CHINA> Special Reports
HSP: From bucolic neighborhood to hi-tech powerhouse
By Zhao Bian (China Daily)
Updated: 2009-09-10 08:51

HSP: From bucolic neighborhood to hi-tech powerhouse
The lakeside software industry park is home to a number of the nation's top IT companies.

With a small brook running through it and served only by a two-lane road, it was a neighborhood that was home to some of the nation's top universities.

Such was the scene of Zhongguancun in the 1980s.

Today the bucolic image is only a sweet memory to long-time locals. Gone is the serenity that embraced the area for half a century.

But even the most nostalgic can still take pride. The past two decades brought great changes that include much more traffic and frenetic development, but also profound energy as the sleepy enclave became a powerful hi-tech engine for the entire country.

Home to the first State-level hi-tech zone in China - and still at the very top in the nation - the area is now called Zhongguancun Haidian Science Park (HSP).

It evolved from the Zhongguancun electronics street in the mid-1980s when a number of traders dominated the scene. Quite a few small tech firms then emerged, tentative operations begun by nearby universities, research institutes and even individuals.

Today the booming electronics trade is still there, but it is now housed in the high-rise Hilong and Dinghao buildings.

And some of the fledgling tech firms have developed into internationally renowned names such as Lenovo.

In May 1988 the predecessor of HSP - approved by the State Council as Beijing New Technology Industrial Development and Experimental Zone - was founded in the Zhongguancun electronics street and its nearby neighborhoods to become the first State-level hi-tech zone in China.

20 years of growth

In 1997, the zone was named the Haidian Experimental Zone of Beijing New Technology Development Zone.

In 1999, when the Beijing New Technology Development Zone was expanded to cover five industrial parks in several districts in Beijing, the name was changed to Zhongguancun Hi-tech Zone.

The Haidian Experimental Zone was then renamed Haidian Science Park, the core of Beijing's hi-tech development plans.

Covering a 133-sq-km core area in Zhongguancun and 300 sq km of adjacent area, today's HSP has a dozen industrial parks, including the Zhongguancun eastern section, Zhongguancun Science Town, Tsinghua University Science Park, Peking University Science Park, Zhongguancun Software Park, Zhongguancun Environmental Technology Park and Shangdi Information Industry Park.

During the past two decades, HSP has maintained average annual growth of more than 30 percent.

In 2007, the total business revenues in HSP reached 407.7 billion yuan, 5.1 times more than 1999. Its total industrial output value hit 108.8 billion yuan, growth of 180 percent from 1999.

Its local companies like Lenovo and Founder are expanding their global businesses, while 42 Fortune companies including IBM, Microsoft, Intel, France Telecom, AMD and Google have established operations there, including regional headquarters and research and development (R&D) centers.

Its pillar industries, such as software development, integrated circuit design and network communications, all lead in the country. The output value of software development and integrated circuit design comprise one-third of the totals in those industries in the nation.

HSP is also renowned for its human resources. In 2007, among all its 514,000 employees, 43 percent held bachelor's degrees, 9.9 percent had master's degrees and 1.6 percent had PhDs.

It is also a favored site among returning overseas Chinese scholars to develop their careers and start up their own businesses. In 2007, HSP was home to 7,448 returning scholars, accounting for 1.4 percent of the workforce.

In May this year, the Zhongguancun Hi-tech Zone was approved by the State Council to build the national model innovation base. HSP is at the core of the base, an initiative that marks yet another a new era of in HSP's development.

New era of development

HSP: From bucolic neighborhood to hi-tech powerhouse
Past and present: Construction along Zhongguancun Street that began 20 years ago resulted in a modern urban devopment specializing in hi-tech industries.

As model for all the hi-tech development zones and parks in China, HSP is expected to foster a number of champions in industries and nurture a range of homegrown enterprises with globally renowned brands and international competitiveness.

HSP will launch a series of experiments including financial reform oriented to hi-tech industries, governmental reform in public services, the establishment of a national technology transfer center, a technology intermediary services center and a hi-tech human resources development center.

The technology transfer center - a trading and exhibition venue for new technologies and products - is expected to facilitate cooperation between the nation's R&D operations and all kinds of production enterprises.

Using the park's R&D of the innovation capacity, HSP expects to further promote the development in electronics, computer chips, software, next-generation communications, next-generation Internet, digital TV, biomedicine, new materials, environmental technology, alternative energies and creative industries. Plans call for a number of large projects in these fields.

Local authorities also expect new industrial associations to play a bigger role in this initiative. New associations include technology, standards, industrial and marketing alliances among enterprises, higher learning institutions and research institutes. Such associations are tasked to set national and international industrial standards.

Aiming to build an international science park, the authorities will also give support to local enterprises' globalization initiatives. Local government's support will include organizing international forums, exhibition, trade fairs, sponsoring international research programs and helping enterprises to attract international professionals.

More information about HSP:

Investment promotion: Tel: 800-810-1697, 86-10-88498510; Fax: 86-10-88498290

Hotline for corporate affairs: 96181

Website of Haidian Investment Promotion Bureau: www.investhaidian.gov.cn

Website of Zhongguancun: www.zhongguancun.com.cn, www.ibridge.com.cn