In the capital of Guangdong province, Guangzhou, Chinese drone company Ehang Inc. grew by leaps and bounds. This is all thanks to policies that have been enacted, focused on the development of technology and the pursuit of establishing companies rooted in the high-tech sector.
In the case of Ehang Inc., the company managed to save a lot by using the research and development fund allotted for companies like it. China Daily pointed out that the company's taxable income amounted to 20 million yuan ($3.02 million) accumulated in the past two years. Thanks to the research and development fund, it managed to save from having to pay for the said expense.
This has been the trend in Guangzhou in the past few years. Businesses that deal with technology and innovation have sprung up like mushrooms in Guangzhou, thanks to policies that encourage small and medium-sized enterprises to open in the city. About 11.6 percent of growth has been attributed to the city, with about 436.1 billion yuan in income generated by these industries in the first half of 2017 alone.
Life of Guangzhou shows that this plan has been a long time in the making. Since last year, the city has been planning to invite these industries to put up businesses in the Guangdong capital by allotting a designated zone dedicated to "an innovation zone and 19 industrial parks." By doing this, it is like welcoming the development of high-tech thinking and giving incentives to those with the vision to do so.
Guangzhou has since put up a system of co-development as well as a welcoming nature of innovation and next-generation thinking companies. The capital and lending are already in place; a result of that is a number of start-up companies dealing in innovative technologies that have brought Guangzhou up in the top 3 of Chinese cities with a premium on innovation and technology.
A forward-thinking city like Guangzhou isn't opening their doors only to domestic companies. There are industries like Ehang Inc. and Huawei Technologies Co., and then, there are those foreign-backed companies. Such established companies like Cisco, Cold Spring Harbor Laboratory, and Thermo Fisher Scientific Inc. have all opened businesses and projects in Guangzhou.
With the Chinese government driving a message to the people that they plan to put innovation as a force behind their economy, Guangzhou might be on the right track to leading the cities into the next age.
