Download Targeted Public Policies in Shanghai’s Path to a Knowledge- Based Economy

Targeted Public Policies in
Shanghai’s Path to a KnowledgeBased Economy
Weiping Wu
Associate Professor
Urban Studies, Geography and Planning
Virginia Commonwealth University
December 2004
Research Focus and Content
„
Primary purpose is to identify targeted public policies, at
both national and municipal levels, that will allow Shanghai
to compete and prosper in new knowledge-based economy
„
Overview of related literature
„
Recent changes in China’s national innovation system
„
Key policies and initiatives proposed and implemented in
Shanghai
„
Future challenges facing the city
Overview of Literature
Pillars of a knowledge-based economy
„
econ. and inst. regime that provides incentives for efficient
knowledge use, knowledge creation, and entrepreneurship;
„
educated and skilled workforce that can create and use
knowledge;
„
dynamic information infrastructure that can facilitate effective
communication, dissemination, and processing of
information; and
„
effective innovation system that can tap into global
knowledge, adapt it to local needs, and create new knowledge.
Overview of Literature
Vitality of innovation shaped by national innovation system
„
A complex network of agents, policies and institutions
supporting the process of technical advance. This system,
specifically, includes a nation’s intellectual property (IP)
protection system, its universities and its research
laboratories.
„
More broadly, it may also include many other subsystems
and processes, such as norms of competition and a nation’s
financial and monetary policies.
„
Two distinct models – United States and Japan
Overview of Literature
Local innovation capacity and support environment
„
Universities are incubators for startup firms, as places where
knowledge is patented, where specialized research is housed,
and where scientists and industry work together on product
commercialization.
„
Investments in higher education infrastructure predict
subsequent city and regional growth far better than
investments in physical infrastructure.
„
Critical role played by public policy in fostering a local
innovation system.
China’s National Innovation System
Vertically integrated system prior to 1979
„
Research institutions under Chinese Academy of Science
(CAS) and its subordinate, provincial-level academies,
primarily responsible for basic research, research in key
industrial areas and advanced technology.
„
Research institutes within universities, with both teaching
and research roles.
„
Industry-specific research institutes within different
ministries responsible solving specific applied problems as
well as introducing new technology into industry.
China’s National Innovation System
Drastic reforms after 1979
„
Encourage closer relationship between research and
production by breaking vertical coordinating functions and
encouraging horizontal, market-based ties between research
institutions/universities and enterprises.
„
Nationwide R&D funding as percentage of GDP increased
sharply, but remains focus on product or process development.
„
Ministry of Science and Technology’s “863” high technology
R&D program and CAS’ “Knowledge Innovation Program”
are particularly decisive in promoting higher levels of
achievement in research.
China’s National Innovation System
„
Torch Program was begun in 1988 primarily to jump-start
high-tech industrial development. Industrial enterprises
now perform more than 60 percent of the nation’s R&D.
„
Research institutes are encouraged to launch commercial
spin-offs and research staff is placed on contracts.
Universities have assumed more active commercial roles
over the past 15 years.
„
Science parks allow R&D institutions and corporations to
cooperate and interact by placing them in close proximity
to each other.
Targeted Public Policies in Shanghai
„
Building of Shanghai’s municipal innovation system, which
has included targeted public policies in five broad
categories:
„
nurturing R&D institutions
„
increasing investment in R&D
„
building a support infrastructure to facilitate
commercialization of innovation
„
developing an adequate regulatory and legal framework
„
investing in human capital
Augmenting R&D institutions and human capital
„
Encourage growth of private or non-state technological
enterprises, through a broad array of incentives in
financing, taxation, intellectual property protection,
commercialization of innovation, and support services.
„
A new effort to reform the university system and
universities have now become the cradle for young research
scientists. Annual enrollment for local students in higher
education has been increased substantially.
„
Research institutes, particularly those specializing in
applied science and development, are beginning to develop
some commercial linkages.
Creating support infrastructure
„
A five-year key project has been launched to integrate all the
circuits and pipelines for telecom services into an underground
broadband pipeline.
„
To appeal to foreign investment and high-tech business,
several new science parks have been created. Development of
high-tech industry is spearheaded by Zhangjiang Science Park.
„
Established a network of service centers to facilitate
commercialization of innovations, including a technology
exchange center, a high-tech commercialization service center,
a science and technology consulting service, and several hightech enterprise incubators.
Shanghai’s Prospects and Challenges
„
Legal system is still inadequate for supporting innovative
activities and promoting inter-organizational linkages.
Most generally, the problem arises from an incomplete
system for assigning, exercising and protecting property
rights.
„
True venture investments or funds, particularly those with a
pure focus on technology, are still rare. This is
compounded by the drying out of public funding for
research activities.