Development of Innovation & Technology in the Greater Bay Area Hinges on "Joint Forces"
CHINA - Media OutReach - 15 October 2018 - Cushman & Wakefield, a global leader in commercial real estate services, recently released the fourth report in the Research Series of Greater Bay Area (GBA) -- "Innovation and Technology Drive Development: Research on Innovation and Technology Industry and Property Opportunities in the Greater Bay Area". The report focuses on Hong Kong, Shenzhen, Guangzhou and Dongguan and analyses the development status and main advantages and disadvantages of the innovation and technology industry and property opportunities in each of these four cities. It also offers an outlook on the coordination and cooperation of different cities as the GBA further develops.
Hong Kong, Shenzhen, Guangzhou and Dongguan and their respective edge
The report said that innovation and technology industries of Hong Kong, Shenzhen, Guangzhou and Dongguan have begun to establish their respective competitive advantages:
Hong Kong: The meeting point for global innovation elements. As one of the top three global financial centres, Hong Kong is the meeting point for global innovation elements, high-end talents and corporate institutions. At the same time, thanks to its international business model and service system, it is undoubtedly the most important gateway city for high-tech enterprises from the GBA to connect with the international market. Hong Kong's financial infrastructures are highly developed.
Many fintech companies have set up office in the city which in turn helps bring global capital to the innovation and technology industry of the Greater Bay Area. Hong Kong has a good number of internationally top-ranking universities and high-end scientific research institutions, with outstanding research talents and extensive experience in technological research and development, intellectual property and related fields. This helps drive innovation in Hong Kong and throughout the GBA.
Shenzhen: The dynamic frontier of innovation and technology. In 2010, high-tech industry was established as one of the four pillar industries in Shenzhen. The industry has outstanding achievements after years of development. The added value of the industry accounts for over 30% of GDP for years. It is undoubtedly the first growth point and the first pillar industry in Shenzhen's economy. In the long process of developing high-tech industry, Shenzhen has formed a system based on R&D enterprises, market-oriented and supported by academic research that facilities the creation and application of innovative technologies.
As a frontier of reform, Shenzhen has produced a number of outstanding world-class and national top 500 enterprises in just over 30 years of development. These industry giants have not only played a huge leading and driving role in industrial development, but also have helped attract upstream and downstream enterprises in the industry to cultivate an incubation platform and market environment. Vibrant enterprises are the foundation for industrial development. Whether it is the number of leading innovation and technology enterprises currently based in Shenzhen, or the development trend of the emerging unicorn enterprises, we have every reason to expect that Shenzhen will become the leader of innovation and technology in GBA.
Guangzhou: The internal drive and hub of innovation in the GBA. As an important industrial base in the country, Guangzhou has 35 of the 41 main industrial sectors in China. Its manufacturing and service industries are the most developed and most comprehensive among cities in southern China. At the end of 2017, the production value of the three pillar industries of automobile manufacturing, electronic product manufacturing and petrochemical manufacturing industry successively broke through the RMB100 billion levels, which drove the rapid development of Guangzhou's overall economy.
At the same time, Guangzhou actively cultivates strategic emerging industries. The manufacturing industries, which is represented by automobile, electronic products and petrochemicals, were transformed and upgraded by the wave of technological innovation, which helped accelerate the development of emerging industries such as IAB (Information technology, artificial intelligence, biomedicine) and NEM (New/Renewable energy & materials). Together, they help advance Guangzhou to the league of international innovation hubs. Meanwhile, its total number of colleges and universities ranks third in China which is a continuous supply of talents. High-quality scientific research institutions also form an important part of the "Innovative Brain" of Guangzhou and facilitate the development of innovation and technology in the GBA.
Dongguan: From "Made in China" to "Created in China". In 2017, the total GDP of Dongguan City surpassed RMB758.2 billion, an increase of 8.1% over the previous year. It was above the average GDP of the Guangdong province and China, and ranked fourth in the province and 19th in the country. However, as economic development enters a new stage, upgrading of industrial structure has become a must for sustainable development.
In particular, the development of high-tech manufacturing industries represented by smart manufacturing plays a core role in the transformation of "Made in Dongguan" to "Created in Dongguan". In the context of developing the GBA, the geographical advantage, strong industrial base, ample industrial and policy support have attracted more and more enterprises to gather there. Dongguan is positioned to be the advanced manufacturing center of the GBA, the application ground for the IT and R&D achievements in the region and features heavily on the development chain of the innovation and technology industry.
Weakening boundaries between cities facilities efficient flow of production factors
Author of the report, Xiaoduan Zhang, Director and Head of Research, South & West China of Cushman & Wakefield said, "In the process of integration of the GBA, thanks to the establishment of '1-hour traffic circle' and the overall planning of the GBA coordinating agencies, the flow of various factors of production will be freer and more efficient. The degree of industry concentration, talent availability, transportation convenience, preferential incentive policies, occupancy costs, supporting incubation facilities etc. are all important factors that affect the layout of enterprises. Different cities and even different districts with their unique characteristics in the GBA will gradually establish their own competitive advantages and attract the most suitable industries and enterprises under market forces, which ultimately will lead to reasonable layout of different segments of different industries or industrial chains in the GBA and ensure its healthy, sustainable and efficient development."
(Note: Industrial parks from top: Nanshan Hi-tech Park, Hong Kong Science Park, Tianhe Intelligence City, Guangzhou Science City, Dongguan Songshan Lake)
Cities complementing each other will create "bigger force"
Jiang Binghe, Senior Director, General Manager of Business Marketing, The Greater Bay Area Services and Free Trade Port in Hainan of Cushman & Wakefield, said, "The various cities and districts in the GBA need to leverage their own advantages, while making full use of different resources for synergy and integration, so that the difficulties and problems encountered by various industries in the cities can be resolved."
"The integration of the GBA depends on building a more efficient and inter-connected transportation system, breaking barriers to the regional development policy system, and to change the existing development pattern through guidance and stimulation, which will ultimately promote a free and efficient flow of important production factors in the GBA. This will not only support the development of the GBA but will also bring more opportunities for the development of various sectors and various fields of real estate."
Hong Kong is a springboard for GBA research achievements to reach the world stage
John Siu, Managing Director, Hong Kong of Cushman & Wakefield, said, "As a melting pot for talents with free flow of information, Hong Kong has attracted the attention of more and more fintech companies. An increasing number of them have chosen to set up office in Hong Kong, some even in core business areas in order to increase market share and to raise their corporate profiles. This will create a bigger mass of the fintech industry in the city. In addition, government-funded projects such as the Science Park and the Lok Ma Chau Loop will attract start-ups and local enterprises to enter the GBA and expand the scale of the industrial market. These are important conditions for nurturing Hong Kong into an international center of innovation and technology. Hong Kong, as the "Super-connector" in the GBA, will be able to bring important research achievements in the Bay Area to the international arena."
Please click here to download the full report (Chinese version only).
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Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. Across Greater China, there are 20 offices servicing the local market.
The company won four of the top awards in the Euromoney Survey 2017 & 2018 in the categories of Overall, Agency Letting/Sales, Valuation and Research in China. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, advisory and other services. To learn more, visitwww.cushmanwakefield.com.hk or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china)