Advances in Social Science, Education and Humanities Research, volume 176
2nd International Conference on Management, Education and Social Science (ICMESS 2018)
Research on the Development of Industrial Parks in
China and Suggestions for Future Policies
Tianjiao Yi
International Business School of Shannxi Normal University
Xi’an, Shannxi, China
Abstract—Based on the former research into industrial parks Though have different name all around the world, but high-
at home and abroad, in this paper, we define the concept of tech industrial development zones are generally based on
industrial parks, and classify some of the existing industrial intellectual resources, aiming at the development of new
parks in China into different types. With the classical economics industries, facilitating the combination of scientific research,
theory, we analyze and explain the intrinsic economic motivation education and production.
for the formation of the industry parks. Further study shows that
the development of industrial parks in China can be divided into Characteristic industrial park: the leading industry in the
four stages, and then we present the current status of the characteristic industrial park relies on the unique local
development of two typical kinds of industrial parks in China. resources, the industrial park can give full play to the
Finally, conclusions are drawn, and policy suggestions to enhance spreading effect to lead regional economic growth. This kind
the competitiveness of industrial parks in the future are given. of industrial parks including logistics parks, cultural creative
industry clusters, ecological agriculture park.
Keywords—Types of Industrial Parks; Formation Mechanism;
Evolutionary Stages; Policy Suggestions Other types: in addition to the above types of parks, there
are export processing parks, free trade zones, bonded areas,
I. THE CONCEPT AND TYPE OF THE INDUSTRIAL PARK border economic cooperation zones, etc.
Industrial park is essentially a form of industrial clusters,
II. THEORETICAL BASIS
considering the definitions of industrial park from different
angles, in this article, we define industrial park as follow: in a Seeking efficient and sustainable development model has
country or a region, industrial enterprises from the same field been one of the main themes of industrial development ever
gathered into cluster through the government intervention or since the industrial revolution. In the middle of the 19th
spontaneous formation, this area usually has complete century, the industrial activity started to centralize in a certain
infrastructure and good social environment, with high area, isolated from residential areas and agricultural areas.
intensification degree and distinctive characteristics. There are These industrial activity areas gradually known as industrial
obvious industry association between the enterprise, which is park. In the end of the 19th century, the British economist
an effective way to promote regional economic development. Alfred Marshall put forward the concept of "industrial cluster"
We divide the industrial parks into five main categories. to explain this phenomenon for the first time. Later in the 20th
Industrial park: industrial park is an agglomeration of many century, economists form all over the world advanced the
industrial enterprises, usually with a larger development area, theory of industrial clusters. Michael E.Porter put forward the
surrounded by supporting infrastructure and having certain "diamond model" to demonstrate industrial clusters
location advantages. Industrial parks set series of standards competitiveness, and discussed how cluster promotes the
and limits in planning, land utilization and entry criteria. competitiveness. Industrial clusters are very important to
stimulate the growth of regional economy, also the crucial
Economic and technological development zone: economic factors in the process of industrialization. Industry cluster
and technological development zone appeared during the theory is the theoretical basis for the development of industrial
period of transformation in economic system of our country park.
which attracts companies with preferential policies, good
environment business, foreign capital and advanced Industrial park enhances the overall competitive advantage,
technology. The product is mainly export-oriented and the promote the production elements concentration and industrial
enterprises welcome foreign investment. The dominant upgrade by gathering the enterprises in the same industry,
industry is mostly modern manufacturing industry. related producer services and supporting enterprises. It
generates the effect in economies of scale, reduces the
High-tech industrial development zone: hi-tech industry management and transaction costs, strengthens the connection
development zone is led by the knowledge-intensive and of different enterprises in the industry, promote the common
technology-intensive industry, this kind of industrial park is R&D, knowledge diffusion, human capital flows. On the other
set up for the purpose to develop new technology, besides hand, the industrial park can create unique brand effect to
enterprises, it includes universities and research institutions, so exert its advantages in international competition, purchasing,
it can promote the commercialization of scientific marketing, and in the negotiations with the government.
achievements but also speed up the prosses of the transition.
Copyright © 2018, the Authors. Published by Atlantis Press.
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 1662
Advances in Social Science, Education and Humanities Research, volume 176
Compared with other areas, industrial parks are able to attract importance to the land intensive utilization and the land-losing
more investment, the land utilization is more intensive, can farmers’ compensation system.
maximize the development benefit. At the same time,
industrial parks can produce synergies in environmental Stable development stage (2003-2008), at this stage, the
protection. Government-led development industrial parks innovation, industrialization and development of new
generally use a variety of reward, taxation and financing technology were highlighted, and the government started to
policies to promote and attract investment. And furthermore, realize the cooperation issues between industrial parks. As for
through every link of industry associations, the industrial innovation policy, the state offered support and encouraged
parks derive a batch of affiliated enterprise with collaboration the introduction-absorption-innovation process to strengthen
relationship and expand itself. The large enterprises are as the the enterprises’ capacity for independent innovation and the
core of the clusters, they lead the development of small and core competitiveness. The interactive development and
medium-sized enterprises in both upstream and downstream organic fusion of modern manufacturing industry and service
industry were effectively promoted, the service outsourcing
was required to upgrade the industrial structure. In addition, to
III. DEVELOPMENT TRAJECTORY AND CURRENT STATUS ease the contradiction between supply and demand of land and
to protect arable land, China implemented the most stringent
A. Development Track of the Industrial Parks land conservation policy.
The development of domestic industrial parks is closely
Upgrading and development stage (from 2009 to now),
related to the construction and development of economic and
during this stage, the development of national industrial parks
technological development zones after the reform and opening
was more diversified. In addition to the continuation of the
up. In 1979, the Central Committee of the Communist Party of
previous policies, green parks were emphasized, the state
China decided to establish the special economic zones in
required the parks to change the traditional development mode
Shenzhen, Zhuhai, Shantou, Xiamen. The Shekou industrial
of high pollution, high energy consumption and terminal
zone which covers an area of 2 square kilometers is the first
management, to implement the certification of international
industrial park opening to the outside world in China. In 1984,
environmental management system. The government began
14 coastal cities are allowed to designate a region with clear
focus on the construction of the parks’ soft environment,
geographical boundaries in order to establish economic and
which involved policies such as innovation and
technological development zones. In 1988, China established
entrepreneurship atmosphere, harmonious park, employment
its first high-tech industrial development zone-Beijing new
and social insurance. In regional cooperation and coordination,
technology industrial experimental development zone. In the
a series of expansion strategies of national industrial park were
same year, Caohejing new technology development zone was
implemented in Midwest, because of the unbalanced
built. In 1992, a large number of provincial capitals and cities
development. In this stage, the incentive mechanism of share
along the Changjiang river and the border began to build a
ownership, disposition of scientific and technological
national high-tech industrial development zone. Since the
achievements, the scientific research project funds
reform and opening up, the development of China's industrial
management were successively implemented. At the same
parks can be divided into the following four stages:
time, the industrial parks began to pay attention to the people's
Initial development stage (1984-1991), most of the well-being of the development zone.
industrial parks were special economic zones, government
used preferential policies, normally in tax, land, human B. Current Status of Industrial Parks
resource, finance and other aspects to attract domestic and Considering the data availability and the output value
foreign capital and promote industrial development and proportion, we take economic and technological development
technological progress. zones and high-tech industrial development zone for instance,
Rapid development stage (1992-2002), rapid development to analysis of current situation of the development of domestic
stage in addition to the support policies mentioned before, industrial park. In 2016, there were 365 national economic
government mainly improved the management system, the zones and high-tech zones in China. The total GDP of the two
promotion of modern service industry, industry clustering, types of national parks was 17094.6 billion yuan, which
structure optimization, infrastructure construction, etc. In reached 22.97% of the national GDP. The total tax paid by the
terms of the park management system, due to the weakening two types of national parks was 2932.7 billion yuan, which
of policy advantages, the government proposes that all was 25.31 percent of the national tax. The two types of
industrial parks should promote industrial innovation, national parks generated 5525.4 billion yuan in foreign
technological innovation, system innovation and investment exchange from exports, accounting for about 40% of China's
innovation. At the same time, the policies of strict examination, foreign exchange from exports. Faced with the difficult
sorting out and approval of all kinds of developing zone were recovery of the world economy, the two types of national
issued. And the state encouraged foreign investment to parks showed a steady rise, and the relevant economic
establish industrial parks of agriculture, tourism and high indicators of the high-tech zone have increased slightly more
technology. In addition, more attention was paid to industrial than that of the economic zone. In 2016, the GDP of the two
cluster rather than geographical centralization. The types of national parks increased by 8%, higher than the
government gradually focused on promotion of industrial national GDP growth rate (6.7%). Taxes paid in the two types
chain. It is worth mentioning that in this phase the state attach of national parks increased 7.4%, higher than the national rate
of 4.8%. The export earnings of the two types of national
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parks dropped 2.1% compared with the previous year, roughly internal supporting facilities, popularize the Public-Private-
the same as that of the whole country. Partnership model.
On December 3, 2017, development Institute of Tongji (4) Promoting R&D and innovation as the core
University released "2017 China industrial parks sustainable competitiveness of the industrial parks is the first priority. To
development blue book". The “blue book” scored and ranked achieve the sustainable development of the park, the
the two types of industrial parks from these 5 indicators below: enterprises must keep improving innovation and R&D
social development, public services, industrial cooperation, capabilities. Through the establishment of R&D platform
innovation and economic development. According to the between university and enterprise, the joint development
results, Zhongguancun national innovation demonstration mechanism inside the clusters, the effective intellectual
zone, Zhangjiang national independent innovation property protection, the special human capital flow platform,
demonstration zone, Suzhou industrial park, Tianjin economic the industrial parks strengthen the scientific research
and technological development zone, Guangzhou economic innovation ability, the clusters can speed up the process of
and technological development zone, Wuhan east lake research results into productive forces, promote the formation
national independent innovation demonstration area and the of the culture of the park innovation, build park soft power.
Qingdao economic and technological development zone were
(5) Local governments need to clearly define their
the industrial parks which remained in the top 10 for 5 years.
In 2016, there were 64 industrial parks in the east, 21 in the functions, identify their functional orientations, and carry on
middle and 15 in the west. The number of developed market-oriented operations. At present, the local government
provinces and cities in the top 100 industrial parks occupied is the builder of the regional investment environment, the
an absolute advantage, and the number of top 100 industrial supervisor of the market order, the organizer of investment
parks in Jiangsu province had the most of the industrial parks promotion activities, and the leader of project investment
in the list. cooperation. These roles are formed in the process of
transition from planned economy to market economy. Under
the condition of weak market factors, low competitiveness of
IV. POLICY SUGGESTIONS enterprises, and underdeveloped intermediary organizations, it
(1) Avoiding homogenization, lack of industrial chains is reasonable for government organizations to invite
and excessive competition, the industrial parks need to seize investment activities and to lead project investment
the opportunity to create unique competitive advantages and cooperation. But in the long term, the government should fade
build the brand value. At present, many industrial parks in away from the dominant position of attracting investment as
China are still the processing and manufacturing parks with soon as possible, give way to enterprises, and focus on
resource-intensive and labor-intensive. Most enterprises with creating a good investment environment and entrepreneurial
high energy consumption and heavy pollution are in low end atmosphere for attracting investment. We also need to
of the value chain. To solve this problem, it is very important establish a coordinated, orderly, standardized, competitive
to plan the industrial park scientifically and explore the profit market-oriented investment mechanism, improve the
model. Based on local resource differences, we should supervision mechanism, strengthen supervision and
vigorously support leading industries in the region, promote management by integrating various types of investment
"City-Industry Integration", and develop modern resources.
manufacturing and producer services to promote adjustment
and update of industrial structure. V. CONCLUSION
(2) With market-oriented, clear positioning and accurate The 21st century is the era of knowledge economy. The
connection of the industrial parks, we need to conduct in- growth of the world economy will depend more on the
depth market research, from nation macroeconomic policies, production, dissemination, knowledge and information, the
location characteristics, industrial bases, competitive capacity of scientific and technological innovation will become
environment, and demand conditions. We should accurately the decisive factor for countries and regions to gain economic
locate the projects of the industrial parks and increase the competitive advantages. It is a vital mission for China to
occupancy rate of enterprises. At the same time, we should promote industrial structure adjustment, transform economic
make great efforts to complete the infrastructure construction, growth pattern and enhance independent innovation capability
strengthen the investment promotion and capital introduction, so as to achieve stable economic. Both the new and existing
logistics and other supporting industries, pay attention to the industrial parks should focus on the long-term future, and meet
development of small, medium and micro enterprises in the the requirements of strategic transformation. There is no doubt
park, solve the problem of financing difficulties for SMEs that industrial parks have their own development rules, and it is
(Small and Medium Enterprises) and expand financing essential to follow the development trend of industrial parks to
channels. make a good long-term development plan. Only in this way can
we better combine the actual local condition with the plan,
(3) Balanced development, comprehensive promotion and promote the rapid development and cultivate the core
key breakthroughs is the most important work to do. The competitiveness of the industrial parks.
industrial park needs to develop and construct many areas.
The government and developers must coordinate the effective
use of external infrastructure and the orderly construction of
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