Promulgating the general plan and supportive policies for building a national innovative city will be the most forceful measure to push Shenzhen into a new mode of development. On September 23, 2008, Shenzhen issued four documents concerning the building of a national innovative city, including "The Overall Planning of Shenzhen in Building a National Innovative City (2008-2015)." "This will greatly promote independent innovation and Shenzhen's new and high technology industries, and enhance our future social and economic development," commented a leader of a technological enterprise.

    After years of effort in developing new and high technology industries and promoting independent innovation, Shenzhen has the following advantages in building a national innovative city.

    First, it has an industrial foundation and innovative environment. For three years running Shenzhen has ranked first in its high-technology production value (RMB 700 billion) among China's large and medium-sized cities. It has more than 30,000 scientific-technological enterprises, and of these 3,200 have been verified as new and high technology enterprises. In addition, the proportion of its production value of new and high technology to which it has independent intellectual property rights exceeds 58 percent.

    Second, in recent years the global industrial structure has been shifting in terms of distribution costs, and Shenzhen hopes to become an important recipient of more international innovation resources. A large number of leading enterprises in Shenzhen, such as Huawei, ZTE and BYD, have considerable international competitiveness through exploring overseas markets.

    In addition, Shenzhen has signed agreements on innovation with the Ministry of Information Industry and the Hong Kong Special Administrative Region government, so it will get powerful support in terms of policies.

    "We will strive to build Shenzhen into a national innovative city within five to 10 years, featuring a complete innovative system, numerous innovative talents, many innovative enterprises, active innovative investments, an excellent comprehensive environment, and a developed hi-tech industry," said Deputy Mayor Xu Qin. According to the municipal plan, by 2010 Shenzhen's R & D investment will make up four percent of its GDP, the output value of hi-tech products with independent intellectual property rights will make up 65 percent of the output value of all hi-tech products, and the added-value of hi-tech products will make up 35 percent of Shenzhen's GDP.

The Shenzhen Experience

    Shenzhen evolved from a small fishing village to a modern city within 30 years. What is Shenzhen's experience?

    The key is Shenzhen's audacity in breaking the ties of the traditional planned economy and economic, technological and administrative innovations. As the experimental area for the reforms, Shenzhen broke down old conventions and took many "first steps" for China. Shenzhen conducted the first land use rights auction, set up the first foreign exchange center, instituted a "giving more pay for more work" system, and abolished the system of lifelong official tenure under slogans like "Breaking the iron rice bowl (equilibrium) and the iron armchair (lifelong tenure)."

    In addition, it initiated ownership reform in China and encouraged state-owned enterprises to undertake shareholding reforms. It introduced financial management reform, allowed the entry of foreign capital and banks, established a stock market, promoted the free pricing system, and adjusted housing policy. It also established the country's first bonded industrial park and the first sci-tech industrial park. Shenzhen's exploration and practice of innovation in economic development has made a vital contribution to the building of socialism with Chinese characteristics.

    Shenzhen's innovations have created tremendous material wealth. From 1979 to 2007, its GDP skyrocketed from RMB 196 million to RMB 676.541 billion, and the GDP per capita from RMB 606 to US $10,628. Its annual economic growth for the period averaged 28 percent.

    From 1979 to 2007, Shenzhen spent a total of RMB 456.85 billion on infrastructure and urban construction. The city proper now covers 719.88 sq km. Meanwhile, modern logistics have quickly developed. As one of the major logistics and transport hubs in China, the city attracts commodities, laborers and advanced technology from all over the country. Service industries such as IT, finance and tourism have also got a boost. Nowadays, Shenzhen plays an important role in stimulating the surrounding areas in economic development.