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Impact of inadequate innovation in enterprises on industrial upgrading in Wenzhou and relevant enlightenments (No 150, 2014)


Research team on development strategy and policy for regional innovation, written by Ma Mingjie, Department of Techno-Economy, Development Research Center of the State Council (DRC)

No 150, 2014 (Total 4649)


This is an analysis of funds, technology and personnel input in innovation in Wenzhou's enterprises and industries during China's economic development, 2000 to 2009, which shows that most businesses weren't prepared for transforming their technology and personnel, except for just a handful, such as Zhejiang Chint Electrics and Delixi. Also, their awareness was far from enough, so their innovation ability grew very slowly. Companies are facing transformation and upgrade difficulties because of a loss of cost advantage and tightening market, since 2008.

What happened in Wenzhou showed that it takes a long period of time for companies to innovate and sharpen their competitive edge, and they need constant input. And, weak, slow innovation just delays the development process, and causes problems in future transformation. The government needs to play a greater role in helping them learn and get training, and to improve product quality by raising standards and strengthening supervision, and improving profits through speedier reforms.