Difficult as it is, technical innovation is the fundamental and the only way out for Guangdong to achieve the industrial upgrading. This topic is discussed in today's close-door conference of the GDICC 2005 plenary by the business leaders from AIG, Kodak, Ericsson, Fraunhofer-Gesellschaft, Honda, University of Ferrara, Nokia and Siemens.

Zhong Yangsheng, Executive Vice Governor of Guangdong launched the discussion with his brief account of the ongoing industrial development in the province, saying Guangdong has successfully seized the opportunities of international industrial transfer and successively accelerated the development of three traditional pillar industries. But the development came along with irrational industrial structure, the low organizing level of industries and a disproportional large amount of labor-intensive processing and assembly. Many industries remains at the lower end of the global industry chain. Guangdong is now faced with mounting pressure from the industrial situation.

"Guangdong government understands that innovation is a must for the industrial upgrading," Zhong said, adding that the provincial efforts will go to:

1. accelerate the restructuring of the industrial structure.

2. optimize the regional distribution of industries within the province.

3. improve the technology innovation system with enterprises as main bodies.

4. strengthen technical innovation in various key areas.

Advisors' suggestions on the topic mainly focus on the R&D capacity, IPR protection, supporting SMEs, development of higher-value-added industries, such as service industries.

R&D

Nokia put forward suggestions on R&D capacity enhancement, including to follow the way of independent creativity adopted by USA and Finland and to cultivate the spirit and culture inside the enterprises, which shall be the pillar mind-set to direct the development way. Change "made in Guangdong" into "design in Guangdong" through combining the effort of those advanced enterprises and educational institutes.

Ericsson suggest that the province shall quicken the steps of the construction of the information communication technology facilities, open its value-added service market and attract more ICT experts and overseas scholars. It shall make a strong hold of the cooperation among universities, R&D institutes and the enterprises. And it also needs to absorb more overseas pioneering investments to provide financial support to creative company and new technology projects. Establish a coordination organization for the creative activities. Government's purchase shall be active force to the creativity.

Siemens suggest that the government shall direct the enterprises to establish an endurable and long partnership with the advanced technology companies in the world.

Dr. Bullinger from Fraunhofer-Gesellschaft suggests Guangdong to form up applied R&D institutes to make a full use of the R&D result to the pragmatic utilities. Make the tough problems encountered in industrial sectors as the R&D direction and targets.

IPR protection

Honda, Kodak, Ericsson suggest the province to adopt various measures and methods for a better system to guarantee the IPR protection, let Guangdong be a world-wide safety and reliable region in this aspect.

Supporting the SMEs

Kodak advises Guangdong to make a full use of the resources like education and R&D to formulate professional associations and societies for the mutual communication among the SMEs. The province shall pave favorable paths for SMEs to obtain the bank loans and establish funds to guarantee those qualified creative enterprises.

Service Industry

AIG suggest the province to lower the capital demand for the bank and capital management institutes, to permit stock exchange institutes to establish JVs here, to allow the listed companies in Hong Kong to issue entrusted documents in Shenzhen stock exchange, to encourage Guangdong enterprises to issue bonds in Shenzhen and Hong Kong, and to welcome foreign-funded insurance companies to set up China headquarter in the province.

Other details about the discussion of the three topics include:

>>>Sustainable Development of Ecology: Circular Economy and Construction of Green Guangdong

>>>Sustainable Development of Society: Education Development and Development of Human Resources

Rlated link >>> Governors, advisors brainstorm on Guangdong's sustainable development

Editor: Donald