Reported by the Xinhua News Agency on June 26: Innovation is a solution-a sidelight on innovation-driven development of Guangdong
Reported by Zhao Donghui, Zhou Qiang and Ma Xiaocheng from the Xinhua News Agency
Innovation is the “key” of economic growth. As the largest economic province of China, Guangdong pursued quality and benefit on the basis of innovation and regarded innovation as a solution to improve product competitiveness and break through the bottleneck of industry development in recent years. For one thing, traditional industries radiate vitality in the fiercely competitive “red sea” market through technical transformation. For another, some enterprises “change lanes and overtake other cars” in advance and seize the initiative in the “red sea” market.
Stand firm in traditional industries and micro transformation makes “trees sprout”
From building up a fortune by OEM to mastering core technologies and contending for the global market. Through more than 40 years of development. Guangdong Jiangfen Magnetic Materials Co., Ltd. located in Jiangmen achieves sales volume of ferrite accounting for 15% of the domestic market. In 2012, Jiangfen Magnetic Materials became a supplier of Italy MANGA by superior performance and lower price.
Chief Engineer Zhan Zhenhua said, in order to occupy the commanding height of the magnetic material industry, the Company established R&D center in 1998 and invests about 10% of sales volume in R&D every year. Upgrading from 4 series to 8 series, products have been applied to ordinary toys and household appliances as well as automobiles and medical equipment.
Only the innovator can win the market
Liby Group “finds a way out” in the cleaning product industry through continuous innovation. “How to remove fishy smell on hands after eating seafood? We launch fresh ginger dishwashing liquid. Washing powder is difficult to dissolve in northern China, we launch cold water washing powder.” Said Xu Xiaodong, Vice-president of Liby Group, “Innovation-based product segmentation plays a critical role in the development of enterprise.”
“Like many enterprises, Liby just followed market rules when it was just established. However, we can never be the first.” Said Xu Xiaodong, “We can turn from a follower to an innovator of traditional industries only through accurately mastering market demand.”
There is no underdeveloped industry but underdeveloped technology.
To optimize the inventory, a technical transformation centered on technical improvement, equipment renewal and model innovation emerges in Guangdong. Data of Guangdong Economy and Information Technology Commission shows that Guangdong’s investment in technical transformation increased from 186.76 billion Yuan in 2014 to 389.17 billion Yuan in 2016 with an average annual growth rate of 35.6%. Over ten thousand enterprises above designated size have carried out technical transformation.
The impetus of traditional industries is stimulated by innovation. In April, industrial enterprises above designated size in Foshan achieved an added value of 151.551 billion Yuan with a year-on-year growth rate of 8.1%. Cai Jiahua, Executive Vice Mayor of Foshan City said that it was because traditional advantageous industries rose again at an acceleration rate and they have become a major force of economic growth.
With a late start and a high starting point, Liby “changes a lane” and explores the “blue sea” market
Jumping out of the “red sea”, more and more Guangdong enterprises enter the broader “blue sea” based on technical R&D and through leapfrog innovation.
Jiangmen Dier Hanyu Electric Co., Ltd. is a world famous supplier of drainage pump of washing machine and dish-washing machine. Replacing copper with aluminum and preventing oxidization through sealing, it becomes an industry pioneer and occupies 30% of the global market.
““Since I realized that the drainage pump field crushed into the “ceiling” three years ago, we have started to explore emerging markets closely related to drainage of household appliances.” President Shi Huashan said. We applied core technology of drainage pump to the closestool industry, developed intelligent closestool for bowel irrigation and realized “changing lanes and overtaking cars”.
Many Guangdong enterprises are no longer satisfied with traditional and emerging industries but focus on “future industries” and distinguish themselves in such creative fields as 3D printing, hovercar and metamaterial.
“Yihang 184”, a pilotless hovercar developed by Guangzhou Yihang Intelligent Technology Co., Ltd., has undergone flight test in Dubai. After passenger selects a destination on the map, the hovercar will fly to it as directed. Roads and Traffic Authority of Dubai announced in February that “Yihang 184” will be put into operation as soon as possible.
As upgrade of products speeds up nowadays, many Guangdong enterprises seize the opportunity and surpass the formers. Guangzhou Mide Science and Technology launched world’s first 24 inch HD naked eye 3D display this year, which attracted extensive attention in Las Vegas Electronics Show.
Fan Hang, Founder of Mide Science and Technology , said that 3D display is the most vibrant next generation display technology which will be a common display technology platform and they just follow cutting-edge trends. The display technology proves that we can enter a fantastic virtual world by naked eye only.
“Customize” innovative solutions and accelerate formation of industry innovation center
Date shows that R&D input of Guangdong brand-name enterprises accounted for 2.8% of main business income on average in the past three years, quadrupling that of general enterprises of Guangdong Province and reaching the average level of developed countries (regions).
Chen Quan, President of Guangdong Excellent Quality and Brand Research Institute, said that famous brand is the ultimate goal of brand building. To encourage enterprises to focus on innovation input, Guangdong famous brand evaluation shifts the focus from market share and enterprise scale to “innovation” and raises the proportion of innovation to 1/4.
With continuous layout of strategic emerging industries and other high-end industries, Guangdong gradually makes up industrial short slabs, builds a perfect industry architecture and accelerates the formation of a market-oriented innovation system.
The foundation of building innovative economic system is to strengthen the dominant role of enterprise in innovation. Not only is Guangdong deeply implementing high-tech enterprise cultivation plan and highlighting full coverage of R&D institutions of large industrial enterprises, but also it breaks barriers of systems and mechanisms in developing the role of innovative subject and helps enterprises with “efficient” innovation. R&D input of Guangdong enterprises accounts for 90% of national R&D input.
Huang Ningsheng, Head of Guangdong Department of Science and Technology, deploys the innovation chain based on industry chain, improves the capital chain based on innovation chain and realizes system integration and planning &coordination based on policy chain. Persisting in “integration of four chains” means to carry out top design of innovation-driven development and solutions for national scientific and technological strategies.
In 2016, more than 8000 high-tech enterprises newly emerged in Guangdong and more than 7000 were included in the reserve. The total capacity reaches up to 19000. “By virtue of sound industry chain advantages, Guangdong is accelerating construction of a national scientific and technological industry innovation center and putting forward new solutions for transformation and upgrading so as to give play to the supporting role in national innovation-driven development.” said Huang Ningsheng. (End)
