Experience & Challenge: Industrial Policies in a Digital World
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1 Experience & Challenge: Industrial Policies in a Digital World Zhou Jianjun Associate Research Fellow, SASAC, CHINA UNCTAD,GENEVA, Zhoujianjun@sasac.gov.cn
2 CONTENS Experience of Chinese Industrial Policies Cases to Understand the Experience Industrial Policies in Digital Word
3 Understanding on Chinese Industrial Policies Diversity in China s industrial policies from horizontal to selective from technological to organizational Long-standing for several decades especially since 1980s Market-oriented, not planning economy Industry Funds With Chinese characteristics Eg. Five-year plan, SOE and Private enterprise
4 Some Cases of Industrial Policies in China High-speed railway Research & development by enterprises, universities, research institutions and others, under the coordination by industrial policies Cooperation & competition: the relationship among core enterprises for research & development Competition pressure by industrial policies through procurement requirements TFT LCD (Liquid crystal panel) Competition among core enterprises Guidance from 5-year plan Research & development support by industrial policies Shenzhen City Market-oriented industrial policies
5 High-speed Railway in China from learning to innovating FUXING 复兴号, fully independent intellectual property rights, Chinese technological standard, takes 4 hours from Beijing to Shanghai
6 SHENZHEN Industrial Policies in Market Economy Shenzhen Hong Kong (China) has been a second-ranked cluster according to The Global Innovation Index 2017 by WIPO From a village to super city, now its GDP is equal to Hong Kong Effective industrial policies in active market is of great importance. Good example to understand industrialization in developing countries, in a digital world
7 Industrial Policies for Industrial Upgrading in Shenzhen From low-manufacturing to OEM ( 代工 ) to ODM From traditional sectors to high technological sectors In 2016, high technological sectors value added has accounted for 66% of industrial value added in Shenzhen. Every industrial upgrading is NOT easy, from low-manufacturing to OEM ( 代工 ) to ODM. Both cover horizontal and selective policies To foster potential enterprises, R&D encouragement, to overcome general technological problems To develop industrial c luster through industrial policies, such coordinationamong industrial c luster, to improve industrial c luster, industrial chains HUAWEI 华为, BYD 比亚迪, DJI- Innovations 大疆, TENCENT 腾讯 have beenthe global players in communication, new energy vehicle, anmanned aircraft.
8 What can we learn from the US industrial policies? Four trillion dollars R&D expenditure by the US government: Venture Investment to foster potential enterprises by SBA, the US government, Resource:The National Science Foundation Resource: David Audretsch and Taylor Aldridge Both horizontal and selective policies in the U.S. A
9 Challenge for Chinese manufacturing Enterprises Internet+ is important. However, manufacture, itself, is more important than INTERNET for Chinese enterprises. The big gap between Chinese enterprises and global leading enterprises in manufacture existed. Leading innovative manufacturing enterprises in R&D, such as Huawei, are very limited. The Average size of Chinese manufacturing enterprises is also smaller than global leading enterprises.
10 Challenge in Digitalization for Chinese manufacturing Enterprises Digitized manufacturing is still in developing in China even if Chinese government has made several initiatives including in recent NPCC meeting. I am currently enrolled in a research program by Chinese Academy of Engineering. Digitalization is still facing some challenges, in industrial Internet, internet of things, new energy vehicles. Some problems related to the HARD WARE to develop Digitized manufacturing, such as core equipment, semiconductor, etc. Others related to the SOFT WARE, such as the industrial standard, etc.
11 Making Industrial Policy Fit for the World A big space standsfor industrial policies for digitalization in China. While research on industrial policies is not sufficient, especially on summarizing successful experience for developing countries. Recent effort by Prof.Stiglitz and Prof.Lin should be paid more attention. Looking forward to detailed discussion and cooperation in the future. Zhoujianjun@sasac.gov.cn Zhoujianjun12@gmail.com
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