Development Zone

(30) Changzhou High and New Technology Industry Development Zone

(31) Foshan High and New Technology Industry Development Zone

(32) Huizhou High and New Technology Industry Development Zone

(33) Zhuhai High and New Technology Industry Development Zone

(34) Qingdao High and New Technology Industry Development Zone

(35) Weifang High and New Technology Industry Development Zone

(36) Zibo High and New Technology Industry Development Zone

(37) Kunming High and New Technology Industry Development Zone

(38) Guiyang High and New Technology Industry Development Zone

(39) Nanchang High and New Technology Industry Development Zone

(40) Taiyuan High and New Technology Industry Development Zone

(41) Nanning High and New Technology Industry Development Zone

(42) Urumqi High and New Technology Industry Development Zone

(43) Baotou Bare Earth High Technology Industry Development Zone

(44) Xiangfan High and New Technology Industry Development Zone

(45) Zhuzhou High and New Technology Industry Development Zone

(46) Luoyang High and New Technology Industry Development Zone

(47) Daqing High and New Technology Industry Development Zone

(48) Baoji High and New Technology Industry Development Zone

(49) Jilin High and New Technology Industry Development Zone

(50) Mianyang High and New Technology Industry Development Zone

(51) Baoding High and New Technology Industry Development Zone

(52) Anshan High and New Technology Industry Development Zone

(53) Yangling Agri-tech Demonstration Zone

9.Incubation system for technological innovation

Built on the basis of drawing up successful experience from business incubators abroad and in compliance with China's concrete conditions, China's high and new technology innovation centers (hereafter referred to as innovation centers) are science and technology service institutions of public interest, whose objective to stimulate transfer of S&T achievements into products and services and to cultivate high and new technology enterprises and entrepreneurs will be realized through provision of all necessary help and services to S&T start-up companies in their early stage of development.

Centering around innovation centers of various types, STIPs in China continue to make efforts to built and improve relevant infrastructure and institutions, and provide services to S&T start-ups in such area as R&D, information, financing, trade, legal protection, loan guarantee, technology evaluation, human resources, international exchange and training, intellectual property protection and technology transaction, thus establishing initially and incubation system of China's characteristics for technological innovation.

Innovation centers have become a base to commercialize high and new technology achievements, a school to cultivate high and new technology start-ups and entrepreneurs, a bond between entrepreneurs and universities or colleges, R&D institutions as well as large and medium sized enterprises, a core in the incubation system for technological innovation and a major component in the supporting system of high and new technology industries.

10. New High-tech Enterprises and Talented People

(1) Corporate Development

In terms of industrial development, STIPs carry out a policy of "depending on their own effort in research, development and innovation while introducing and assimilating innovation from external resources as secondary". They focus their support on the development of high-tech enterprises that have independent intellectual property rights while strengthening cooperation with organizations abroad. As a result, a generation of well-known high-tech group companies has come into being with Legend, Founder, Haier, Changhong, Huawei and Broad as examples. With their own respective advantages and characteristics, these companies have become the mainstay of high-tech industry. By the end of 2000, there are 1,252 enterprises whose revenue from technology transfer, industrial products and trade surpassed RMB 100 million. Among them, there are 143 enterprises whose revenue is well over RMB one billion. At the same time, a great number of small and medium sized new and high-tech enterprises with high flexibility, market adaptability and strong technological innovation capability are growing up at a fast pace in the STIPs. By 2000, there are altogether 20,796 enterprises in the STIPs.

(2) A Galaxy of Talents

STIPs are results of the world new technology revolution and China's reform and opening-up policy. Taking men as the decisive factor, they count on government guidance and market mechanism for development. There are a great number of personnel and management team of high caliber. They are creative, entrepreneurial, united, with a strong sense of responsibility. There are 560,000 scientists and engineers in STIPs, among which 52,103 have master degree, 9,358 PhDs, and nearly 5,615 Chinese scholars returning from abroad. Dozens of stations for post doctoral training and more than 250 business incubators have been set up. A generation of versatile personnel and professional entrepreneurs are growing up in the STIPs. After years of hard work in their career build-up, these people are skilled professionally, creative, experienced in business management and highly ambitious.

11. The Dawn of the Twenty-first Century

STIPs are embracing the twenty-first century by completing their function, optimizing the environment and promoting industrial development. By 2005, total revenue from technology transfer, industrial product and trade will be doubled to RMB 1,700 billion, and total value of industrial production will reach RMB 1,400 billion. Among those, there will be more than 1,500 enterprises each of whose revenue will be over RMB 100 million and more than 100 over RMB 5 billion. A group of STIPs of international standard with modeling effect will be established, representing China in its high-tech development capability.

By 2010, the functions of national STIPs will be further perfected. Environment for business development will be bettered, an integrated incubating system for technological innovation completed, capability in independent innovation and development increased, and a unique corporate culture formed. Thus the objective in the stage of innovation and development will have been realized, China's high-tech industrial capability and international competitiveness increased, and China's industrial structure optimized. STIPs will produce a total revenue that constitutes 20% of total industrial increase in national GDP and 20% of national export. This will contribute greatly to technological innovation, industrialization, sound economic growth, social stability and integration into economic globalization of China.