Shanghai Caohejing Hi-tech Park, one of the first batch of economic and technology development zones and hi-tech development zones established under the approval of the State Council, has been built into a development zone with annual output value per square km exceeding RMB0 billion. The development zone recorded sales revenue of RMB27 billion in the first half of 2004, up 47% year on year, and; it registered export of US$2.17 billion, up 102% year on year. My main conclusions are as follows:

I．Stick to the development of high and new technology industry, and make efforts to realize transformation to functional development.

            Caohejing Hi-tech Park, based on the development of high and new technology industry, consistently stick to introducing projects featured by “high-tech, high level and large investment”. As of the end of June 2004, the zone attracted accumulated foreign investment of US$3.3 billion, and recorded sales revenue of RMB216.8 billion, profits and tax of RMB24.1 billion and total export value of US$10.6 billion. There have established 1200 Chinese and foreign high-tech enterprises in the zone, 470 of which are foreign-owned enterprises.

            During the initial period, the development zone, based on local original electronic and instrument industries, established a microelectronics industry bearing international advanced level by introducing, assimilating and attracting foreign capital and advanced technology. Then, the zone further extended to other industries and gradually formed four pillar industries including information industry, new material industry, biology and medicine industry as well as aviation industry.

II. Focus on introducing high-tech multinationals and R&D institutions to promote the utilization efficiency of foreign capital.

             In recent years, Caohejing Hi-tech Park accelerated the introduction of high-tech projects and R&D institutions from multinationals and famous domestic enterprises. so far, in fields such as integrate circuit, photoelectron, computer and new materials, there have been 50 high-tech enterprises established by more than 30 well-known multinationals ranking top 500 companies in the world including Lucent, 3M, Dupont etc.

            In the initial period when moving into Caohejing Hi-tech Park, multinationals mainly focused on high-tech productive projects. And the key technology and equipment were imported from foreign countries. With China’s further opening to the outside world and intensifying competition in product market, multinationals in the zone began to increase their research and development input, and set up technical centers and R&D centers in order to seize market share and strengthen their competitiveness in china, or even in Asian-Pacific and international market. They also collaborated with global R&D institutions so as to transform to the combination of R&D and manufacture from pure high-tech manufacture.

            Industries in the development zone greatly benefited from the aggregation of these R&D centers. Especially in recently years, more and more multinationals have set up their R&D institutions in the zone, mainly focusing on intelligence industries like chip design and software. In 2003, the development zone introduced 212 projects of various types, 70% of which have R&D functions.

III． Improve environment for technology innovation, and push the growth of small and medium technology enterprises.

            The technology and business start-up center of the development zone regulates incubation process under the goal of “systematization, normalization, regionalization and internationalization” in order to improve incubation service and push self-upgrade. CaoHejing software park and southwest software park quest for value-added industrial service; the development zone accelerates the introduction of services resources including management, consultation, training, finance and information etc. and improve social service system for technology innovation and industrialization in the small and medium technology enterprises. It encourages and guides various venture capital into the zone, and establishes a guaranty company to provide financing channel for small and medium sized enterprises. It establishes incubation fund and offers venture capital to support business star-up. It seeks for market operation mechanism for venture capital, in which the technology and business start-up center and natural persons establish a venture capital management company in the form of a joint venture so as to manage capital input into incubated enterprises in the their seed stages. Meanwhile, the development zone carries out the strategic study of “Invigorating the development zone through science and education”, and prepares action plans, as well as attempting to develop a public technology service platform.

At present, a group of vigorous, high-tech small and medium sized enterprises with international competitiveness has mushroomed in the development zone, 90% of which have succeeded in survival.

VI． Scientifically plan and economize land, and promote healthy, normative and sustainable development.

Since the beginning, Caohejing Hi-tech Park has stuck to correctly handling the relationship of land development, construction and protection. Considering the situation of Shanghai and its industry plan, land utilization, municipal construction and service support, the development zone has made a scientific plan on the land use, aiming at “Three embodiments”. Firstly, try to embody the development strategy of the development zone. Relying on service facilities in Shanghai such as life, culture, talent and education facilities, it can use the limited land source for the cultivation and development of high-tech industry. Secondly, embody reasonable functional division and scientific industrial layout. Pursuant to different features of the high-tech industry, it attaches importance to the scientific layout of various industry lands in the general plan. Thirdly, embody the importance of the environment protection. In the recent years, in order to strengthen management and control of the environment of the zone, it has continually improved environment management by creating an ISO1400 environment management system and an “ISO1400 national demonstration zone”. And make preparation for the development of recycling economy and ecological industry park.