Analysis on Regional Science and Technology Innovation System

Analysis on Regional Science and Technology Innovation System
LAI Yifei,
WANG Guanglei
(Economics and Management School of Wuhan university, Wuhan 430072,Hubei,China)
Abstract This paper analyses the characteristics of Hubei science and technology innovation system
and suggests some modes of Hubei science and technology innovation system. Furthermore, a model of
Hubei science and technology innovation system and a frame of Hubei science and technology
innovation service system are proposed.
Key Words Hubei science and technology innovation system, innovation dimensionality, model of
innovation system
1 Introduction
Since China was admitted to WTO more than 5 years ago, domestic markets have been opening wider to
the outside, economic and social reforms have been deepened in order to meet the WTO conventions.
Thus, Chinese economy has achieved sound and steady growth. In the past more than two years, Hubei
Province, situated at the central China, has made painstaking efforts to keep pace with the national
reform and opening-up move, and, so far, made tremendous achievements. Nevertheless, there still
remain some obvious problems: the reform situation and opening-up magnitude in Hubei Province not
matching the resources and location advantages; the industrializing level of Hubei science and
technology research achievements still remaining low; the imbalance of Hubei economic structure and
the backwardness of industrial structure still remaining unsolved; Hubei enterprises being small in size
and weak in power; Hubei economy advantages being vague, faced with pressures coming from the
western and eastern regions.
Establishing a regional system of science and technology innovation is the threshold of the Hubei
economy leap growth. With the regional system of science and technology innovation available, Hubei
industrial structure can be optimized, the traditional industries in Hubei can be upgraded and
transformed, and high-tech industries can grow to be backbone industries. Accordingly, Hubei economy
will be upgraded to be innovation-driven economy and gain continual superiority in competition brought
about by the economic globalization[1].
2 Types of Regional of Science and Technology Innovation Systems
Depending on the role played by different elements in science and technology innovations,
different types of systems are seen. The first type emphasizes the role of “innovation parties”, namely,
business enterprises, the universities, research institutes and others, to form a network within a given
region. Shanghai, the centre of the Yangtze Delta, has effectively and efficiently utilized the important
roles of these innovation parties and has built up a manufacturing based driven by the use of
technologies. The second type places emphasis on various “innovation resources and ingredients” such
as science and technology, talents, funds, policy environment, innovation atmosphere and other elements,
within the region. Shenzhen shows that, by effectively and efficiently utilizing the important roles of
“innovation resources and ingredients”, it may become more sensitive to the requirements of the market
and is quick to adopt innovations to suit the market. Yet another type relies on the system of science
and technology itself. Beijing, as the central node in the national technology innovation network, can
make use of the technologies from all over the country and fully supported by its own regional
technology innovation system .
In this paper, the focus of attention will be placed on the last type. By definition, this type of
regional science and technology innovations possess several distinctive features. Firstly, the region may
be administrative or economic-geographic. This paper opts for the geographic definition because it
indicates the openness of the regional system based on science and technology innovations and is
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analogous to the existing regional systems in China such the Southeast China Economic Region,
Yangtze Delta Economic Region and Bohai Economic Region. Next, the role of the “innovation parties”
is highlighted. Only with the active participation of non-governmental parties to promote market-driven
innovations will the regional system of science and technology be vigorous. Thirdly, in a regional
innovation system, the resources to be optimized and mobilized are to be acquired from both within and
outside the region. This has been especially important to those regions where “innovation resources”
such as information and talents were scarce as in the case of Shenzhen or Suzhou. With the growth of
modern information technology and communication, innovation resources are increasingly flowing
across regions. The emergence of new organizations such as “virtual strategic leagues” would
particularly expedite such cross-regional flows. Lastly, a regional system of science and technology is
first and foremost an independent system as well as a subsystem of the national innovation system.
However, existence of a combination of regional systems does not constitute an effective national
system. This would call for certain special objectives and inner mechanism[2].
3 Hubei Science and Technology Innovation System:
Some Characteristics
The major characteristics of the science and technology innovation system of Hubei are that it is
hierachical, multi-dimensional, and industry-specific.
3.1 Hierarchical Structure
The Hubei science and technology innovation system is composed of three levels. On the first level
is a subsystem of national science and technology innovation system. At this level, the innovation
system aims primarily to promote commercializing and marketing achievements of scientific and
technological research findings. To serve the needs Hubei’s economic and social development, and
based on the current industrial base and resources of the province, the mid- and long-term plans of
science and technology innovations will be met on this level.
The next level are the science and technology innovation systems at major cities such as Wuhan,
Huangshi, Yichang, Jingzhou and Xiangfan. With ample funds, resources and information, major cities
play a specially significant role as centres of innovations. The major cities of China account for one-half
of the country’s industrial production, 70 per cent of its GDP, 80 per cent of national revenue, 85 per
cent of value-added production of tertiary industries, and 90 per cent of higher education and scientific
research . The expansion and growth of industrial production, technological innovations and
professional and managerial expertise in the major cities and their outward diffusion will have a
tremendous impact on adjoining areas. The Shanghai economic region is a case in point. Similarly, the
Wuhan economic region can also play a central role in accelerating development in surrounding areas.
At the apex of the hierarchy of the Wuhan economic region are the High-tech Development Zone,
Economic Development Zone and University Science and Technology Garden located in the major cities.
Both Wuhan and Xiangfan possess several provincial high-tech development zones. Playing a sterling
role are the photo-electronic information industry based in Wuhan, dubbed China’s Optics Valley, and
China’s Drug Valley in Gedian. It is at this level that the development zones should play a leading role
in science and technology innovations in the province by means of regulating their functions and
structures and fostering flexible mechanisms and policy environment. Science and technology
innovations would be further facilitated if the construction of Wuhan University Town is accelerated, the
resources of various universities in Hubei are combined, and if “virtual strategic leagues” are
established to expedite collaboration on innovations across regions[3].
3.2Multi-dimensionality
Historically and in view of its resources and nodal location, Hubei has always served as a
transportation centre and for the distribution of goods and commodities in central and western China.
Hubei has superior infrastructure, personnel, technology and market availability. However, there are
weaknesses in the relative absence of private enterprises and also the export-oriented economy and
branded goods. There are other constraints that have an adverse influence on the emergence of a science
and technology innovation system in Hubei. There is an absence of a special mechanism to
commercialize the findings of scientific research, and the institutional framework is too weak to provide
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the necessary incentives to encourage technological innovations.
There are three dimensions in the Hubei science and technology innovation system. The first refers
to the innovation parties comprising the government, business enterprises, universities, research
institutes, financial institutions, the market and entrepreneurs. The government leads technology
innovation; the universities and research institutes conduct research on new technologies; financial
institutions support the funds for research; the market creates the potential demand for these innovations;
and the entrepreneurs adopt, commercialize and popularize the innovations. The development of a
science and technology innovation system would proceed on a sound footing in Hubei only when the
combination of parties is present and an atmosphere of mutual support is fostered through which each
party plays its vital and essential role in the complex process.
The second dimension refers to that of systems. According to the characteristics of the science and
technology innovation system, a system may exist as a subsystem within a larger set of systems. The
Hubei science and technology innovation system, as a subsystem of the national system, should
integrate the Hubei innovation system at its apex, the industry innovation system in the middle level,
and individual enterprises at the “grassroot” level. The innovation system should organize and integrate
the range of activities that would nurture a favorable atmosphere for the introduction and adoption of
innovations. These activities would include the way of thinking, institutional organization, enabling
mechanisms, management, services and the entire ambience that induces the introduction and the
adoption of innovations. These innovation activities would then be linked together as an integrated
system within the larger national system.
The third dimension refers to the innovation chain. At the regional level, the chain of science and
technology innovation is basically a closed system that is concerned with the conversion of technology
into processes or products, application of these processes or marketing of these products and related
procedures (Fig. 1). The absence of any step will lead to the breakdown of the innovation chain. Hence,
all the parties involved in the innovation system are indispensable. The parties engaged in research and
development (R&D) are concerned not just with science and technology innovation but are also
involved the efficient operation of various departments within the enterprise.
Technology
drive
Information
flow
Marketing
drive
Technology
i
flow
Concept
product
Product
development
Industriali
-zation
Marketing
service
drive
Policy
drive
Finance
flow
Fig. 1:
A Regional Science and Technology Innovation Chain
3.3Industry-specificity
Hubei economy is characterized by some special features: a large number of famous universities
and institutes, strong manufacturing industry featuring automobiles, steel, textiles, high-tech industries
of optics, biochemistry and medicine, and sufficient energies featuring hydro-electric power.
The Hubei science and technology innovation system is concerned with research, development,
production and marketing. It is therefore inseparable from the development of specific industries,
market competition, and the economic and social development of the province. In due course, an
industry scientific and technology innovation system with characteristically local features would appear.
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Indeed, scientific and technological research at the provincial level is crucial to provide the backbone of
the science and technology innovation system that is so essential for the promotion of modern
development.
4 Hubei Science and Technology Innovation System: A Theoretical Model
Innovation involves sound innovation coordination. Hubei science and technology innovation system is
no exception. Since Hubei science and technology innovation system is based on Hubei resources and
regional eco-social development demands and also is a subsystem of national innovation system, Hubei
science and technology innovation shall be regulated by national innovation policy and shall be in line
with national macro-industrial policies and development trend. But, considering the fact that regional
economies are booming in the world while China’s regional economies resemble greatly each other, the
characteristics of Hubei science and technology innovation system shall be emphasized. Regional
economy development suggests that self-development innovation strategy can be surely applied in the
regions with strong power of science and technology, such as Beijing, Shanghai. In the region not strong
in science and technology (e.g. Shenzhen), the approach of “introduction, digestion, absorption and
innovation” shall be applied. Hubei is rich in science and technology resources, so it can mainly depend
on self-research and development strategy to convert superior science and technology resources into
superior market and economy and to foster the core competitiveness of Hubei enterprises.
Therefore, the establishment of Hubei science and technology innovation system shall emphasize
its own characteristics, identify with the innovation parties of government, enterprise, university,
research institute, financial institution, trade and middleman, and depend on the comprehensive
coordination within the system. The innovation shall be carried out through the whole innovation chain
from science and technology achievements to the market. Considering the hierarchicality of Hubei
science and technology innovation system, the radiating roles of such major cities as Wuhan, Yichang,
Huangshi, Jingzhou and Xiangfan shall be played. And then with the support of high-tech industry
development zone, university science and technology garden, Wuhan’s China Optics Valley and
Gedian’s China Drug Valley, together with sound science and technology middleman services, Hubei
science and technology innovation can be promoted.
The theoretical model of Hubei science and technology innovation can be designed as in Fig. 4.
Hubei science and technology innovation service system consists of science and technology
administration bodies and service bodies on the provincial and city basis.
Global science and technology innovation system
National science and technology innovation system
Hubei province science and technology innovation system
Science and technology innovation
implemention system
Science and technology
innovation information system
Finance
institute
Research
institute
University
Enterprise
Government
Finance
information
Market
information
Technology
information
Policy
information
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Hubei science and technology innovation service system
Customs quarantine
Technology supervision institute
I&c and tax institute
Accounting firm
Law firm
Consulting and assessing institute
Capital market
Talent market
Technology market
Science and technology information
Enterprise incubator
Productivity promote center
Fig. 2 Theoretical Model of Hubei Science and Technology Innovation System
5 Conclusions
How to establish Hubei science and technology innovation system is a complex systems engineering,
which involves technology, talents, fund, enterprises, research institute, service system, policy
environment, innovation atmosphere and other elements.
Technological achievements are the basis of Hubei science and technology innovation system;
talents the backbone; enterprises, universities and research institutes the innovation parties; fund the fuel
to the running of science and technology innovation system; service system the bridge and band, playing
an indirect role in spreading technological achievements and researching; policy environment the
impetus to and guarantee of Hubei science and technology innovation; innovation atmosphere the
favorable environment for science and technology innovation. Hubei science and technology innovation
atmosphere shall be fostered by further emancipating thoughts, overcoming small agricultural economy
and satisfaction from being well-fed, breaking the blockage among different areas, sectors and
industries.
Moreover, Hubei governments on different levels shall play a leading role, directing role and
facilitating role in the science and technology innovation system, and shall be a provider of fine
environment. While serving the innovation parties, the government on different levels shall attach
importance to infrastructure construction, information network construction, product standardization. As
a result, high innovation efficiency, fine innovation coordination can be achieved and Hubei science and
technology innovation can be effectively promoted.
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About the author: Lai Yifei (1964-) is a PhD holder and an associate professor with Business School of
Wuhan University. His main interests are teaching and research of science and technology management.
TEL 027 62095725 13971488971
Email: [email protected]
ZIP 430072 ADD:Economics and Management School of Wuhan university,Wuhan ,Hubei,China
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