Suggestions on Promoting Innovation and Development of Tianjin

Advanced Manufacturing

Hongyin Liu

, Xin Li

College of Humanities, Tianjin Agricultural University, NO.22, Jinjing Road, Tianjin, P.R.China

Keywords: Advanced manufacturing; Innovative development; Tianjin.

Abstract: Cultivating and strengthening high-tech industry is an urgent requirement for improving quality benefits and

transforming kinetic energy. However, there are some problems in Tianjin advanced manufacturing. They

are slow upgrading of advanced manufacturing industry, lacking cultivation of technological innovation,

lagging transformation of manufacturing service, insufficient combination of technology and finance, and

deficient introduction and cultivation of technology and skilled talents. There problems lead to poor ability

of transformation, R&D, and slow development of production service. This paper proposes that industrial

core-technologies and common technologies should be tackled and the intelligent development of advanced

manufacturing should be promoted. At the same time, advanced manufacturing innovation micro-center and

regional cooperation and promotion center should be set up. Scientific and technological innovation alliance

and technological innovation network should be established. Intellectual property pledge financing of

advanced manufacturing enterprises and the service system of new third board transaction market should be

promoted. Talent market intermediary service institutions should be encouraged and developed. Business

environment should be optimized and private technology enterprises are expanded.

1 INTRODUCTION

With the advent of the fourth technological

revolution, developed countries have implemented

development plans of advanced manufacturing, such

as the German industrial 4.0 plan and the American

“advanced manufacturing strategy” plan[1]. In April

2015, the Beijing-Tianjin-Hebei Collaborative

Development Plan set Tianjin as the national

advanced manufacturing R&D base. In May,

advanced manufacturing was listed in the “made in

China 2025” plan. Tianjin has industrial base,

economic conditions and policy advantages. By

2020, the proportion of Tianjin advanced

manufacturing industry will be raised to more than

70%.

2 THE CONSTRAINTS ON

INNOVATION AND

DEVELOPMENT OF TIANJIN

ADVANCED

MANUFACTURING

There is a certain gap between the development

target of advanced manufacturing and innovation

ability, industry level, supporting service and so on.

2.1 The Upgrade and Transformation

of Traditional Manufacturing is

Slow and the Industrial Level is not

High

First, traditional manufacturing, like petrochemical

with low-added value, metallurgy and textile,

accounts for more than 50% of industry in the city.

The expansion of industry is not enough. Many

manufacturing enterprises focus on the low-end

industrial chain, while fewer enterprises gather at the

high-end industrial chain, such as design, testing,

marketing, service and so on.

Second, modern manufacturing has not formed a

dominant position. The proportion of strategic

industries, like intelligent manufacturing, new-

generation information technology, accounts for less

than 20% of the industry. The supporting industries

are not driven strongly by high-end industries like

aerospace. The degree of industrial clustering is not

high enough.

Third, leading enterprises and major projects

are in short. There are more than 500 famous

industrial products, which only take up half of

Shanghai.

2.2 The Cultivation of Scientific and

Technological Innovation is

Insufficient, and the Ability of

R&D and Transformation of

Enterprises is not Strong

First, less than 40% of the enterprises carry out

innovative activities in Tianjin. The number of high-

tech enterprises occupies only 1/7 of Beijing, 1/4 of

Shanghai, and 1/2 of Shenzhen. The innovation and

creation of private enterprises are active. The

number of private enterprises in Tianjin is large, but

their scale is small. In 2014, the total industrial

output value in Tianjin was more than 3 trillion

yuan, of which private industrial output occupied

only 1 trillion yuan.

Second, the investment of R & D is insufficient.

In 2014, the investment in R & D was 3%, taking up

only 1/3 of Beijing and 1/2 of Shanghai. Among

them, the investment of enterprises which are above

the scale of the whole city, accounted for a low

proportion of the main business income.

Third, the scale of Tianjin technology trading

market is small. The ability to undertake, incubate

and transform technology is low. The capacity of

absorbing technology outside the city, especially

Beijing, is weak. In 2014, the number of technical

contracts that flowed from Beijing to other provinces

reached 37212, among which the number to Tianjin

and Hebei was 3475, accounting for only 9.3% of

the output technology contracts[2].

2.3 The Transformation of

Manufacturing Service is Lagging

Behind, and the Development of the

Productive Service is Inadequate

First, the added-value of productive service occupies

only 50% of Beijing and Shanghai. The ratio of

industrial added-value to productive service added-

value is only 1: 0.74, while the ratio in Beijing and

Shanghai are respectively 1: 3.06 and 1: 1.38.

Second, transformation of enterprises from

production to service is lagging behind. The industry

chain and value chain of manufacturing is not

extended enough to R & D and marketing services .

The service transformation has not been realized in

manufacturing industry.

2.4 The Combination Between Finance

and Science and Technology is

Insufficient. The Financial Support

for Scientific and Technological

Innovation is not Enough. Indirect

Financing and Direct Financing are

Both Low

First, the proportion of indirect financing is low. In

the period of “11th Five-Year” and “12th Five-

Year”, the loans from financial institutions takes up

less than 10% of the total funds of scientific and

technological activities, with limited rising space.

The proportion of loans for scientific and

technological activities has always been around

0.3% of total financial institutions funds.

Second, there is very few direct financing. The

number of listed companies in Tianjin takes up only

16% of Beijing, 18% of Shanghai and 20% of

Shenzhen[3]. The number of enterprises “going out”

and utilizing overseas innovation resources is even

less.

2.5 There is Deficient Introduction and

Cultivation of Scientific and

Technical Talents. R & D Talents

and Transformation Talents are in

Short

First, a barrier-free mobility mechanism of Beijing-

Tianjin-Hebei talents has not been formed. The

siphon effect of Beijing talents has not been

reversed. Tianjin gets little benefit from the spillover

of Beijing talents.

Second, the supporting policies are not in

designed position. There are difficulties in the

introduction of high-end talents outside the city and

abroad. Third, the agglomeration effect of industrial

population in Binhai New Area has not been

released. The training of high-skilled talents is

insufficient. The R & D talents and transformation

talents of advanced manufacturing are in short[4].

3 SUGGESTIONS ON DEVELOP

MENT AND INNOVATION OF

TIANJIN ADVANCED MANUFA

CTURING

3.1 Infrastructure of Advanced

Manufacturing R & D Should Be

Strengthened, and the Development

of Intelligent Manufacturing

Should be Enhanced

First, with the great demand of economic and social

development, the major technical bottleneck which

restrict the development of advanced manufacturing

should be solved. A large number of major projects,

such as intelligent manufacturing, big data and

information security, new drug discovery, high-end

medical equipment and key materials are

implemented. These projects will enhance related

technical fields.

Second, some key enterprises are selected to

carry out intelligent production demonstration

projects. They can enhance the function,

performance and degree of automation of production

system. The enterprises can develop into flexible

manufacturing system, intelligent workshop,

intelligent plant and intelligent manufacturing

system. At the same time, collaborative planning and

decision optimization management are achieved in

all the links of product life cycle.

Third, the construction of physical system can

be sped up through organic integration and deep

collaboration of computation, communications,

network and control technology. Real-time

interconnection, accurate perception, effective

interaction and intelligent control of production

system can be achieved.

3.2 Advanced Manufacturing

Innovation Micro-center and

Regional Cooperation and

Promotion Center Should be

Established. Technology Innovation

Alliance of Industry-University-

research and Science and

Technology Innovation Network

Should Be Built

First, relying on large enterprises or industrial parks,

advanced manufacturing innovation micro-centers

should be established, in key areas of the new

generation of information technology, high-end

equipment manufacturing, new energy, new

materials and biomedicine. The micro-centers can

explore a new trinity innovation mode of

“technological innovation + enterprise incubation +

industrialization”.

Second, an innovation and development platform

should be established, from the constructive

experience of advanced manufacturing in Binhai

New Area Central Industrial Park and the

experiences of R & D manufacturing links and

supporting industries of Beijing high-tech industry.

The platform includes high-end equipment

manufacturing, new generation of information

technology and biological medicine. Regional

cooperation promotion center should also be built

up.

Third, the postgraduate training in colleges can

be combined with achievements transformation of

advanced manufacturing. They can build key

laboratories, engineering laboratories, enterprise

technology centers and Engineering (Technology)

research centers with famous universities and R & D

institutions at home and abroad. The industry

associations should integrate innovation resources of

Beijing-Tianjin-Hebei to establish industrial

innovation alliance. Research institutes, R & D

centers, Industrial Innovation Alliances and

technology service institutions should be integrated

to form Beijing-Tianjin-Hebei manufacturing

technology innovation network.

Fourth, standardized promotion plan should be

implemented to construct standard system. The

system follows international standard in aspects of

quality, safety, health, environmental protection and

energy saving. Enterprises are encouraged to adopt

international standards of production. Leading

enterprises are supported to participate in the

revising of international standards, national

standards and industry standard.

3.3 The Transformation of

Manufacturing Service Should Be

Accelerated. The Level of the

Advanced Manufacturing Service

Can Be Improved

First, manufacturing services demonstration projects

can be carried out in bidding, third party logistics,

optimization of supply chain management and

solutions in engineering. Large enterprises and

equipment manufacturing are leaded to transform

from production-oriented manufacturing to service-

oriented manufacturing and from production-center

to customer-center.

Second, the development of the production and

service industry can be sped up. Productive services

in modern logistics, e-commerce, technology

services, information services, quality certification,

product identification and inspection are vigorously

developed. The capacity of production service for R

& D, production, business operation and

management of advanced manufacturing industry is

improved.

Third, the development of science and

technology service industry should be sped up.

Specialized technology service enterprises should be

cultivated in R & D, design, technology transfer and

business incubation. The scale of science and

technology service enterprises is expanded. A

scientific and technological service system which

covers the whole technological innovation process is

built.

3.4 The Utilization of Foreign Capital

and International Cooperation Level

of Manufacturing Industry Should be

Improved. Intellectual Property

Pledge Financing of Advanced

Manufacturing Enterprises and the

Service System of New Third Board

Transaction Market Should be

Promoted

First, the advantages in free-trade pilot area system

should be fully utilized. For example, the key areas

of manufacturing are increased; the foreign capital is

guided to high-end manufacturing fields, like new

generation of information technology, high-end

equipment, new materials and bio-medicine.

Second, it is suggested to establish Tianjin

science and technology Guarantee corporation. The

loans on intellectual property rights will be

guaranteed to protect patents and trademarks. The

government can incorporate commercial banks,

which engage in the pledge loan business, and

Technology Guarantee Corporation into the patent

pledge compensation funds. According to the risks

of guarantee and realization of the patent right, the

government can determine risk level so as to give

corresponding risk compensation.

Third, specialized intermediary service

organizations and professional associations of new

third boards are established. A competitive and

orderly socialized OTC market service system is

formed, which is composed of joint organizations,

intermediary organizations, self-discipline

organizations and service centers.

Fourth, the policy of reducing the burden on the

advanced manufacturing R & D enterprises is

carried out. Private scientific and technological

enterprises become bigger and stronger. The tax

burden and non-tax burden of the advanced

manufacturing industry are reduced. The halving of

income-tax preference is expanded to advanced

manufacturing R&D enterprises. The R&D

expenditure deduction years of the advanced

manufacturing R&D enterprises is extended. The

proportion of deduction in R&D expenditure is

increased to 75%.

3.5 The Marketization of Talent

Intermediary Service Institutions

Should Be Encouraged. It is

Suggested to Adopt the Complex

Method of “Team + Project” to

Attract Talents With Achievements

and Cultural Characteristics

First, there should be policies to encourage and

develop market-oriented talent intermediary service

organizations. The monopoly of government talent

service institutions should be broken. Medium and

high-end talent intermediary service agencies should

be cultivated to absorb all kinds of talents and

provide professional services in Tianjin.

Second, with the help of Zhongguancun

resources, Tianjin can set up a talent incubator and

purchase professional R & D institutions in

Zhongguancun. That will be beneficial to oriental

training of senior technical talents and management

talents for Tianjin advanced manufacturing industry.

Third. necessary conditions should be provided

for the introduction of talents in Tianjin

Development Zone, High-tech Zone and Binhai New

Area. The development of key technology and the

transformation of scientific and technological

achievements should be promoted. A cultural

environment of tolerating talents, respecting talents

and preferentially treating talents should be built.

Talents should be retained by achievements and

characteristic culture.

ACKNOWLEDGEMENTS

A key project of Tianjin science and technology

development strategy research project Study on

Promoting the Construction of Advanced

Manufacturing R & D Base under the Background

of Beijing-Tianjin-Hebei Collaborative

Development (17ZLZDZF00510).

REFERENCES

1. Liu Gang.2015. Implementing of innovation driven

development strategy and construction of advanced

manufacturing R & D base [N]. Tianjin daily

2. Tang Maohua. 2016.Study on Tianjin accelerating the

construction of the national advanced manufacturing

research and development base [J]. City

3. Tang Lei.2016. A comparative study on the

development of science and technology service in

Tianjin, Beijing and Shanghai [D]. Tianjin University

of Technology

4. Xu Aiping. 2016.Tianjin implementing the path and

system design of construction in the national advanced

manufacturing research and development base [J].

Contemporary Economic Management