Pilot Park for Innovation

Zhongguancun Science Park strives to become an innovation center for China and the world

In 2009, the aggregate revenues generated by the companies in Z-Park reached 1.2 trillion yuan ($176.99 billion), a year-on-year increase of 20 percent

By LAN XINZHEN

China’s first hi-tech science park just got an upgrade. Zhongguancun Science Park (Z-Park) in northwest Beijing will serve as the national innovation model park for other similar science hubs across the country—and it’s currently the only park model approved by the Chinese Government.

The science park recently unveiled the Action Plan on Establishing the Zhongguancun National Innovation Model Park (2010-12), which will help China achieve its goal of becoming an innovative country. According to the plan, by 2012, Z-Park will have a primary system framework favorable to innovation, and research and development expenditures will have increased by 15 percent, compared to 2009 figures. The proportion of R&D expenditures in the park’s total income will surpass 4 percent. Z-Park will continuously produce world-recognized innovations, and the number of invention patents by companies in the park will increase by 60 percent,compared to 2009. Corporate innovation capabilities will be improved, as will the international competitiveness of strategic emerging industries.

Yang Jianhua, Deputy Director of the Management Committee of Z-Park,said the development outlines for Z-Park,extending as far as 2020, will be jointly made by several ministries and commissions of the Central Government and will be released soon. This is the first time that several ministries and commissions have come together to create an outline for a science park.

Before it became Z-Park, the Zhongguancun area was called “Electronics Avenue” due to the large number of information technology and electronics-related businesses in its vicinity. In May 1988,the State Council officially recognized the Zhongguancun area as the Beijing New Tech Industrial Development Trial Zone, which was later changed to Z-Park. The science and technology center, as China’s first hitech park, has also become a trial zone for economic, scienti fi c and educational reform.In 2006, the State Council approved a new plan for Z-Park to cover a total area of 232 square km.

Now, nearly 20,000 hi-tech companies, such as Lenovo and Founder; 39 universities, including Peking University and Tsinghua University; as well as 140 research institutions, such as the Chinese Academy of Sciences (CAS), are located in Z-Park’s boundaries. Within the park,there are 57 national-level labs, 26 national engineering research centers, 29 national engineering and technology research centers, 17 university-affiliated science parks and 29 start-up parks for overseas returns.The number of returned students that start their business in Z-Park accounts for one fourth of the country’s total number of returned students. Moreover, in Z-Park there are more than 30 new industrial associations established, managed and operated by companies in different fi elds.

The number of start-up companies and investment in Z-Park every year accounts for about one third of the national total, so does their combined investment volume.And every year, an average of 10 companies from the park are listed on the stock market.A large number of intellectual property right(IPR) achievements have also been made in Z-Park.

In 2009, the aggregate revenues generated by the companies in Z-Park reached 1.2 trillion yuan ($176.99 billion), a yearon-year increase of 20 percent. Yang said the science park focuses on development within strategic emerging industries involving new energies, energy conservation and environment protection, electric vehicles,pharmaceuticals and information technologies.

Policy testers

“To improve the innovation capabilities of corporations, we have experimented with a few new policies,” Yang said.

During Z-Park’s first stock ownership incentive program, universities, research institutions and state-owned hi-tech enterprises within the park granted stocks or rights to dividends to their research personnel as a means of encouragement.

Financing policies were also implemented to support angel investment, venture capital and equity investment to cover the costs of the technology innovation process.Z-Park also encourages new industrial organizations and private enterprises within the park to participate in key national-level projects.

The park also supports 200 companies involved in the information technology,biological engineering and new pharmacies,energy and environment protection, new materials, and aviation and space industries.

SOME ASSEMBLY REQUIRED: A researcher works on a component for a high-definition media Internet download player at a company in Z-Park

Also, by 2012, Z-Park will realize industrial production of at least 20 key technologies. Currently, 10 projects have been fi xed, including a chip project by the CAS Institute of Computing Technology,the nano meter material green printing technology by the CAS Institute of Chemistry, and an anti-cancer pharmacy project by Protgen Ltd.

Z-Park will also implement demonstration projects for key technologies,organizing more than 20 products developed in the park to be put into production.Most of these technologies will help tackle problems in urban emergency measures,rail transportation, garbage and sewage disposal, as well as health care, and all products and technologies have independent IPRs, Yang said.

Fresh minds

Talent is key to innovation. And a large percent of all innovations come from young minds.

In the past decade, Yang noted, the number of overseas-returned students starting their business in Z-Park has increased rapidly. Currently, there are more than 15,000 returned students working in the park, and the number of companies established by these people has exceeded 3,000.

Deng Zhonghan, one of those returned students, obtained his doctorate in electronic engineering and his master’s degrees in economy and management, and physics from the University of California,Berkeley. Soon after he returned home in 1999, he established Vimicro Corp.in Z-Park. In 2005, the company won the National Science and Technology Advancement Award for the multimedia chip technologies it developed, and Deng was invited to join the Chinese Academy of Engineering (CAE) in 2009, as the academy’s youngest member.

Wen Jianping, with his doctorate in engineering from the University of New South Wales, returned home in July 2001 and established Beijing Origin Water Technology Co. in Z-Park. The company now ranks first in China and third in the world in the field of applicable technologies of novel membrane filtration systems, and is the only Chinese company that can compete with international magnates in this field, such as General Electronics and Siemens.

Yang said in order to attract returning students to start business here, Z-Park has established six service systems∶pioneer services, venture capital nurturing, resource sharing, financing promotion, career development and financial support. And after the State Council approved the national innovation model park in March 2009, Z-Park launched a project to attract and gather high-level overseas talents.

“Our primary goal is to attract more than 150 leading talents and venture investors to start businesses in Z-Park within the next two years,” said Yang.

Z-Park will grant a 1 million-yuan ($147,490) lump sum bonus to every leading talent who starts a business in the park.

Innovation center

In March 2009, the State Council approved Z-Park as a technology innovation center that would eventually become a global innovation center. The Action Plan on Establishing Zhongguancun National Innovation Model Park (2010-12) has listed specific measures for ful fi lling this goal.

Z-Park supports exports of products developed in the park with IPRs to expand into overseas markets, guide and encourage companies to make international trademark registration and defend their rights overseas, support and guide companies to make international certification, and explore overseas development service centers to set up service platforms for companies based in the park.

Yang said Z-Park supports international academic organizations and industrial organizations to carry out exchanges with businesses in the park and explore new opportunities for international cooperation.Z-Park welcomes various international industrial organizations to establish branches in the park and strives to explore exchanges and cooperation in depth with international renowned science parks.

“Due to accelerated economic globalization, we emphasize indigenous innovation, which means we want to obtain key technologies and IPRs in an open environment. Indigenous innovation does not reject technology introduction, nor does it reject international cooperation,” Yang added. ■

“Indigenous innovation does not reject technology introduction, nor does it reject international cooperation.”

—Yang Jianhua, Deputy Director of the Management Committee of Z-Park