Research On The Development Of High And New Tech Industry In Shenzhen

In the last dozen years, high/new-tech industries in Shenzhen have grown rapidly, and become the 'pillar industry' of the city, accounting for nearly half of its GDP. Yet meanwhile, many problems have also arisen, and some of them have long been neglected due to the great achievements of high/new-tech industries. With China's accession into WTO, and the five-year period of protection closing soon, high/new-tech industries in Shenzhen, and in China as a whole, will directly withstand face the impact of the invasion of their counterparts in European and American advanced countries. As far as Shenzhen is concerned, it also face the threat of the cancellation of various favorable polices. Therefore, it is needed to study the problems with the advancement of high/new-tech industries in Shenzhen, and this paper is just a discussion in this respect and proposes some solutions to the problems identified.This paper consists of five sections. Section one introduces the classification of high/new-tech industries, generalizes about their features, and on this basis, delimits the high/new-tech industries this paper discusses. The term here specifically refers to 'China's high/new-tech industries', i.e. knowledge-intensive industries with a higher density of research and development. It includes, not only the internationally recognized high/new-tech industries such as aeronautic/astronautic manufacturing, computer and office facility manufacturing, pharmaceutical manufacturing, and communications facility manufacturing, but also such new industries defined in China's Torch Plan, as biological engineering, software engineering, new materials/energy industry, and marine industry.Section two analyzes the basic tendency of high/new tech industry in China, pointing out that technological innovation has become a decisive factor in enhancing the competitiveness of high/new-tech enterprises. It is also observed that high/ new-tech industries worldwide tend to cluster and agglomerate, and the intensity of research and development tends to increase; such tendencies are of significance to the further growth of high/new-tech industries in Shenzhen.Section three, making use of plenty of materials and relevant data, analyzes the status of high/new-tech industry in Shenzhen. High/new-tech industries have become the 'pillar industry' in Shenzhen; a mechanism of technological innovation featuring a 'triple-hierarchy structure' has started to evolve; private sci-tech enterprises have become the major force engaged in technological development, as well as a significant force of high/new-tech industries.Section four analyzes the problems arising in the growth of high/new-tech industries in Shenzhen. Major problems include: the capacity of technological innovation is inadequate; the structure of high/new-tech industries is not quite reasonable; the system of investment of venture capital is far from perfect; the current advantages of the industries start to decline; the business incubators remain small in number and have yet to function at higher levels.In light of the problems identified, the last section, applying the theories of innovation and of industrial organization, using a combination of quantitative and qualitative analysis, along with comparative analysis, proposes some solutions. First, the government should innovate its behavior, taking the lead in serving the growth of industries. Second, More efforts should be made to advance technologies. Shenzhen should build a new platform for technological innovation, i.e. Shenzhen Institute of High and New Tech Industry Research. Third, the mechanism of investment of venture capital should better, and "second board" should be established. Fourth, the system of business incubators need to be improved, and high-level incubators are to be built. Finally, there should be more efforts to promote the balance growth and clustering of high/new-tech industries.