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An Assessment of the Business Environment for High-Tech Industrial Development in Shanghai

Author

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  • Wen Hong

    (Center of Urban Planning and Environmental Mangement, 8/F, Knowles Building, The University of Hong Kong, Pokfulam Road, Hong Kong)

Abstract

The author presents the analysis of a survey of 500 high-tech enterprises in Shanghai which was designed to examine the local social, political, and economic environment in which high-tech enterprises operate and compete. Information sought in this survey comes in two kinds: the characteristics of high-tech enterprises; and their assessments of specified elements constituting their business environment. Survey findings suggested that state-owned or quasi-state-owned enterprises are still the leading players although local private enterprises and transnational corporations are becoming indispensable actors in high-tech industrial development in Shanghai. Among these enterprises, those which are locally based are mainly small and medium-sized enterprises and are in the start-up stage of business; they are domestically oriented and are not strong enough to exploit foreign markets. Foreign-based enterprises in Shanghai are, however, mainly subsidiaries, branch plants, or assembly lines, rather than regional headquarters, suggesting that Shanghai occupies a relatively low position in the international division of labor. The second part of the survey suggests that, in boosting the development of high-tech businesses, Shanghai achieves tangible objectives and improves the physical environment efficiently. Nevertheless, it is still quite weak in some soft dimensions, such as dynamic entrepreneurial culture, adequate business-support services, sophisticated educational and professional systems, comprehensive legal framework, etc. However, these dimensions are key components of innovative milieu in which technological innovation and entrepreneurial activities are facilitated and nurtured.

Suggested Citation

  • Wen Hong, 2003. "An Assessment of the Business Environment for High-Tech Industrial Development in Shanghai," Environment and Planning C, , vol. 21(1), pages 107-137, February.
    • Handle: RePEc:sae:envirc:v:21:y:2003:i:1:p:107-137
    DOI: 10.1068/c0210
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    References listed on IDEAS

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    1. M. Stare, 2001. "Advancing the Development of Producer Services in Slovenia with Foreign Direct Investment," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 19-34, January.
    2. Giovanni Dosi & Keith Pavitt & Luc Soete, 1990. "The Economics of Technical Change and International Trade," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1990, March.
    3. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
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    Cited by:

    1. Marcus Conlé & Margot Schüller & Jan Peter Wogart, 2008. "Innovation im Staatsauftrag: FuE-Institute Indiens und Chinas im Vergleich," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(2), pages 162-183.

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