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CCID Consulting: '3S' Mode Required for China's Industrial Parks

2008-11-12 15:40 1172

BEIJING, Nov. 12 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released a report on the development of China's industrial parks.

Industrial parks have long been a platform for China's industrial expansion over the past few years, but with the accumulation of industrial elements and their rapid expansion, most industrial parks in China are now facing various challenges ahead. Park types are becoming homogeneous, and with most parks under attacks on their extensive exploitation of land resources and effect on the environment, expansion is becoming increasingly difficult with fewer land and resources available. China's manufacturers, as tenants of these industrial parks, are also going through a critical time amid rising costs of labor, raw materials and the environment, and have to bear the unbalance of revenue and expenditure as a result of the decline in international trade. These point to a fact, that the current existence mode of industrial parks, which relies on preferential policy, is no longer sufficient. Current park management mechanism can no more meet the development target of modern industrial parks and the imbalance between park functions and the original fixed target is starting to float. Under these circumstances, CCID Consulting argues that a reset of industrial park functions is an inevitable choice to realize industry promotion for industrial parks.

The Nature of Industrial Park Functions

In the initial development stage, some parks depend on policy support and pay little attention to basic service functions. Some parks fail to provide necessary services to resident enterprises. Imbalance in industrial park functions does not sustain long-term development, and this has become an inevitable problem in the development of industrial parks.

The basic purposes in creating industrial parks are simple: Firstly, industrial parks are built to create a favorable environment to gather necessary resources for technology innovation and pioneering. Secondly, while inviting investments, a more important target is to improve the development of the industrial cluster. Thirdly, industrial parks should enhance the construction of strategy alliance among CEEUSRO and establish public technology platform to accelerate technology innovations. Moreover, industrial parks should enhance the tight cooperation between technology and finance to build multi-level capital market to support technology innovations. Only by returning to these basic purposes can industrial parks develop on the right track in providing the required service functions.

For example, the introduction of the national OTC helps build a multi-level capital market in the Tianjin Binhai Park to facilitate stock transactions among unlisted companies. Tianjin Binhai Park has thus improved its service efficiency for resident enterprises, in a way realizing its basic function as an industrial park.

Feature of Industrial Park Functions

China's industrial parks are at a critical stage of updating and adjusting themselves. Industrial parks must have enough strength to spur the development of the industrial park economy. Hence, the basic functions of industrial park also lie in resource integration among the industrial chain to facilitate enterprises' technology innovation so as to drive the development of industrial cluster and the regional economy.

In southern Jiangsu province, industrial parks are major engines for the development of local economy. The Suzhou Industrial Park, a leading industrial park in the region that long provides a development model for its counterparts, is transferring from investment-driven to innovation-driven, seeing that the foreign-investment-driven and resource-expansion-driven modes are driving many industrial parks into predicament.

In a new economic environment, it is necessary for industrial parks to encourage innovation and to the integration of ecological and economic benefits, and discourage old habits of resource dependencies. Firstly, industrial parks should establish market mechanism where enterprises are the subjects for technology innovation, encourage enterprises to increase investment on R&D, and guide more enterprises to an innovative development way. Secondly, industrial parks should strengthen cooperation among research institutions, colleges and universities, and enterprises so as to create a better innovation atmosphere for enterprises. Finally, the state should provide more support to enterprises and keep encouraging pilot enterprises to assume national and local great S&T projects.

Extension of Industrial Park Functions

The transformation of industrial parks is the mirror of intensive and resource-saving development of regional industrial structure. Serious polarization exists in the transformation of most domestic industrial park. Spillover effects of high quality parks lead to geographic expansion, growing production scale, and even changing administrative relationship. For example, Zhongguancun Science Park has formed dumbbell-shaped industrial chain, in which manufacturing bases are built outside of Beijing, while valuable links such as R&D and sales stay in Zhongguancun. On the contrary, some parks still stay in the low end of industrial chain and take low value-added industries, limiting their own development.

General speaking, not only by achieving industrial interaction, but also by strengthening market cultivation and experience introduction, can industrial parks promote the economic development in surrounding areas through spread functions and drive the development of regional economic cooperation with both interwork and autonomous development. Firstly, industrial parks should strengthen cooperation among all industrial elements, such as governments, enterprises, colleges and universities, research institutions, financial institutions, related agencies, and so on, to breakthrough technology and capital problems, which is the biggest bottleneck in park economy development. Secondly, industrial parks should focus on professional construction to promote clustering development of park economy. By this, industrial parks can make full use of location and resource advantages to realize cooperation among industrial chain and attract more investors. Finally, industrial parks should establish park brands. Brand has been one of key factors in competition. Good brand image is helpful to lift park influence and cohesion. Brand effect of industrial park can drive economy development and promote surrounding areas.

The law of economic development shows that intensive and saving-resource high-tech industries and industry updating are the inevitable choices after considerable accumulation of extensive development of manufacturing industry. Industrial park, carrier of industry transformation and updating, shows the same development trends. It is necessary for industrial parks to return to the nature of park functions to achieve smooth park transformation.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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