It is a call to action that has not gone unheeded in Suzhou Industrial Park (SIP), which is staying ahead of the game by rolling out a raft of initiatives to attract cutting-edge tech firms and encourage outdated plants to become cleaner, smarter and faster. Its fair to say that everybody will eventually face these challenges but the eastern coastal areas are the first to see the glass ceilings in this regard, says Barry Yang, Chairman of SIP. Therefore, its no surprise that we took a proactive approach to explore a transformation route. Coastal cities such as Suzhou are already losing their competitive edge to other cheaper countries and there is also an oversupply of lower end products, which means companies, as well as the industrial parks where they are located, urgently need to move up the value chain if they want to survive. To make this happen, SIP is dishing out relocation payouts, tax breaks, interest-free loans, R&D grants and setting up incubators for a series of high-value industries, in the hope of becoming the countrys next Silicon Valley. Out With the Old, In With the New SIP was created two decades ago as a joint-venture project between the Chinese loan to start a small business and Singapore governments and is already an internationally competitive high-tech industrial park that resembles a garden-like metropolis. High-tech firms and services-based industries now make up about half of all manufacturing there. Among the latest innovative tenants to choose SIP are the Chinese Academy of Sciences electrical institute and nanotech research centre, R&D centers for big multinationals such as Microsoft and Siemens and international collaborations such as the China-New Zealand Joint Center of Innovation and the China-Israel Joint Center of Heathcare Innovations. Meanwhile the old firms making simple products in polluting factories are on the way out. Should tenants fail to upgrade their facilities voluntarily, they will get relocated elsewhere, says Zhang Dongchi, Director of SIPs Science, Technology & Informatization Bureau.
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