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Zhongguancun park: Questions and answers

(China Daily)
Updated: 2011-05-09 07:54

Q+A | Yang Jianhua

Editor's note: Zhongguancun in Beijing is China's biggest and most famous technology hub. Originating in a small street where electronic products were sold, it has become the home of many Chinese technology companies, including Lenovo Group, Baidu Inc and Founder Group. It also attracted many world-renowned technology corporations such as Google, Microsoft, Intel, Oracle Corporation and Motorola, which established their China headquarters and research centers there.

China Daily reporter Wang Xing recently interviewed Yang Jianhua, deputy director of the administrative committee of Zhongguancun Science Park, on his views of the development of China's very own "Silicon Valley".

Q: What makes Zhongguancun the home of China's most innovative companies?

A: I think one of the major reasons is it has huge resources in research and development. Zhongguancun is close to a group of top Chinese universities, national academies and corporate research centers. These skill centers have provided the funding base for Zhongguancun. For example, the biggest company in Zhongguancun is Lenovo Group, which was spun off from the Chinese Academy of Sciences. Founder Group is a major Chinese technology conglomerate that was spun off from Peking University.

In addition, a series of government policies since 1988 such as providing tax exemptions, research subsidies and support for Zhongguancun companies also played a major role in the development of the park. These measures also make Zhongguancun the most attractive place for Chinese overseas students to establish a business back in China.

Q: When talking about Zhongguancun, many, especially foreigners, regard it as the Chinese "Silicon Valley". What do you think of such a comparison?

A:Zhongguancun is China's earliest and its biggest technology hub. Usually we don't introduce ourselves as a Chinese "Silicon Valley". Zhongguancun and Silicon Valley have certain differences such as in management style, which reflect differences in the political system of China and the United States. We are also behind Silicon Valley in terms of the scale of the technology industry cluster. When talking about Silicon Valley, people will think of Google, Microsoft and Cisco. It is these companies that drive the development of the world's information technology industry. The income of companies in Zhongguancun saw an increase of 26 percent over the past 10 years. But there is still a long way to go before our companies can catch up with those in Silicon Valley in terms of scale and the level of internationalization.

Q: What role did the administrative committee of Zhongguancun Science Park play in the success of Zhongguancun?

A: The administrative committee of Zhongguancun Science Park is part of the Beijing municipal government that helps coordinate with and serve the companies in Zhongcuancun. Unlike many new high-technology parks in other cities, we don't have rights in areas such as land-use approval and tax collection. But we did help a lot in creating a regulatory environment that fosters innovation. For example, we did a lot of work in coordinating with the Chinese central government in giving preferential policies to Zhongguancun.

Because we don't have rights to approve anything, we can get closer to the companies that we serve and help solve the problems that they may have. I think that is one of the major reasons that we can attract so many talented and high-technology companies.

Q: Do you think the success model of Zhongguancun can be copied in other Chinese cities or even overseas?

A: Some parts of the Zhongguancun can be copied but some others cannot. I think helping to foster an industry or establishing preferential policies can be copied, but the geographic and demographic characteristics of Zhongguancun cannot be duplicated.

Zhongguncun has China's biggest technology talent pool, which provides the foundation for high-tech industry. That is very hard to replicate.

Q: What do you think Zhongguancun will be in the next 20 years?

A: I think in the next two decades, Zhongguancun will have the three top technology industry clusters in the world and will create a group of the world's top technology entrepreneurs. In the next 20 years, the capital market in Zhongguancun will be much more mature and active, so entrepreneurs will have much more resources to achieve their dreams and change the world.

China Daily

(China Daily 05/09/2011 page16)