Page 174 - 2021 White Paper
P. 174
1 White Paper on the Business Environment in China
1.6 Strategy for aTech-driven GBA
*Courtesy of EY
Highlights
With innovation and technology being 1. A deep dive into innovation and tech
one of the main pillars in Greater Bay Area industryintheGBA
development, a recent deep dive by the China
government on the characteristics of the The Greater Bay Area (GBA) was picked as a
industry should provide an important glimpse national champion for innovation and technology
into the supportive policies to come. development by the Central Government.
Specifically, the Outline Development Plan (“the
We note that while tangible deliverables Outline”) for the Guangdong-Hong Kong-Macao
such as the number of enterprises engaging Greater Bay Area (GBA), released in February
in R&D and patent applications reported 2019, stated that the GBA is going to be shaped
solid increase in the past five years, a “soft into an international technology and innovation
environment” such as manpower and an hub that:
innovative ecosystem is also catching up.
1. strengthens fundamental research
While Shenzhen remains a clear leader in
innovation and technology, the progress of the 2. attracts international talent
other eight cities varied. In terms of the soft
environment, nevertheless, we note that the 3. enhances connectivity between cities
Hong Kong’s comparative advantages in capital
financing and academic research could provide 4. expands new pillars and existing
a boost for the whole region. Its traditional industries with comparative advantage1
industries also present opportunities for catch
up through technology upgrades. In the one-year anniversary of the Outline, the
region has made steady progress with ambitious
The 14th Five Year Plan blueprint released implementation plan laid out, such as Shenzhen’s
in November confirmed technology and new designation as a national demonstration
innovation as a top priority in China’s 2021- area2.
2025 development agenda. With Shenzhen
as its engine, the Greater Bay Area strives In order to closely monitor the development, the
to become an “international technology Guangdong Bureau of Statistics was commissioned
center” by 2025. As Shenzhen reaches a new to study the characteristics of the technology sector
stage of reform, the government will take a in the nine GBA cities in the Mainland in depth3.
multi-pronged approach to eliminate market In our view, the exercise reflects the dedication
barriers, upgrade digital infrastructure, open of the regional leaders to pin down the key areas
to foreign investors, enable transparent and
effective financing models, and expand its 1 Guangdong-Hong Kong-Macau Greater Bay Area –
talent reserve, to keep the area as a national From connectivity to integration, EY report, 2019
leader in high-quality development. 2 The Shenzhen demonstration area - Showcasing Chi-
na’s formula for high-quality growth, EY report, 2020
3 stats.gd.gov.cn/attachment/0/384/384305/2853067.pdf
174
1.6 Strategy for aTech-driven GBA
*Courtesy of EY
Highlights
With innovation and technology being 1. A deep dive into innovation and tech
one of the main pillars in Greater Bay Area industryintheGBA
development, a recent deep dive by the China
government on the characteristics of the The Greater Bay Area (GBA) was picked as a
industry should provide an important glimpse national champion for innovation and technology
into the supportive policies to come. development by the Central Government.
Specifically, the Outline Development Plan (“the
We note that while tangible deliverables Outline”) for the Guangdong-Hong Kong-Macao
such as the number of enterprises engaging Greater Bay Area (GBA), released in February
in R&D and patent applications reported 2019, stated that the GBA is going to be shaped
solid increase in the past five years, a “soft into an international technology and innovation
environment” such as manpower and an hub that:
innovative ecosystem is also catching up.
1. strengthens fundamental research
While Shenzhen remains a clear leader in
innovation and technology, the progress of the 2. attracts international talent
other eight cities varied. In terms of the soft
environment, nevertheless, we note that the 3. enhances connectivity between cities
Hong Kong’s comparative advantages in capital
financing and academic research could provide 4. expands new pillars and existing
a boost for the whole region. Its traditional industries with comparative advantage1
industries also present opportunities for catch
up through technology upgrades. In the one-year anniversary of the Outline, the
region has made steady progress with ambitious
The 14th Five Year Plan blueprint released implementation plan laid out, such as Shenzhen’s
in November confirmed technology and new designation as a national demonstration
innovation as a top priority in China’s 2021- area2.
2025 development agenda. With Shenzhen
as its engine, the Greater Bay Area strives In order to closely monitor the development, the
to become an “international technology Guangdong Bureau of Statistics was commissioned
center” by 2025. As Shenzhen reaches a new to study the characteristics of the technology sector
stage of reform, the government will take a in the nine GBA cities in the Mainland in depth3.
multi-pronged approach to eliminate market In our view, the exercise reflects the dedication
barriers, upgrade digital infrastructure, open of the regional leaders to pin down the key areas
to foreign investors, enable transparent and
effective financing models, and expand its 1 Guangdong-Hong Kong-Macau Greater Bay Area –
talent reserve, to keep the area as a national From connectivity to integration, EY report, 2019
leader in high-quality development. 2 The Shenzhen demonstration area - Showcasing Chi-
na’s formula for high-quality growth, EY report, 2020
3 stats.gd.gov.cn/attachment/0/384/384305/2853067.pdf
174
