An Analysis of New-Tech Agglomeration in Beijing: A New Industrial District in the Making?

Abstract

Industrial districts are usually referred to as spatially concentrated networks of small and medium-sized firms. These have been seen in Europe and North America, but, so far, have been almost undiscovered in developing countries. Based on the assumption of the strong embedding of the stable and ‘pure’ district model, in this paper we examine a new-tech agglomeration in Beijing, as a variant of such districts in the making, and explain it with the use of concepts adopted from the industrial districts school. The Beijing case represents an experiment in the conscious public creation of new industrial spaces founded on the spontaneous action of key individuals. Initially it progressed as an embryonic industrial district that, in its early development, appeared to contain all three elements of entrepreneurship: small firms, new firm formation, and innovativeness. However, it has eventually been stranded by a unique combination of weaknesses. These include strong hierarchical restraints from the state-owned institutions or firms on local networking, and direct global linkages with the multinationals, which expose local economies to volatile world competition. We pinpoint the necessity for a developing country to rest its development of industrial districts on self-sustained innovativeness, and highlights the difficulties encountered in such a process.

Uneven land reform and urban sprawl in China: the case of Beijing

“…In contrast, those national or even citylevel zones are better managed. Zhongguancun, China's 'silicon valley,' may be a good example (Wang and Wang, 1998).…”

Transnational corporations and network effects of a local manufacturing cluster in mobile telecommunications equipment in China

“…Drawing upon personal interviews and secondary materials in China, we show how Nokia, the lead firm in a local industrial cluster, is able to create non-cluster external economies for its key suppliers co-locating in this purpose-specific industrial cluster. We aim, therefore, not only to add additional empirical evidence to existing studies of local clusters in developing countries (see Christerson and Lever-Tracy, 1997;Wang and Wang, 1998;Eng, 1999;Schmitz and Nadvi, 1999;Wang and Yeung, 2000;Zhou and Tong, 2003;Liu et al, 2004;Schmitz, 2004;Depner and Bathelt, 2005), but also to contribute to further theory development.…”

Spatial representations and policy implications of industrial co-agglomerations, a case study of Beijing

“…With the establishment of the free market and subsequent globalization, the government policymaking has shifted to promote regional growth with introducing sub-centers and industrial parks. Meanwhile, the industrial relationship has been dramatically re-shaped under free market economy under the global industrial value chain, and arguing that industry parks are a new production space in China (Li, Bathelt, &Wang, 2012, Wang andWang, 1998;Yang et al, 2013). However, there is a big challenge for planners and policy makers to align these parks with market forces.…”

“…The fast growth of industry clusters has intrigued enthusiasm in testing various new development concepts in this area, such as innovative space, technological innovation, knowledge spillover, social network and institutional capacity (Li et al, 2012, Wang andWang, 1998;Wei and Wang, 1993;Yu and Tong, 2003). The question remains as to how these economic success stories can link with overall regional spatial economic dynamics.…”

“…The first well known cluster is perhaps the Information and Communication Technology (ICT), mainly located in Zhongguancun area, later designated as Zhongguancun Science Park (ZSP) in 1992, growing from the synergy with universities and academic institutes (Wang and Wang, 1998;Yu and Tong, 2003). ZSP demonstrated success in the last 20 years, generating substantial economic returns and employment positions.…”