"Guangming Daily," Front Page – A Report Card from Open Innovation

Authors: Reporters Su Yan, Liu Meng, Chen Xue, and Shi Weiwei, Guangming Daily (August 14, 2020, Page 01)

　　
　　Located in eastern Jiangsu, Suzhou Industrial Park spans 278 square kilometers—every inch of this land brims with immense potential and dynamic energy.

　　Despite the significant impact of the COVID-19 pandemic, Suzhou Industrial Park achieved a regional GDP of over 129 billion yuan in the first half of the year, representing a 2.1% year-on-year increase. Meanwhile, the park’s total import and export value exceeded 305.2 billion yuan, growing by 4.5%. Notably, registered foreign investment and actual utilized foreign investment reached US$2.07 billion and US$1.28 billion, respectively—up by 149% and 196% compared to the same period last year.

　　A stunning transcript—truly delightful. Why has Suzhou Industrial Park succeeded? The answer is both simple and profound.

　　Because of open innovation. As the primary battleground for open innovation in Suzhou, the park has consistently maintained a forward-leaning, pioneering spirit—boldly pushing boundaries, adeptly seizing opportunities, and ultimately anchoring itself firmly around the central pillar of open innovation. This may well be the "code" that enables the park to remain invincible amid complex and ever-changing circumstances—and it also happens to be its most powerful "trump card."

　　 Proactively planning ahead, embracing open innovation, and focusing on high quality.

　　On the third floor of Building C19 in Suzhou Biomedical Industry Park, "Ding!" The elevator doors opened to reveal the warm, smiling face of Yu Qiang, co-founder of Shengshi Taikang Biopharmaceutical Technology (Suzhou) Co., Ltd.

　　Yu Qiang returned to China in 2010 and is now deeply focused on developing China’s first original drug—a DPP-4 inhibitor—for treating diabetes, which has already entered Phase 3 clinical trials. "We plan to build an integrated industrial base that combines a new drug research institute, a headquarters facility, and a manufacturing plant," Yu Qiang said. "We’ve already identified a potential site, and the planned area is estimated to be around 30 mu."

　　"In 2019, the output value of the park's three emerging industries reached 203 billion yuan. Some companies are planning to build R&D and production facilities, while others aim to list on the STAR Market—both groups have land requirements," said Wang Xuejun, Director of the Suzhou Industrial Park Economic Development Committee.

　　To secure land use in Suzhou Industrial Park, a company must first sign a Land Grant Contract—this is just the first step. They’ll also need to sign an Industry Development Agreement afterward. Initially, 10-year land-use rights will be put up for public auction. Before the 10-year period expires, the company will face a series of rigorous "assessments," evaluated against the Industry Development Agreement. These assessments will examine factors such as investment intensity, time-to-production targets, and tax revenue generated per mu of land. Based on this performance review, the company may then be granted the remaining "N years" of land-use rights—though the total lease term will never exceed 30 years.

　　The phased, flexible-term (10+N) land auction model for industrial use not only reduces the cost of land acquisition for startup companies but also enables the government to effectively monitor and regulate land transactions in the post-lease phase.

　　The land in the park is becoming increasingly "valuable," a trend closely tied to Suzhou Industrial Park's forward-thinking planning.

　　To use it, first excel.

　　Suzhou Industrial Park has long since launched its "Three Major Initiatives"—upgrading manufacturing, doubling the service sector, and achieving breakthroughs in science and technology. Forward-looking emerging industries are now entering their harvest phase: for instance, three key emerging sectors—including artificial intelligence—have maintained growth rates of over 20% year after year. Notably, the biopharmaceutical industry alone accounts for nearly 30% of China's leading innovative enterprises, while in the past three years, approximately 22% of all Class 1 new drug clinical trial approvals nationwide have been granted to companies based in Suzhou.

　　The park is not content with its current achievements and is further intensifying efforts to attract top-tier foreign-invested enterprises as part of its investment promotion strategy, ensuring that high-level industry attraction and development advance hand in hand.

　　During the COVID-19 pandemic, logistics became a major obstacle for businesses trying to resume production and operations. Suzhou Industrial Park not only organized chartered flights to ease transportation challenges but also leveraged the role of Zhongou Kahan, a privately-owned enterprise nurtured within the park itself, in addressing its companies' logistical bottlenecks. Typically, there are three main routes connecting Europe to China: air, sea, and rail. However, Zhongou Kahan has pioneered a fourth option—passenger bus transport—which now enables door-to-door delivery from Suzhou to Germany in as little as 15 days, with some expedited services completing the journey in as few as 10 days. Importantly, this innovative approach cuts costs by nearly 40% compared to air freight.

　　"Time and cost are the key determinants in logistics," revealed Tang Hu, Deputy General Manager of China-Europe Truck Airlines. He added that, thanks to the matchmaking efforts of the Suzhou Xinjiang Aid Working Group, Horgos has included China-Europe truck flights in its 21 measures aimed at optimizing the business environment—continuously enhancing customs clearance facilitation services for China-Europe trucking operations.

　　During the pandemic, the park's tax authorities implemented a series of policy measures—such as streamlining export tax rebates and adopting a commitment-based "acceptance with missing documents" system—to do everything possible to stabilize foreign trade and boost production. In the first half of this year, the park's tax department approved export tax refunds (or exemptions) for a total of 2,318 companies.

　　From the impossible to the possible, Suzhou Industrial Park breaks conventions by cultivating a "small environment" that seamlessly connects with the broader "big picture." Its philosophy of open innovation and high-quality development is as ubiquitous as air itself, continuously driving up the intensity of scientific and technological breakthroughs.

　　Focus on challenges, embrace innovation, and strengthen dedicated service.

　　As Roche Diagnostics Products (Suzhou) Co., Ltd. prepares to begin operations, it has encountered obstacles in importing key biological raw materials such as bovine and human serum. If this issue remains unresolved, the company will be unable to transfer its high-value-added diagnostic reagents from Germany to Suzhou for research, development, and production.

　　"This issue involves multiple departments, and trying to address it by approaching each one individually would be time-consuming, challenging, and complicated—plus, the relevant regulations are still nonexistent," said a representative from Roche Suzhou.

　　Corporate matters are, in essence, the park’s concerns. The Suzhou Industrial Park Administrative Committee and Roche Suzhou came together to engage in repeated discussions, thoroughly understanding each other’s needs while pinpointing key bottlenecks and identifying clear areas for improvement. Thanks to their collaborative efforts, China and Germany officially signed a memorandum of understanding in May 2018 regarding quarantine arrangements for importing bovine serum albumin from Germany into China. As a result, Roche became the first company in China today authorized to import bovine serum albumin from Germany for production purposes.

　　In September 2019, the General Administration of Customs replied to Nanjing Customs, approving Roche Suzhou to import human serum products manufactured by Roche Germany—provided they meet China's entry-exit health quarantine requirements (excluding positive, non-inactivated samples)—thus laying a solid foundation for Roche Suzhou's continued and stable production operations.

　　Following this, Roche not only established the Asia-Pacific Diagnostic R&D Center in the park but also increased its investment in the organization diagnostics and system reagent projects.

　　"Corporate trust stems from the park’s unwavering commitment to advancing specialized, full-lifecycle services tailored to businesses. In recent years, as the park’s industrial capabilities have steadily improved, many companies have approached us with new challenges. Whenever a company reaches out, we immediately step in to collaborate, helping them find practical, effective solutions and delivering solid, hands-on support," said Xiao Xue, Vice President of Suzhou Industrial Park Investment Promotion Bureau Co., Ltd.

　　On January 9, the park's customs authorities launched a pilot program for a bonded model covering the entire industrial chain of high-end manufacturing, aiming to further strengthen the competitiveness of the high-tech manufacturing sector. Companies such as Suzhou Jinglong Technology and Qunce Technology have become among the first batch of pilot-associated enterprises. These companies across the industry chain will benefit from comprehensive supervision, end-to-end bonded operations, streamlined logistics, and shared policy advantages.

　　Zhou Mingchen, Deputy Commissioner of Suzhou Industrial Park Customs, revealed that this reform will soon integrate a new-generation display technology industrial chain led by AU Optronics.

　　Experts have commented that innovations like the reform of the bonded model for the entire high-end manufacturing industry chain are most effective in addressing the challenges faced by foreign companies looking to establish long-term roots, as these reforms directly tackle the "difficulties" and "pain points" crucial to a company's survival and growth.

　　"Institutional innovation and differentiated exploration must always revolve around industry," said Sun Yangcheng, Member of the Party Working Committee and Deputy Director of the Administrative Committee of Suzhou Industrial Park.

　　Leveraging the "Guan Zhu Rong" initiative launched by the park's customs authorities and the Comprehensive Coordination Bureau of the Free Trade Zone, Connor Machinery Manufacturing (Suzhou) Co., Ltd. swiftly completed its pure-credit loan process and secured approval for over 10 million yuan—while enjoying an actual interest rate nearly 70% lower than market levels. Meanwhile, relying on the park’s specialized policies, Jiuxin Medical Technology (Suzhou) Co., Ltd. successfully imported unregistered medical devices from abroad, enabling it to upgrade its flagship product: the automated external defibrillator for cardiac care.

　　Suzhou Industrial Park, starting with the realities of industrial development, has crafted optimal industry ecosystems and the most competitive policy frameworks—albeit through targeted, niche approaches—in several key industries and specialized sectors.

　　Li Xin, Director of Quality and Regulatory Affairs at Philips Healthcare (Suzhou) Co., Ltd., noted that Philips has been achieving annual growth of over 14% in Suzhou's Industrial Park—something unimaginable in overseas markets. As a result, Philips is increasingly shifting its capital, talent, and management authority toward Philips China. As Royal Philips CEO Frans van Houten once said, "China is Philips' second home."

　　In the first half of this year, Suzhou Industrial Park attracted 117 new foreign-invested projects, with strategic emerging industries accounting for about 75% of the total. The more the park invests in nurturing its ecosystem, the stronger the confidence becomes among the companies that choose to set up shop there.

　　 Pioneering ahead—open innovation driven by the power of spirit

　　The "Park Experience," refined since the 1990s, along with the "Zhangjiagang Spirit" and the "Kunshan Path," has collectively formed Suzhou's "three key assets" for entrepreneurship and innovation—rooted in the core principles of learning from others, fostering innovation, achieving harmony, and pursuing mutual success.

　　The park is China’s “experimental field” for reform and opening up, and at its core, the people here have always harbored a sense of urgency to "be first" and a profound mission to "pioneer innovation."

　　To explore the development of a high-level, two-way open model that simultaneously emphasizes "bringing in" and "going out," the park launched construction in December 2015 of the nation’s first "National-Level Overseas Investment Service Demonstration Platform." In April 2019, the "Yangtze River Delta Overseas Investment Promotion Center" was established, providing integrated and specialized services to Chinese enterprises expanding overseas.

　　Affected by the pandemic, the park has encouraged companies to accelerate their diversification of market strategies, prioritizing strengthened economic and trade cooperation with Japan, South Korea, and countries along the Belt and Road initiative—to unlock new opportunities in international trade.

　　From January to June, the Yangtze River Delta Overseas Investment Promotion Center facilitated 27 "Going Global" projects and helped companies secure overseas investments totaling 1.03 billion yuan. Since its establishment, the demonstration platform for overseas investment services has supported 309 Chinese enterprises in expanding their global footprint across 53 countries, with cumulative agreed investment reaching 10.4 billion yuan. Notably, 148 of these companies have invested in 179 projects spanning 22 countries and regions along the Belt and Road Initiative.

　　The park remains committed to fostering independent innovation within an open environment, while actively exploring new pathways for innovation-driven development. In June of this year, construction was launched on the Suzhou Laboratory for Materials Science, with a total investment of 20 billion yuan. Additionally, preparations have begun for the "14th Five-Year Plan" focused on the third-generation semiconductor industry, aiming to align comprehensively—and even surpass in certain areas—both domestically and internationally in terms of talent development and innovation platform building. The park is accelerating efforts to establish a self-reliant, modern industrial system that seamlessly integrates design, R&D, and manufacturing, ensuring full control over the entire value chain.

　　In an open and integrated environment, the park's ability to participate in international competition continues to strengthen. Since the implementation of new listing rules on the Hong Kong Stock Exchange, half of the mainland-based biopharmaceutical companies listed in Hong Kong have come from Suzhou Industrial Park. Meanwhile, the U.S. National Nanotechnology Initiative has recognized the park as one of the world’s eight globally significant industrial hubs in the nanotechnology sector.

　　Talent is the relentless driving force behind the park's open and dynamic development.

　　Eight years ago, Tian Xusheng, who had just earned his master’s degree, joined Shengshi Taikang Biopharmaceutical Company. Over the past eight years, he has remained with the same company and has steadily risen to become a key member of the team. "I never once considered leaving this city," Tian Xusheng says.

　　The park’s appeal lies not only in the many “firsts” it has created in the economic sphere, but more importantly, in providing a platform and opportunities for talented individuals to pursue their ambitions and make meaningful contributions.

　　Looking to the future, the park will embrace greater openness to unlock new growth opportunities, fostering an international, outward-looking innovation ecosystem—making it the premier destination for high-end talent to launch their ventures and serving as a global hub for cutting-edge technological innovation. Proactively taking on the ambitious mission of "rebuilding a brand-new park."

　　 (Our reporters Su Yan, Liu Meng, Chen Xue, and Shi Weiwei)