Long history of being an industrial area since 1950s

In June 1999, the State Council of China officially approved the request to Expedite the Building of Zhongguancun Science Park

Duplicate the idea from Silicon Valley

Aim: to make the park a first-rate science park in the world within 10 years

Area: 217 sq km (~1/5 of Hong Kong)

Known as the ‘’electronics avenue’’

biggest science park in China -makes a contribution of 60% of the total industrial growth of Beijing -accounts for 18% of the total income of all the 53 national hi-tech parks high concentration of scientific and technological institutions and intellectual resourcescomposed of five science zones: Haidian Zone Fengtai Zone Changping Zone Electronic City Zone Yizhuang Zone Sub-parks: (Haidian Park, Fengtai Park, Changping Park Electronic Town, Yizhuang Park, Desheng Park, Yonghe Park Shijingshan Park, Tongzhou Park, Daxing CBP)

Raw materialsMarketLabourTransportInstitutionalTechnologyEnergyBehavioural

Close to nearby universities and institutes

39 institutions of higher learning

Well-known universities :

Beijing University and the Tsinghua University

(best known for science and engineering)

encourage students and professors to start their business and set up their

own companies for R&D in the park

213 research institutions

For example: the Chinese Academy of Sciences (CAS)

the Chinese Academy of Engineering (CAE)

state-level laboratories and important engineering and technology centers

Over 489,000 technicians are employed

Pleasant living environment

Nice-working environment

Beautiful Scenery

For example, The Summer Palace, The Yuanmingyuan Park and Xiangshan

to attract and retain good quality professional workers

Over 12,000 new and hi-tech enterprises in the estate

For example: Legend, Zhongguancun Science and Technology,

Tsinghua Tongfang, Netease

1500 R&D centers and hi-tech companies

set up by or invested by renowned overseas transnational companies

Such as: IBM, Microsoft, Mitsubishi, Siemens, NEC

Breed up many local enterprises like Stone Group (co-operated with Peking

University), Founder Group (2nd largest personal computer

manufacturer in China & spun off Chinese Academy of Sciences),

Lenovo Group (the fourth largest computer manufacturer in the world)

Baidu and SINA Corporation are two companies known by China watchers in the West that were born and bred in Zhongguancun

accounts for 18% of the total income of all the 53 national hi-tech parks

1. Provision of infrastructure, transport and utilities

High accessibility:3rd Ring Road, 4th Ring

Road and 5th Ring Road, Beijing Capital International Airport and railway

Sufficient facilitiesHospital, stadium, hotel,

shopping mall, universities etc.

2. To attract foreign investmentFavorable PolicySelf-use equipment and supporting technologies, accessories and reserve parts shall be exempted from import duty and import linkage tax. Incomes from transferring self-developed technology shall be exempted from the business tax.

3. To promote IT industriesThe development of the hi-tech industry, modern manufacturing and other projects invested under encouragement are encouraged.

4.To provide industrial landTo simplify the procedure for providing industrial land, land transfer fees, urban infrastructure construction expenses and partial administrative institutional fees are abatted

5. To encourage innovation《 Zhongguancun science park regulation 》 since 1-1-2001: - To protect intellectual property - To confiscate pirated software CDs

1. Lack of leveraged buyout channel enterprise was difficult to raise capital

2. Fail in protecting intellectual property

《 Zhongguancun science park regulation 》 is ineffective

Numerous hawkers nearby selling pirated software produced in the science park

Discourage enterprise to research and develop

3. Serious traffic congestion near the science park

Discourage professional engineer to work in the park

4. Location mismatch between R&D and manufacturingZhongguancun is the R&D centreManufacturing base of electronic products and computers is in Guan

gDong Inefficient to implement the new product developed in Beijing but pro

duced in GuangDong (ShenZhen, Dongguan)

5. International companies move their centre away from Zhongguancun

52 international IT companies such as Intel, HP, IBM, Cisco set up their headquarter in Jiaoyang instead of Zhongguancun

Jiaoyang is close to foreign consulate, and enable companies for international communication

Jiaoyang provides the best infrastructure in Beijing

• 6. Guangdong being a competitor of Zhongguancun

• Guangdong has a lot of famous universities that provide many IT professionals(e.g.Guangdong university of Technology, Zhongshan University)

• Guangdong is close to Hong Kong and ShenZhen that attract more investment than Zhongguancun

• The manufacturing base of computer and electronic products is in Guangdong, it is more convenient to link up R&D and manufacturing