Hunan's new national innovation zones

Three cities receive designation to pilot tech breakthroughs, Tang Zhihao and Feng Zhiwei report.

High-tech parks in Changsha, Zhuzhou and Xiangtan in Hunan province will support China's independent innovation "shoulder-to-shoulder" with top high-tech parks such as Beijing's Zhongguancun Science Park and Shanghai's Zhangjiang High-tech Park, said local officials.

Early this year, the central government approved development of national innovation demonstration zones in existing high-tech parks in the three cities to deepen overall technological advancement.

Innovation demonstration zones are part of a pilot program started by the central government in 2010 to promote breakthroughs, strengthen industrial competitiveness and enhance the role of high-tech parks in guiding regional development.

The zones are eligible for beneficial policies not offered to those without the designation.

Experts say innovation demonstration zones will serve as powerhouses to support long-term development in Hunan province. According to Hunan's 2015 government work report, the demonstration zones will become one of three pillars that support Hunan's growth, adding that officials "will spare no effort to foster new growth points in the future".

City cluster

Unlike Shanghai and Beijing, the city cluster of Changsha, Zhuzhou and Xiangtan (Chang-Zhu-Tan) does not have a strong economic, finance and technology base.

But figures from authorities show that annual growth averaged 36 percent in the past five years in the cluster, higher than all large cities across the country.

Supported by high-tech parks in three cities, the Chang-Zhu-Tan cluster has also achieved outstanding science results.

It developed the world's fastest computing system, the world's fastest rail locomotive, pump trucks with the longest boom systems and the most powerful caterpillar crane in the world. Figures from authorities show that 70 percent of the technology results in the province and 60 percent high-tech output come from high-tech parks in Changsha, Zhuzhou and Xiangtan.

As manufacturing hubs for advanced machinery in China and worldwide, local companies include heavy machinery makers Sany and Zoomlion based in Changsha.

The newly developed industrial city Zhuzhou is considered a crucial center for electrical locomotive systems with companies such as Zhuzhou CSR Times Electric. In 2013, sales by rail-related businesses reached 58 billion yuan in the city.

Xiangtan, the hometown of Mao Zedong, has become a center for mining machinery.

Favorable policies

Supported by national policies, administrators at Chang-Zhu-Tan high-tech parks are said they are optimistic about future development.

Currently, the demonstration zones are eligible for six policies that were first implemented in Zhongguancun Science Park in the past few years. The pilot policies cover research results and income rights, equity incentives, tax deductions for research, development expenditures, researcher equity income, project and funding management, identification of high-tech companies and establishment of a national over-the-counter trading market. The demonstration areas will also get policy support based on their real needs, said local officials. The Ministry of Science and Technology has established a coordination team to support the Chang-Zhu-Tan innovation demonstration zones.

New opportunities

The establishment of demonstration areas is a new blueprint for Hunan to achieve better growth for the next decade, building on the "two-oriented society" initiative in 2007 based on resource saving and environmentally sound development.

The effort was later expanded to include another five cities - Changde, Yiyang, Yueyang, Loudi and Hengyang - all within a 90-minute drive of Changsha, Zhuzhou or Xiangtan."As China is adapting to 'new normal' economic growth, Hunan faces challenges, so it needs to promote transformation and innovation," said Li Jianwen, vice-director at the High-tech Office of the Department of Technology and Development in Hunan.

"The establishment of Chang-Zhu-Tan Innovation Demonstration Zones will push Hunan to upgrade industries and optimize economic structure," said Li.

Hu Henghua, mayor of Changsha, said innovation is the city's economic growth engine and enterprises will be the strong driver of innovation.

"Enterprise innovation will push industrial and economic upgrades to enhance regional core competitiveness," said Hu.

Li noted the innovation demonstration areas are similar to China's special economic zones, which benefit from policy support in areas such as financing, administration, industry and business development, and recruiting talent."The government will give those areas the chance to have the 'first-mover advantage', so how to utilize benefits brought by those policies and push development around the province is the most important topic in need of careful consideration," added Li. To support innovation demonstration zones, Hunan is paying great attention to attracting top talent. The three cities in the Chang-Zhu-Tan cluster now has have 54 academics, 73 experts who are recognized by One Thousand Talents Projects and more than 1,000 top overseas returnees. In addition, Hunan's abundant educational resources provide professional support to innovative industries. Together Changsha, Zhuzhou and Xiangtan have 69 universities and colleges, and more than 1,000 provincial-level or above research institutions.

Contact the writer at tangzhihao@chinadaily.com.cn and fengzhiwei@chinadaily.com.cn

(China Daily 03/12/2015 page24)