Chengdu shows its seriousness about innovation

It is true that much of the country’s wealth, industry, dynamic cities and innovation centres is located in the country’s east. However, the fierce battle to attract local and overseas entrepreneurs is seeing many regional cities start to punch above their weight.
Chengdu ranked fourth out of 17 cities in China’s first index for mass entrepreneurship and innovation which gauges innovation according to four key factors – environment, vitality, capability and effectiveness. The General Office of the State Council index published late last year put Beijing in the lead with a score of 127.4, followed by Shanghai (113.85) and Shenzhen (103.87). Chengdu scored 85.26 and was closely followed by Guangzhou (80.78).
Clearly, the Sichuan capital has much to do if it plans to move up to a No 3 position or higher. But its status shows it, along with other regional counterparts, can become an innovation hub in in its own right.
None of this has happened by accident. Major inland cities always faced problems with logistics and distribution, yet the increased ease and speed of sharing knowledge, skills and information and the acceleration of the digital economy have enabled such places to overcome these problems and start to develop their own centres of expertise and start-up cultures. The more Chinese businesses and entrepreneurs prove their abilities, the more people will be inspired to do the same.
Businesses with strong export and manufacturing links may still wish to be located in Shenzhen –  its position as China’s Silicon Valley attracts international companies, such as Google – yet many of China’s leading tech businesses question whether the country needs to follow the US model and develop its own valley, at least one defined by its geographic location. Why do people and businesses need to be located near each other if they can connect digitally? Indeed, this flexible mindset is helping fuel a blistering pace of innovation across the country.
Government policy has also played a catalytic role in fostering these developments. Premier Li Keqiang launched the mass entrepreneurship and innovation programme in 2014. This has supported other polices such as Made in China 2025 and Industry 4.0 and will also help Beijing meet its target for the country to become a global artificial intelligence powerhouse by 2030. While Beijing, Shanghai and Shenzhen may continue to lead business and tech development in China in the near term, you can be assured that regional cities like Chengdu will continue to prove their mettle. The end result will be a stronger, more innovative China.

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