According to the Chinese government, industry parks are considered an important tool in driving economic development, attracting and keeping residents, and increasing the overall quality of life in a given region. As such, Lux Research today unveiled a comprehensive analysis of the more than 1,500 established industrial parks in China based on location, technology capability, technology focus, and domestic and foreign content.
The report titled “Seeing the Forest and the Trees: Navigating China’s Industry Park Innovation Engine,” educates technology scouts on the unique opportunities for innovation within this high growth market, and guides prospective R&D and manufacturing entrants to locations where incentives, resources and a critical mass of likeminded entities already exist. The new research is part of the recently launched Lux Research China Innovation Intelligence service, providing the world’s leading corporations with ongoing technology scouting and market intelligence from the world’s most dynamic economy.
According to Lux Research, less than 6% of established parks have substantial emerging technology content, but this still amounts to 85 total parks from which a critical mass of China’s innovative companies will emerge. University science parks represent a key constituency within this population, serving as a portal to commercialization for technology from China’s leading universities. Critically, this also represents the category of park with the lowest foreign presence. Only one such park out of more than 80 has measurable foreign activity, a true blind spot in emerging technology scouting for corporations across the globe. This gap presents an untapped opportunity for corporations to identify partnership opportunities and extend open innovation best practices into China.
The broader population of industry parks also offers key benefits to companies looking to expand including better access to the government authorities, favorable policies such as tax refunds, and value-added services that can drive market access in key provinces for growth in China. As progress is being made to foster innovation and encourage growth within these parks, corporations and governments around the globe should monitor closely for appropriate opportunities and potential expansion.
Key findings include:
- Emerging technology in the industry parks will inevitably grow in quality and quantity as low margin manufacturers are displaced by an increasing wave of technology-driven start-ups
- Beijing and Shanghai will continue as centers of excellence, but growing capability from leading universities in other key provinces will create new innovation hubs
- Favorable financial considerations for start-ups incubated in industry parks and a new entrepreneurial freedom for state-owned enterprises will bring a new, positive innovation influence to high-tech parks.
“The Chinese government has dedicated a huge effort and significant investment in supporting the development of technology, especially emerging technologies, in China. Administrators and policy makers in developing regions remain committed to growing the overall industry park content in their regions to fuel growth,” said Richard Jun Li, the Shanghai-based Research Director of the China Innovation Intelligence service. “There is little doubt that both the number of high-tech industry parks and the emerging technology content will grow throughout the 12th five year plan and, in all likelihood, beyond.”
About Lux Research
Lux Research provides strategic advice and on‐going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.