Guangdong has been taking the lead in the high-tech development of the country in 1990s.

In the year of 2001, Guangdong's GDP surpassed 1,000 billion yuan for the first time. Science and technological products accounted for as much as 45 percent. The comprehensive strength of Guangdong's science and technology has been among the best of the provinces in China for three consecutive years. The innovative capacity of science and technology ranked the third place in China, just following Shanghai and Beijing. Its three indicators, namely, the technological innovative capacity of the enterprise, R&D investment of the LSE and MIE (large and medium-sized enterprises) and international competition power of the industry, rank the first place in the country.

 By the end of 2001, there have been 1,407 high- and new-tech enterprises in the province. The output value of the high-tech products reached 350 billion yuan and the annual growth rate averaged 33 percent. The export volume of the high- and new-Tech commodities was worth $22.3 billion dollars, accounting for 48 percent of the national total. In tens years from 1991 to 2001, the output value of the high- and new-tech products increased by 43 times with the increase speed ranking first in China.

Goldman Sachs, the world famous investment bank predicted, the next "Silicon Valley" will emerge in Guangdong.

A high-tech industrial belt is emerging along the W-shaped trunk road in the Pearl River Delta. As one of the top ten high-tech industrial belts in China, it boasts six state-level and three province-level high-tech development zones, two national software zones, twelve transferring bases of national "863" projects and one state-level university science and technology zone here.

The high-tech industrial belt in the Pearl River Delta covers such cities as Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zhongshan, and Dongguan.

The profound W-shaped Belt seems to tell that it is both the window of China's opening up and reform in the past and the engine of Guangdong's march towards the world today.

After ten years of development, the Pearl River Delta, the former processing base of processing raw materials on clients' demands, assembling parts for the clients and processing according to the clients' samples, or engaging in compensation trade, has become the largest high-tech industrial belt of the country. It possesses 8 tops in Guangdong, even in China and Asia.

Its industry is the largest in scale. In the year 2001, the output value of the high-tech products in Guangdong reached 350 billion yuan, of which 325.5 billion yuan was created by the high-tech industrial belt in the Pearl River Delta. It is the largest high-tech industrial belt of the country in terms of the production value.

It has the fastest growth rate. In 1992, the output value of the high-tech products in the Pearl River Delta only accounted for 80 percent of Shanghai's. But by the year of 2000, the figure was 1.59 times that of Shanghai.

It has the largest export volume. In 2001, the export volume of the high-tech products made in the Pearl River Delta was around 130 billion yuan, accounting for 40 percent of China's total, excelling other high-tech industrial belts in the country.

Guangdong is the largest manufacturing center of IT products. In the year 2001, the output value of electronic and telecommunication equipment industry amounts to 291.777 billion yuan, rising to one of the biggest IT manufacturing bases in China as well as Asia.

It is the largest base for porcelain electronic parts. In the field of new materials, the Pearl River Delta has 50 percent market share of porcelain electronic parts, 30 percent of synthetic fibre, and 25 percent of organic silicon.

It is the largest biomedicine base. In the field of biological technology, the Pearl River Delta accounted for 50 percent of the biomedicine approved for sales, and over 50 percent of the output value.

It is the largest base for intelligentzed, energy-saving and environmental friendly electric appliance. The market share of such products is 60 percent in the country. The electronic medical products accounted for 68 percent.

It has the largest number of national high-tech development zones. The Pearl River Delta Industrial Belt, one of the ten in the country, boasts the largest number of high-tech development zones at national level.

The brainstorming leads to the brainchild while innovation promotes flourish. As the economic power having emerged since 1980s, Guangdong had to face the challenge of surpassing itself and creating new strengths at the end of 1990s. With the guiding principle of "Science and technology as the primary productive force", Guangdong has taken a new road of combining science and technology with economy. Enterprises have played a leading role in technological innovation. The province set up 157 state-level and provincial engineering R&D centers. The production value of the enterprises with affiliated R&D centers accounted for 20 percent of the whole province. The number of patent applications submitted by enterprises in Guangdong took up 20 percent of the national total.

Research institutions in Guangdong, after experiencing structural reforms have also taken part in the economic construction. The commercial application of the research achievements has become increasingly successful. Since 1995, the transaction volume of technological products has been up by 50 percent annually. The economic benefits created by the research are estimated to be 200 billion yuan. In the year 2001, tax revenues contributed by science and technology topped 228.6 billion yuan, accounting for 22 percent of the GDP in Guangdong.

Governments at all levels in Guangdong attach great importance to the legal and administrative protection of patent, intellectual property rights and labels. By protecting intellectual property rights, the enterprises have become more competitive and paved the way for technological innovation.

According to the experts and scholars engaged in China urban and regional economy research, the Pearl River Delta has become the world's largest light industrial base. Its production capacity has surpassed American East Coast as well as Europe. The GDP of the Delta region (excluding Hong Kong and Macau) has accounted for 77 percent of the provincial total, reaching 700 billion yuan.

At present, 160, 000 international experts work in all walks of life in Guangdong. They have brought with them the advanced technology and management. The researchers in Guangdong Academy of Agricultural Science have accomplished several leading research projects along the international experts.

Guangdong is becoming more economically dynamic in the 21st century.

The economy in Guangdong pushed forward by the knowledge-based innovation and high-tech-based innovation will go from strength to strength.

Editor: James