shenzhen: china’s city of innovation shenzhen: china’s city of innovation - overview and...
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Shenzhen: Shenzhen: China’s City of InnovationChina’s City of Innovation - Overview and Incentives for R&D
Andrew Pan & Grace ChenFor Zebra Technologies
September 25, 2009 California
OutlineOutline
• What’s Shenzhen?
• Why Shenzhen?
• What Does Shenzhen Offer?
Shenzhen is in the seaboard area of South China neighboring Hong Kong, and in the Pearl River Delta
What’s Shenzhen?What’s Shenzhen?
Shenzhen in Greater ChinaShenzhen in Greater China
ShenzhenShenzhen
Shenzhen in 1985Shenzhen in 1985
Shenzhen TodayShenzhen Today
Shenzhen: Shenzhen: Facts and Figures
• China’s 1st and most successful Special Economic Zone
• Population: 12 million; Area: 1,953 square kilometers
• China’s 4th largest city economy; China’s manufacturing, technology, trade and port city
• New city, high priority for international trade and foreign direct investment
• A clean, safe, recreational city with mild weather and the best living quality in China
• Consumer products manufacturing• High-tech products manufacturing and
R&D– IT– Biotech– Clean-tech
• Logistics center in South China– Port of Shenzhen is world 4th largest
container seaport– Shenzhen Airport is China’s 4th busiest
airport– Shenzhen has an advanced and extensive
highway and railway system
• Regional financial center– Shenzhen Stock Exchange is one of two
stock markets in mainland China
Shenzhen: Shenzhen: Major IndustriesMajor Industries
Why Shenzhen?Why Shenzhen? Element 1: Proximity to Hong Kong
Proximity to HK
Immigration & Migration
Cultural Adaptability
Multicultural
Legal Services Center
Talent Inflow
Open Economy
Multilingual
Financial ServicesCenter
Shenzhen was
established due to its
proximity to Hong Kong.
This historically led to a
great deal of cross-
fertilization due to a
constant exchange of
people, ideas, culture,
business practices and
norms
Why Shenzhen?Why Shenzhen? Element 2: China’s 1st SEZ
China’s 1st
SEZ
Investor friendly
environment
Benefits & SOPs
Infrastructure
Domain Skills
Industry knowledge
Mix of Industry Verticals
Talent variety &
depth
Mix of Manufac &Services Industries
Shenzhen was granted SEZ status in 1980 established by leader Deng Xiaoping
to boost the country's reform process, open up the economy and commence
China’s modernization drive. This resulted in the creation of a liberalized and
planned environment long before it happened anywhere else in China
Combining these 3 elements gives Shenzhen unique location advantages for the ITO/BPO Industry
Elements Shenzhen Beijing Shanghai
GDP Growth Rate (2003-2008) 12.30% 9.20% 10.60%
Population Growth Rate (2000- 2007) 28.60% 9.38% 10.07%
% of Employed Population 76% 49% 48%
Growth in Employed Population (2003-2008) 7.95% 3.16% 2.88%
Pay Difference Index 100 134 122
China’s 1st
SEZ
Investor friendly
environment
Benefits & SOPs
Infrastructure
Domain Skills
Industry knowledge
Mix of Industry Verticals
Talent variety &
depth
Mix of Manufac &Services Industries
Demographic Advantage
Element 2: China’s 1st SEZElement 1: Proximity to Hong Kong
Proximity to HK
Immigration & Migration
Cultural Adaptability
Multicultural
LegalServicesCenter
Talent Inflow
Open Economy
Multilingual
Financial ServicesCenter
Human CapitalHuman Capital
• Shenzhen population has an average age of 28 years
• Shenzhen area has 121 full time colleges and universities with 220,000 graduates every year
• Shenzhen also draws graduates from China and overseas because of the dynamic economy and abundant opportunities
• Shenzhen has 791,000 skillful technical and engineering personnel, mainly IT engineers
• The English level is higher than the average level of the country
• Labor cost is highly competitive
InfrastructureInfrastructure
• Telecom– Shenzhen has 24.3 million phone lines, 5.8 million are land lines a
nd 18.4 million are mobile• Internet Access
– Dial-up networks, broadband networks, IP metropolitan area networks, wireless data networks
– 10 GB/s backbone bandwidth and 2.5 GB/s transmission bandwidth
• Power Supply– Shenzhen’s Municipal Power Authority provides an
uninterrupted source of electrical power to 4.16 million users
0
SEAPORT
177.7 Million
(passenger)
1st in China
20.62Million
(passenger)
4th in China
21.10 Million
(TEU)
4th in the world
LAND PORT AIRPORT
InfrastructureInfrastructure
2007 Figures
Hong Kong International Airport is 45 minutes from Shenzhen with non-stop flights to all major North American cities
What Does Shenzhen Offer?What Does Shenzhen Offer?
• City Policies– Shenzhen Municipal Government’s Provisions on
Development of High-tech Industries– Shenzhen Municipal Government’s Provisions on
Expediting the Development of R&D and High-end Service Industries
• City Incentives
• Exemption and/or rebate of corporate income tax
• Exemption of tariffs and import value-added taxes for self-use imported equipment
• Financial support for enterprises applying for international certification, e.g. ISO, CMMI/CMM, etc.
• R&D expenditure subsidies and tax deduction
• Financial support for enterprises developing products with independent intellectual property
• Loan interest subsidies
• Office space rental subsidies
What Does Shenzhen Offer?What Does Shenzhen Offer?
• Shenzhen City Government attaches great importance to IPR protection, with a strategic position to build the city as an innovation-oriented city
• China’s State Intellectual Property Bureau and Shenzhen City Government signed the "Protocol for Jointly Building a Strong IPR City," making Shenzhen the first city in China to position IPR as a priority (December 13, 2007)
What Does Shenzhen Offer?What Does Shenzhen Offer?
Shenzhen Software ParkShenzhen Software Park
About Our OfficeAbout Our Office
• Based in Los Angeles, CA• Shenzhen’s only investment
and trade promotion office in North America
• Our FREE services:– Provide China/Shenzhen
general/business information
– Consult on China/Shenzhen business policies and incentives
– Facilitate business setup and transaction
– Chinese government relations
– Support daily operation
ContactContact
Please contact us for more information:
Andrew Pan, Chief RepresentativeGrace Chen, Operations ManagerTel: 213-628-9888 Fax: 213-628-
8383E-mail: [email protected]
or [email protected] Web: www.shenzhenoffice.org