A field research team from the Central Committee of the China Association for Promoting Democracy (CAPD) has highlighted the role of technological innovation in driving high-quality upgrading and transformation of traditional industries in Henan and Shandong provinces.
The research was commissioned by the Central Committee of the Communist Party of China (CPC) to promote the integrated development of sci-tech innovation and industrial innovation, with a focus on strengthening the support for sci-tech innovation and accelerating the transformation of traditional industries.
The research team visited enterprises, key laboratories, universities, new research and development institutions, and sci-tech parks in the central province of Henan and Shandong province in eastern China.
Henan Shuanghe Huali Pharmaceutical Co., Ltd., a Pingdingshan-based company primarily engaged in the production of large-volume injections, is undergoing a digital and intelligent transformation to reduce costs, improve quality and increase production.
During the transformation process, the company has been challenged by high technical barriers, substantial upfront investment and a long return cycle.
In response to such challenges and difficulties faced by companies during their transformation, the research team recommended accelerating the construction of digital and intelligent infrastructure to support the transformation and upgrading of traditional industries.
The research team also recommended developing action plans for digital and intelligent transformation for key industries and sectors.
"It requires concerted efforts from the government, the market and enterprises. First, the government should provide policy support and guidance in this regard. Second, support should be offered in terms of finance, projects and taxation. Third, platforms for common and key technologies should be established to create a favorable environment for enterprises to undergo digital and intelligent transformation," said Yang Hui, a member of the research team and deputy director of the Institute of Science and Development at the Chinese Academy of Sciences.
Pingdingshan authorities have rolled out policies to help enterprises in traditional industries tackle difficulties they face in technological and digital upgrading.
To date, the city has established 10,210 5G base stations, 9,107 enterprises have moved to the cloud and adopted digital platforms, and 587 intelligent application scenarios have been developed among manufacturing enterprises above a designated size (those with main business revenue of 20 million yuan or more, or about 2.8 million U.S. dollars) in key industries.
The research team also visited several large-scale machinery and equipment manufacturing enterprises in Henan's Luoyang City, holding production workshops to learn about the development of key technologies and the promotion and application of innovation outcomes.
CITIC Heavy Industries Co., Ltd. a global supplier of mining and cement equipment, owns two national-level research and development centers. It has developed 10 core products focused on advancing mining equipment toward high-end, intelligent and green development. Despite developing new products, new technologies and new equipment, the company still faces bottlenecks such as difficulty in market validation, user concerns and high promotion costs, which slow down the pace of market adoption.
In order to encourage technological innovation among enterprises and promote industrial upgrading, Henan Province introduced a special incentive policy this January to encourage companies for developing the "first sets" of major technical equipment, with subsidies of up to 5 million yuan (about 694,000 U.S. dollars).
Henan has so far recognized 543 pieces of major technical equipment as provincially certified "first sets".
"Since last year, 141 enterprises have received provincial certification for their 'first set' of major technical equipment, securing nearly 50 million yuan (about seven million U.S. dollars) in financial support. This has played a significant role in helping these enterprises promote their products in the market," said Wei Bin, director of Luoyang Bureau of Industry and Information Technology.
"We have to make full use of the [incentive] policy for the 'first set' of major technical equipment to maximize its role in market demonstration and guidance. By gradually promoting and expanding the market, we should mobilize the enthusiasm of both equipment manufacturers and purchasers. Meanwhile, it's essential to leverage the functions of inspection, testing and certification bodies to continuously improve quality and performance, and accelerate the process and pace of promotion and application," said Xu Jianwei, another member of the research team and director of the Industrial Division of the Industry Department of the National Development and Reform Commission's Academy of Macroeconomic Research.
In Henan and Shandong, the research team also conducted in-depth investigations to strengthen the supply of innovation outcomes, advance the transition to clean and low-carbon development, and optimize the development environment for traditional industries.
"Promoting the deep integration of technological innovation and industrial innovation is a necessary path to achieving high-quality development, but it also faces many challenges. It is essential not only to provide information and facilitate connections, but also to strengthen the role of enterprises as the main drivers of innovation, ensuring a seamless connection between the innovation chain and the industrial chain. Through this round of research, we have not only identified problems but also discovered many valuable experiences and practices that are worth learning from and promoting," said He Zhimin, another member of the research team and vice chairman of the CAPD Central Committee.
China Association for Promoting Democracy says innovation key in industrial upgrading, transformation
