On December 4, Economic Daily featured a report titled The Thriving Digital Economy - A Survey of Yangpu District, Shanghai, highlighting the vigorous development of the digital economy in Yangpu. The article delves into the district's commitment to an innovation-driven development strategy and illustrates the vivid practice of establishing an innovative, modern industrial system with the digital economy at its core. Here is the full report:

The Thriving Digital Economy - A Survey of Yangpu District, Shanghai

Yangpu is renowned for its ingrained industrial heritage. In response to the opportunities and challenges posed by the burgeoning digital economy, Yangpu has embraced an innovation-driven development strategy, aligning with the digital era to gradually establish an innovative, modern industrial system with the digital economy at its core. This transition marks a significant shift from "Industrial Yangpu" to "Innovative Yangpu".

Situated along the Huangpu River, Yangpu is the largest and most populous urban area in Shanghai. It is a place where scenic beauty and cultural brilliance coexist, and where traditional industries and cutting-edge technology converge. It is not only a chronicle of modern Chinese industrial civilization but also an attractive world-class waterfront area and a dynamic hub for digital economic development.

In recent years, Yangpu has earnestly implemented the people's city concept, aligned with national and municipal priorities for industry development, and capitalized on the concentration of universities and research institutes, as well as the vibrancy of innovation and entrepreneurship. By promoting the integrated development of education, technology, and talents, and by tailoring the growth of the digital economy to local conditions, Yangpu has continuously ignited new drivers for high-quality development. What is the current state of the digital economy in Yangpu? What are the lessons and practices that can be adopted? What development paths have been explored?

Enhancing the Industrial Ecosystem

A walk along Yangpu Riverside showcases a harmonious blend of traditional industrial heritage and cutting-edge technological intelligence. This area is renowned not only for its concentration of higher education institutions but also as a cluster for the digital economy industry. Recognized as a national innovative urban area, a national innovation and entrepreneurship demonstration base, an important support area for Shanghai Technology Innovation Center and an "Innovation China" pilot urban area, Yangpu has always taken innovation as its distinctive feature. In enhancing the competitiveness of innovative industries, Yangpu has been proactive in developing a digital economy industry system, with related industries going on a fast track.

According to Li Zhengming, Secretary of the Party Leadership Group and Director of the Yangpu Science, Technology and Economy Commission, to date, the number of digital economy enterprises in Yangpu has surpassed 7,000, extensively spread across sectors such as industrial design, cloud-native, industrial internet and fintech. The digital economy, spearheaded by the software and information services sector, has seen double-digit growth for seven consecutive years, with revenues reaching approximately 210 billion yuan in 2023, up 18.7% year on year. From January to August of this year, revenues from the software and information services sector reached approximately 210 billion yuan, up 19.6% year on year, leading in growth rate among Shanghai's central urban areas.

Crucial to the development of the digital economy is the enhancement of the origination power of technological innovation. Yangpu has been actively working with universities, facilitating the transition of innovation from the laboratory to practical application. In May of this year, Yangpu, in collaboration with Fudan University and Shanghai Chengtou Group Corporation, advanced the construction of the Future Valley - Bay Valley Innovation Center. Additionally, Yangpu has partnered with Tongji University to promote the establishment of the Tongji Digital City Research Institute and the National Comprehensive Base for Intelligent Social Governance Experiment. At present, Yangpu boasts 39 municipal professional technical service platforms and 50 engineering technology research centers, with the Shanghai Institute for Mathematics and Interdisciplinary Sciences now officially operational.

To promote the development of the digital economy, it is essential to harness creativity to boost productivity, ultimately leading to the successful commercialization of products. Scaling up production, however, poses significant challenges, and the government must take the lead, steering the trajectory of digital economic development through continuous top-level design and overall planning.

Yangpu has established the Innovation and Development Committee of the CPC Yangpu District Committee, which is tasked with reviewing and advancing initiatives for the integrated development of education, technology, and talents. The committee's focus is on enhancing innovation capabilities, nurturing leading enterprises, serving industrial development, building an open system, and developing evaluation indicators. It aims to integrate the "soft" mechanism of integrated development in education, technology, and talents with the "hard" demand of key industries, fostering a dynamic and mutually beneficial relationship.

Li mentioned that with the digital economy at its core, Yangpu has implemented a leadership system for key industrial chains. Yangpu is proactively positioning ourselves in new frontiers such as humanoid robots and the low-altitude economy, and has developed special policies like the Measures of Yangpu District for Promoting the Development of the Low-Altitude Economy (Trial) to support these emerging sectors. It is also working on bringing application scenarios to life and advancing the construction of the Yangshupu Digital Economy Cluster. Furthermore, it is intensifying "technology+" support, exploring the "goose formation" cultivation plan for specialized and sophisticated enterprises, and the matrix cultivation plan for leading tech companies. It has also established the advisory system for tech company innovation in Yangpu to ensure that innovation continues to take root.

In the robust drive of a suite of policy initiatives, Yangpu has been improving the capabilities of innovation carriers and actively fostering innovative enterprises specializing in the development and application of vertical large models. Notably, TusStar has been designated as a municipal high-quality incubator in Shanghai, and incubators such as the National Science and Technology Park of Tongji University and Yangpu Venture Center have been included in the municipal high-quality incubator database. Additionally, Yangpu is strategically planning the construction of science parks, having formulated the Action Plan for the High-quality Development of Zhangjiang Hi-tech Park (Yangpu) (2023—2025) and planned for the construction of Yangshupu Future Valley with high standards, to provide an expansive platform for technological innovation.

Financial resources are pivotal to driving technological innovation. Yangpu has leveraged "finance +" to empower the development of technological innovation, establishing measures to promote the development of science and innovation finance and exploring the development of an equity investment system characteristic of Yangpu. Yangpu has also formulated the Implementation Measures of Yangpu District for Subsidizing Entrepreneurship Liability Insurance of Sci-Tech Enterprises, achieving the first data asset pledge financing in the financial credit sector in Shanghai, with the entire process from product development to loan disbursement completed within a mere 14 days.

To promote the rapid development of enterprises in the digital economy sector, Yangpu focuses on niche areas such as cloud computing, big data, and AI, creating a diversified fund matrix for early and small investments. Through the "fund + base" operational model, it has channeled social capital into early and mid-stage digital economy enterprises. To date, the Yangpu Finance Bureau has established 9 funds with a total scale of 11.9 billion yuan, investing in 65 district enterprises and attracting 16.5 billion yuan in investments.

"Yangpu will continue to leverage its geographical advantage by creating a digital intelligence-enabled industrial ecosystem, a vibrant and robust technology ecosystem, and a diverse and clustered enterprise ecosystem, continuously enhancing the digital economy industry ecosystem and the core competitiveness of the industry," said Li.

Arousing Innovative Vitality

A short 10-minute walk from Songfeng Road Station on Shanghai Metro Line 3 leads you to Bay Valley in the northwest of New Jiangwan City. The park greets visitors with modern architecture and a palpable air of technological innovation, home to the Shanghai Technology Exchange (STTE).

"Since its opening on October 28, 2020, STTE has achieved a cumulative transaction value of 45.1 billion yuan, with 4,383 projects registered. A substantial portion of these transactions involves universities and research institutes," noted Lu Jijun, Vice President of STTE. By employing its equity registration system and a diverse assessment system for technological achievements, STTE assists researchers in delineating the ownership, the right to use, the right to earnings and the right of disposal, and the post-commercialization benefit distribution of their technological achievements, facilitating the management and commercialization of these outcomes in pilot units.

"For academic and research institutions, STTE acts as a 'catalyst' in the commercialization of technological achievements," said Lu.

To further arouse innovation vitality, Yangpu is rallying high-end enterprises and talent, leveraging local universities to establish a powerhouse for the development of a technology talent highland. This initiative fosters a collaborative ecosystem where universities, research institutions, investment firms, tech companies, and skilled technical personnel coexist and thrive, laying the groundwork for the digital economy. This waterfront district, once known as "Yangshupu", is now evolving into "Digital Yangpu", infusing the area with a distinct vibrancy.

As data is a key driver of technological innovation. The question arises: how can we harness the vast array of data resources to better stimulate economic and social develop?

Athena Data Analytics and Services Co., Ltd. (ADAS), only 50 meters from STTE, is a representative enterprise within Yangpu's digital economy sector. ADAS concentrates on data acquisition, analysis, and AI applications, offering support to various government levels and corporate customs in the tech domain. By tapping into the potential of data elements, the company elevates the technological level and application capabilities of government data.

"In recent years, the Yangpu Innovation Index Report has garnered significant attention among entrepreneurs, with ADAS being one of its contributors," said Gu Yingyu, Vice President of ADAS. "This index assesses the quality and standards of innovation development in Yangpu across four key dimensions: innovation elements, environment, outcomes, and impact. It covers a range of indicators, including the power of innovation origination and the development effects of the digital economy, vividly highlighting regional innovation features and trends, thus providing a basis for scientific decision-making."

To envision a grand blueprint for the digital economy, both the guidance of the government and the collaborative support of tech companies and platforms are indispensable. In 2013, Shanghai Sunmi Technology Group Co., Ltd. established its headquarters in Yangpu. Sunmi is dedicated to the widespread adoption and application of intelligent terminal products and technologies in the commercial sector, developing an array of smart commercial IoT devices, along with intelligent commercial operating systems and IoT cloud management platforms, among other products and services.

"Benefiting from the district's innovative and diverse business atmosphere, as well as its people-oriented and efficient business environment, Sunmi has seen continuous expansion and business growth, developing into a company with a value of over 3 billion yuan and a global workforce exceeding 1,000 employees," said Zhang Jinpu, Vice President of Sunmi Technology Group. "Sunmi integrates the latest product philosophies and technological applications into the field of intelligent terminals. By tightly coupling innovation with market demands, we continuously enhance our R&D and innovation efficiency, extending our products and services to more than 200 countries and regions."

The continuous improvement of Sunmi's innovation capabilities is closely linked to the "fertile ground for dreams" provided by GKIC Innovation & Development Demonstration Zone. Ma Pingchuan, Deputy Manager of the Comprehensive Management Department of GKIC, said, "The zone lies to the south of the Wujiaochang urban sub-center and to the north of the New Jiangwan City International Community, encircled by Fudan University, Shanghai University of Finance and Economics, Tongji University, Naval Military Medical University, and Shanghai University of Sport. This area boasts rich scientific and educational resources and a grand concentration of high-intelligence talents. It is a pilot and experimental zone for Yangpu's commitment to the integrated development of university campuses, science parks, and public communities. To date, the total revenues of GKIC have surpassed 300 billion yuan, with a high proportion of tech companies, a notable conversion rate of invention patents, and a quarter of Yangpu's specialized, sophisticated, and high-tech enterprises calling the zone home."

In serving enterprises, GKIC offers a range of specialized services, including business registration, recruitment, legal and compliance risk alerts, and intellectual property training, hosting about 20 events each year. "For key enterprises in the zone, we assign dedicated staff to address their inquiries and challenges, and we also regularly organize entrepreneur salons to share experience and information," said Ma.

To further develop features in stimulating innovation and entrepreneurship, and to provide better support for enterprises, in late 2018, Yangpu partnered with universities such as Fudan University, Tongji University, Shanghai University of Finance and Economics, and the University of Shanghai for Science and Technology, along with leading industry enterprises, to establish the Shanghai Penta Innovation & Entrepreneurship Institute (SPII).

"Throughout the process of innovation and entrepreneurship, many encounter challenges in dealing with 'enablers' of entrepreneurship, securing support from various quarters, and leveraging resources to serve innovation and entrepreneurship. We are dedicated to guiding these talents, identifying innovation obstacles, and breaking down silos, facilitating smoother collaboration among like-minded people towards a common goal, within an open and diverse environment that nurtures innovation," said Yang Ling, Executive Director of SPII. She expressed her desire to create a "network of friends" for innovators and entrepreneurs by diverse means, aiming to spark new "chemical reactions" of creativity.

Developing New Application Scenarios

Advancing technological innovation and developing the digital economy should both be anchored in fulfilling people's aspirations for a better life. Yangpu is committed to the people's city concept, ensuring that the city built by the people serves the people and that they benefit from the advancements in science and technology.

The "Changyang Belt" along Yangpu Riverside, with its "U" shaped shoreline, resembles a taut bow, continuously accumulating potential for the development of the digital economy and the building of a people's city. This riverside area is not just a scenic city feature but also a hub of innovation, home to leading digital economy companies like Meituan and Douyin.

Imagine your takeout arriving from the sky, delivered right into your hands. This has become a reality in Yangpu. In July, Meituan's drone delivery service at Shanghai Huangxing Park began trial operations. In late October, Meituan launched its third drone delivery route, from Wujiaochang Hopson One to B·Link on Zhoujiazui Road. During peak times, drones carrying lunch deliveries for nearby office workers descend from the sky, sometimes forming an aerial queue.

Meituan's fourth-generation drones are capable of safely delivering items up to 2.4 kilograms to customers within a 5-kilometer radius in just 10 minutes. They are designed to operate in a variety of environments, including mountainous areas, plains, scenic spots, water bodies, urban and suburban areas, and complex urban structures. These drones are also equipped to function effectively in challenging conditions such as moderate rain, moderate snow, and low-light scenarios.

Li said, "In line with the Action Plan for the High-quality Development of the Low-Altitude Economy Industry in Shanghai (2024-2027), Yangpu is proactively shifting from 'niche pilots' to 'mass experiences', expanding and innovating low-altitude application scenarios, and diligently working to support and ensure the realization of various 'innovative ideas', capturing the opportunities for industrial development."

Yangpu places people at the heart of industrial development, encouraging digital economy enterprises to create new application scenarios that cater to the diverse needs for a quality life.

"Benefiting from Yangpu's favorable business environment and robust policy support, Dewu has developed into one of the most popular e-commerce platforms among young consumers. We pursue technology-driven development, integrating the latest technologies such as AI, VR, and AR into our business scenarios, and have developed features like AR makeup trials, AR shoe trials, AR accessory trials, AR greeting cards, and AR collections, enabling users to virtually try on products at home, aiding them in making purchasing decisions," said Guo Xiaowei, a technical expert at Dewu.

"Dewu is committed to exploring cutting-edge technological innovations, aiming to provide consumers with an enjoyable shopping experience, ensuring online shopping security, and invigorating the consumer market with new dynamism," Guo added.

Currently, Yangpu is comprehensively creating an entrepreneurial ecosystem, overlaying application and entrepreneurial scenarios to create "large clusters" from the upstream and downstream chains.

Strolling through KIC, one is greeted by a youthful and fashionable vibe. It is the central hub of the Yangpu GKIC Innovation & Development Demonstration Zone.

Relying on leading companies like Bilibili and ByteDance, GKIC is actively drawing in upstream and downstream enterprises, nurturing leading companies such as Agora, UCloud, ATRenew, Sunmi Technology, and YXJ across different domains. With a focus on the medical and pharmaceutical industry chain and the online entertainment industry chain, the park has established a distinctive "internet + broad health" smart medical industry cluster, promoting the development of the Yangpu area of China (Shanghai) Network Audio-Visual Industry Base.

In 2014, Zhao Bin, returning from abroad, founded Agora in GKIC with just three rented workstations, dedicating his efforts to real-time audio and video technology. In 2020, Agora went public on the NASDAQ. Today, the company has expanded significantly, with its workstations now spanning several floors and its products and services covering over 200 scenarios in more than 20 industries, including social, entertainment, and medical sectors.

Zhao said, "The innovative ecosystem of GKIC not only allows entrepreneurs to take their first steps but also to stride further." The 8.2-square-kilometer innovation park now hosts over 4,600 innovative enterprises of all sizes, with more than 170,000 people engaged in entrepreneurship and daily life. The park fosters an environment where cultural creativity and network technology innovate at every turn, with an interconnected industry chain that facilitates smooth and convenient business collaboration.

The entire Yangpu Riverside is abuzz with the development of the "headquarters park" for the digital economy, where old industrial structures and new headquarters projects coexist harmoniously. "We'll endeavor to build a Yangpu into a beautiful district of the people, for the people, and benefiting the people, as we explore the practice of building a modern socialist city with Chinese characteristics in the new era," said Xue Kan, Secretary of the CPC Yangpu District Committee.