Strategic Analysis of the Construction of Regional Innovation System

Strategic Analysis of the Construction of Regional Innovation System
in the City of Jinan
MA Li, ZHAO Yanhui, CHU Xiaomei
School of Management, University of Jinan, Jinan, P.R.China, 250022
[email protected]
Abstract: From the current situation and the trend of development of regional innovation system in the
city of Jinan, this article analyzes the main problems of the construction of regional innovation system,
and proposes some specific strategies which are suitable to the actual circumstances of strengthening the
regional innovation system in Jinan City.
Keywords: Regional Innovation System, Jinan, Strategy
1 Introduction
With the deepening globalization and the advent of the era of knowledge economy, the construction of
regional innovation system has become one of the key emphases of improving the capacity for
innovation in local area. Nowadays, every region is working on establishing and improving the regional
innovation system, aiming at strengthening the economic capability and technological competitiveness
in that area. China is a country with a vast territory, which makes the cultural resources and the level of
scientific technology and economic development vary from different urban area. It is an important
practical problem how to put forward a targeted strategy of constructing regional innovation system on
the basis of diverse characteristics in different regions, and then promoting regional economic
development.
2 Status Quo of Regional Innovation System in the Downtown Area of Jinan
Jinan is the capital of Shandong province, which is also the center of developing and proliferating
economic development and technological innovation. Several institutions of higher learning are located
here, including Shandong University, Shandong Normal University and University of Jinan, etc. In
recent years, in order to promote the integration of production, teaching, and research and the
combination of science and technology and economy, Jinan has built cooperative relationships with
Chinese Academy of Sciences (CAS), Chinese Academy of Engineering (CAE), Tsinghua University
and Shandong University. Besides, the city has stronger advantages of geology and resources.
2.1 The Enhancement of Competence for Innovation and the Scientific and Technical Personnel
According to statistics, in 2008, Jinan carried out 993 plans of scientific research, which had increased
32% compared with that of 2007. It also authorized 4,571 patent applications, 3,455 patents of invention
and acquired 49 national and provincial prizes of science and technology progress, which had increased
6.5%. The number of personnel engaged in scientific and technological activities continuously extend,
whose qualities have been enhanced. Except the growth of the number of personnel, the cohesive force
of talents has been strengthened greatly. Take Jinan High-tech Development Zone as an example, up
until now, it has attracted nearly 400 Chinese students and scholars studying abroad, researched and
developed more than 440 high-tech projects, and cultivated more than 900 high-tech products.[1] All of
these above have fully illustrated that the scientific and technological ability for innovation and the
qualities of personnel in Jinan have achieved great improvement.
2.2 Enterprises Have Gradually Become the Main Body of Innovation
Enterprise is not only the one benefiting from creativity, but the initiator of creativity. At present, the
enterprises’ research and development institutions in Jinan have been upgraded, and the national
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engineering laboratory has fulfilled the zero breakthroughs. There are 2 newly affirmed national
enterprise technical centers; 3 newly affirmed provincial enterprise technical centers; 25 enterprise
engineering technical research centers and 12 software engineering technical centers. Besides, 159
enterprises have passed through the affirmation of high-tech enterprise; 10 enterprises have been
contained in the first batch of innovative creative units of Shandong province. More than 510 projects
have obtained 376,000,000 RMB national and provincial subsidies. Thus, it is obvious that the
consciousness and capability of innovation of enterprises in Jinan have been largely promoted, which
have become the main body of innovation.
2.3 The Development High-tech Zone Is Speeding Up
After 18-year development, Jinan High-tech Zone has possessed strong comprehensive economic power
and potentiality of future development, and speed up technological innovation. Three main distinctive
industries of electronic information transportation equipment and pharmaceutical manufacturing have
been established, and the leading industrial cluster of high-tech has begun to take shape. Besides, the
software industry in the Zone has made rapid development. Software development and information
technique service companies headed by NEC Software, ISW and Eastdawn gather and develop in the
Qilu Software Park and the International Innovation Park of Information and Communication. These
companies have become the backbone of IT industry in Jinan. The future development purposes of the
Zone are to run ahead in the development zone of the City, to be at the front row in the development
zone of Province and to move obviously in national high-tech zone.
3 Main Problems Restricting the Construction of Regional Innovation System in
Jinan
3.1 Regional Innovation System is Imperfect
Regional innovation system construction in Jinan is still in the initial stage. There are many
imperfections which mainly rest in the fact that science and technology are out of line with economy.
Barriers among diverse interest groups still exist, resulting in the difficulty to promote the optimization
of technological innovation elements. Institutions of research, development, agent and management lack
connection, coordination and interaction. These problems manifest in the development process of
scientific agent companies and increase the difficulties of the flow of technological elements.
3.2 Technological Innovation Mechanism Using Enterprise as Main Body Is Unsound
During the period of transformation of market economic system, enterprises face great changes in
internal and external environmental. Considering the survival and development issues, most of the
enterprises that constrained by a variety of conditions, focus on the pursuit of short-term economic
benefits without the strategic vision of development in the long-term. They lack of required importance
in technological innovation. Compared with other advanced cities, the investment of funds and scientific
research is still relatively insufficient. Consequently, the efficiency of technological innovation is low,
and revenue decrease, resulting in a vicious circle. Most of the cooperation between scientific research
units of enterprise and institutions are not long-lasting, stable and efficient.
3.3 Investment of Innovation Capital Is Relatively Low
Lacking innovation capital is a common phenomenon in the development progress throughout the
country. Only by the longitudinal comparison has Jinan made remarkable increase of the scope and
depth of investment. However, horizontally compared nationwide, especially compared with other 15
sub-provincial cities with strong comparability, Jinan has too much disparities. Due to great investment
of innovation capital, Xiamen and Qingdao which are at the same level as Jinan have made rapid
economic progress. It has been revealed that science and technology could drive economy.
3.4 Development of Science and Technology Service Agents Is Imperfect
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Experiences in developing market economy have proved that the construction of the main body of
innovation is indivisible with the establishment of supporting service system. Strengthening the
construction of agent service system for science and technology could help combination of the upper
reaches with the middle reaches of the chain of science and technology, as well as the close integration
of economy and science and technology. So far, the types of service provided by the science and
technology agent institutions in Jinan have increased. However, compared with experiences in
constructing science and technology agent institutions in developed countries and in domestic advanced
cities, the number of institutions in Jinan is still not enough, and the number of employed is still
insufficient whose qualities is not good. And the level and quality of service need to be raised.
4 Strategies of Strengthening the Construction of Regional Innovation System in
Downtown Area of Jinan
4.1 Push Forward Further the Development of Industrial Economy
In April 2007, the Ninth Party Conference of Jinan emphasized that industrial economy is an important
support in promoting a sound and rapid economic development in Jinan. It is also an important strength
in raising the economic power and potential development of this provincial capital city. How to promote
the industry of Jinan to make sound and fast development becomes a problem which is concerned from
bottom to top in the city. Jinan should take advantage of being a provincial capital city, positively push
forward the implementation of the development program of Jinan Metropolis Circle, and realize the
development balancing different regions. The authority has launched a series of policies to attract 47
companies which named 100 strong business enterprises in and out the city, and encourages them to
establish group headquarters, regional headquarters, research centers and sale centers or investment
companies to improve the economic development of Jinan. Furthermore, the authority should encourage
the enterprises in Jinan to invest in other cities in order to realize the collective development, broaden
the companies’ business scale and strengthen their competition, and finally enhance the development of
the coordinating cities.[2] Meanwhile, we should pay our efforts to optimize industrial structure and carry
out the interactive development between high-tech industries and light industries.
4.2 Promote the Strategic Cooperation of Industry, University and Research Institute
Improving the cooperation among industry-university-research institute is an assurance to promote and
perfect the regional innovation system.[3] Enterprises, universities and research centers have different
advantages in market, talents, technique and capital. Enterprise, which is close to the market, is the
supporter of terminal product and service. Academic thought in the universities is active, owning
abundant human resource and high level the technologists. Research institutions have special advantages
in the application study and have a great deal of research instrument equipments. Currently, the
cooperation among industry-university-research institute in Jinan is mainly the program cooperation, but
lack of strategic cooperation. Therefore, Jinan should strengthen the establishment of research centers or
industry (technique) research institute. It’s better for us to build up and perfect technological innovation
system using enterprises as main body, and realize the share of complementary advantages and
resources.
4.3 Strengthen the Government's Investment and Macroscopic Readjustment and Control
The government department, as a basic node of regional innovation network, is not the main body which
directly involves in innovation activities, but plays an irreplaceable role in terms of actively trying to
create regional innovation environment, effectively regulating the local market behavior, and developing
the potential resources for innovation within the region.[4] Especially under the imperfect market
economy conditions in China, the market’s role of motivating for innovation can not be effectively
played, leading to the lack of innovation in the supply. Therefore, government should play a greater part
in innovation than in developed countries.[5] In order to ensure the need of the development of science
and technology on the side of financial, the authority in Jinan should intensify efforts to invest the
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scientific and technological activities, and establish a multi-channel and multi-leveled scientific and
technological investment and financing system through the guidance of policy. In this way, the level of
scientific and technological progress in Jinan can be improved rapidly and achieved leap-forward
development, which makes catching up with advanced regions be possible. In a word, the Government
should accurately locate the position, set up a rational macro-control policy, and provide an
inexhaustible motive force for sustainable development to build a sophisticated regional innovation
system and the regional economy.
4.4 Develop and Expand Industrial Clusters with Local Distinctive Features
Industrial clusters refer to an economic phenomenon that enterprise of the same industry and related
industries and supporting industries geographically highly concentrated. For Jinan, an important
regional core city, developing industrial clusters to enhance industrial competitiveness and urban
competitiveness of Jinan is an extremely important way. The industrial development of Jinan should be
in accordance to the principle of "do something or do nothing", making the characteristic industry bigger
and stronger. Namely, on the basis of local realities, choosing the industry which has the most local
advantages to focus on developing products, and come into being brand advantage as soon as possible.
At the same time, we must vigorously develop industry associations and other agent institutions,
improve intermediary service system, and improve the self-management and self-improvement
capabilities of industrial clusters.
4.5 Seize Opportunity and Focus on Developing Cultural Creative Industries
In recent years, cultural and innovative industries began to be received attention and achieved great
development in China. Shanghai, Beijing, Guangdong and other economically developed regions, the
cultural and creative industries rapidly rise strongly, they have become a new highlight of cities and
regions industrial development.[6] Cultural and innovative industries have the characteristics of
knowledge-intensive, integrated strongly, and value-added high, which plays an important role for
raising the level of regional industrial development, optimizing industrial structure, and promoting the
economic and social development.
Jinan, is located in the middle of Shandong Province, which is at the forefront of economy growing into
global markets zone in China—the chain-ring of Bohai economic circle, which is the regional central
city all around the country. Its good regional advantages are the perfect condition for developing cultural
and c innovative industries, Jinan should make full use of every opportunity, such a national event as the
eleventh National Games which had been launched with "Jinan creativity" and showed the cultural and
innovative achievement of "Shandong characteristics". With great efforts to cultivate a cultural
enterprise group possessing independent intellectual property rights and the ability of competitions, we
should enhance the cultural strength and cultural image of Jinan City, and speed up the development of
economic and the building of regional innovation of Jinan.
4.6 Perfecting the Tourism Function of Jinan City
Improving the tourism function of Jinan city can not only enhance its tourism image and function, but
also there is great significance to promoting the full development and the building of innovation systems
all over the whole Jinan, on the basis of the actual situation in Jinan. The following aspects should be
done to improve its urban tourism function.
First of all, we should make it clear the orientation of urban tourism function, and consolidate the brand
with the city's characteristic. Spring is the brand of Jinan and the image of Jinan, which is also the
lifeblood of Jinan. Therefore we must continue to develop the spring culture of Jinan. On the basis of
emphasizing the long history and culture of Jinan City, we should also highlight the rapid changes of
Jinan City— the capital of Shandong Province.
Secondly, mutual cooperation should be learned by different cities, focusing on overall marketing.
Urban tourism is an open and complex system, There are not only competitions between cities but also
interdependence with each other, such as "Landscape sage travel line" which runs through three places
of Jinan, Taian and Jining has a strong power of attraction and market-driven. To this end, it is necessary
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to strengthen the cooperation among regions, and make trans-regional tourism development, So as to
enhance the combined quality of tourism products and promote the role of complementary of varieties
of services and facilities in the region.
Finally, we should pay attention to developing exhibition economy, carrying out exhibition tourism.
Exhibition industry and tourism industry should reflect the background and complement with each other.
Jinan should pay attention to improve the mechanism operated by government and enterprises in the
development of exhibition tourism, enhance planning leadership, and make a rational distribution for
exhibition facilities. Furthermore, we should promote the function of displaying, improve the quality of
exhibition and establish a lasting power of influence and appeal of flagship exhibition. Thus, it’s better
for us to bring up talents for exhibition industry, and provide intellectual protection for the development
of exhibition tourism.
5 Conclusion
The construction of regional innovation system has played a more and more important role in the
process of regional economic development. Jinan, the capital of Shandong Province, is the center of
politics, economy, culture, finance and education of the province. It is also an open coastal city and one
of the 15 sub-provincial cities in China. In recent years, Jinan has made great progress both in economic
development and urban area innovation. However, compared with other advanced cities, there is still a
certain gap. Jinan should try its best to construct laws, policies, mechanisms and cultural environment
which would be transformed from regional innovation and innovative achievements into productive
forces.
We hope to use the regional innovation system construction as an opportunity, and finally realize the
positive interaction between scientific and technological innovation and socio-economic development.
Besides, we could enhance the economic dynamism and competitiveness of Jinan, and make the
strategic goal of building a well-off society in an all-round way come true early!
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[3]. Lou Jianren, Shi Yongfeng, Xu Changming. Accelerating Strategic Thinking of the construction of
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