Breakthrough Development of Five Major Industries, Development of the Yangtze River Economic Belt "Hubei Answer Sheet": Grasping Innovation and Inclusion in Hubei | Industry | Innovation

Hubei, the province with the longest coastline of the Yangtze River, is bringing more possibilities to the development of the Yangtze River Economic Belt through breakthrough industrial development.

The Outline of Hubei Province's Comprehensive Basin Governance and Coordinated Development Plan, released earlier this year, aims to cultivate the five advantageous industries in the province towards world-class industrial clusters; Another three-year action plan for the breakthrough development of the optoelectronic information industry in Hubei Province, also released at the beginning of the year, concretizes the development goals of the electronic information industry with optoelectronic information as its characteristic - by 2024, the industry aims to exceed one trillion yuan in scale, further consolidating and enhancing its unique leading position in the country.

Hubei Provincial Governor Wang Zhonglin twice described Hubei's industrial development as "breakthrough" in this year's government work report - the past five years have been "rebirth, brilliant transformation, and breakthrough progress in transformation and development"; This year, we will make breakthroughs in the development of five advantageous industries, including optoelectronic information, new energy and intelligent connected vehicles, life and health, high-end equipment, and Beidou.

This breakthrough is particularly evident in the high-tech industry - from 2018 to 2022, the number of high-tech enterprises in Hubei Province increased from 6590 to 20000, an increase of 203.2%; The added value of high-tech industries increased from 665.3 billion yuan to 1.1 trillion yuan, an increase of 65.3%; The proportion of added value of high-tech industries above designated size to GDP has increased to 21.77%

As a major province in science and education, technological innovation is the foundation for the development of Hubei's industry. Wang Zhonglin once described Hubei's advantages in science and education as "suppressing the box's wealth". The data shows that the scientific and technological innovation capability of Hubei region has increased from 10th place in the country to 8th place, ranking first in the central region, and entering the "first square" of national scientific and technological innovation level.

Nowadays, Hubei, which has a strong financial foundation, is attempting to write a "Hubei answer sheet" for the development of the Yangtze River Economic Belt in the face of the dual examination questions of science and technology innovation and industry.

"Chasing Light": Innovation and inclusiveness are genes, striving to break through the "ceiling"

Looking closely at the development of Hubei's optoelectronic information industry, it is not difficult to find many breakthroughs from scratch. In 1976, China's first quartz optical fiber was born at Wuhan University of Posts and Telecommunications, marking the beginning of the journey of pursuing light. In 2001, Optics Valley was established - regarded as the birthplace of China's optical communication industry, where many "firsts" emerged - the first international standard for optical communication, the first 400G silicon optical module, the first 100000 watt fiber laser, the first flexible foldable display screen production line

Opening the halo of Optics Valley and crossing the veins of time, the words "encouraging adventure and tolerating failure" written on the wall decades ago have been transformed into innovative and inclusive genes that continue to be passed down. For many years, Optics Valley has always provided policy support to entrepreneurs at different levels. In 2015, the "Donghu National Independent Innovation Demonstration Zone Regulations" were introduced, which is known as the "Optics Valley Basic Law" and elevates support for innovation and entrepreneurship to the level of the rule of law.

Han Dao, General Manager of Wuhan Optoelectronic Industry Technology Research Institute Co., Ltd., has a deep understanding of this innovative culture in Optics Valley. Even today, Optics Valley still has a very strong entrepreneurial spirit and awareness. "Almost all young people here have entrepreneurial ideas."

On the other hand, the birth motivation of Optics Valley comes from the thirst for new technologies in economic development. In Wuhan's East Lake, where intellectuals are highly concentrated, the entrepreneurial efforts of researchers and the promotion of the integration of scientific research and industry have naturally become another characteristic.

Yan Dapeng is one of the representatives. In 2007, after mastering fiber laser technology, he returned to China and jointly established Ruike Laser with Huagong Technology, initiating the localization and industrialization process of industrial fiber lasers in China. In 2013, the first domestically produced 10000 watt fiber laser was born here, breaking foreign technological monopolies and blockades, resulting in a decrease of about 93% in the price of imported fiber lasers; Nowadays, lasers are moving towards higher end applications - precision welding of high-end equipment such as aerospace. Recently, the "Kuaishou · Ruike Laser" rocket named after Ruike was successfully launched, and the core components of the rocket were welded by Ruike's laser, resulting in a threefold increase in welding efficiency

Ruike has a strong Optics Valley temperament. When discussing the key to technological breakthroughs, Yan Dapeng mentioned several factors - seizing high-end talents who master core technologies, seizing the model of joint research and development by industry, academia, research and application, and seizing the opportunity for the country to attach importance to the laser manufacturing industry.

"Since its early days, Ruike Laser has formed a joint research and application model with universities, research institutes, and users, setting up some basic research and experimental projects, which are undertaken and completed by Huazhong University of Science and Technology. At the same time, the company has explored a collaborative innovation and achievement transformation model of" enterprise+university+scientific research "for carrying out national key scientific research projects." Yan Dapeng said.

Of course, the integration of industry, academia, and research will always encounter gaps. At this time, the platform begins to fill the gap, and the Optoelectronics Research Institute, with the mission of connecting the industrial chain and innovation chain, is one of them. Han Dao described this as a platform that provides specialized and full chain services around the optoelectronic information industry, where some scientific research achievements begin to undergo organized transformation.

Han Dao introduced three services, one of which is institutional and mechanism innovation. Taking the listing and trading of the MOST intellectual property group as a case study, he promoted the decentralization of the "disposal right, approval right, and profit right" of scientific and technological achievements, and continued to carry out research on the reform of ownership or long-term use rights of scientific and technological achievements, inspiring researchers to innovate and create vitality; One is to provide specialized technical service platforms for enterprises with small batches and multiple varieties, where even a sample can be produced and can be modified and iterated at any time, making enterprises more daring to tackle core technologies; There is another type, known as "scenario driven", which provides enterprises with multiple mature application scenarios to reduce the trial and error costs of deep entry into segmented markets. This is also the key to enabling technological achievements to enter the market and achieve industrialization. "For example, we undertake many new infrastructure tasks in the fields of energy, transportation, emergency response, etc. We mine out the needs here, and even turn to incubated enterprises and incubated enterprise products."

Han Dao told reporters that as of now, the Optoelectronic Industry Research Institute has promoted the industrialization matrix of dozens of "bottleneck" technologies, built 11 common technology service platforms, and cultivated over 200 enterprises, including 61 high-tech enterprises.

Ye Qing, former deputy director of the Hubei Provincial Bureau of Statistics, told Pengpai News that there have been significant changes in the development of Wuhan's industry in the past five years. The driving factors behind this mainly come from three aspects. The first is the "Returning Intelligence to Wuhan Project", which promotes the global return of Wuhan alumni's intelligence and capital, driving the rise of projects and funds; Secondly, encourage Han university students to stay and work in Wuhan; Thirdly, every year in Han universities, a conference on the transformation of scientific and technological achievements is held. "It can be said that Hubei's prestigious universities have combined more research directions with Hubei's economic development."

Of course, these are just one aspect of the development of Optics Valley. Thanks to the promotion of innovative genes and the integration of industry, academia, and research, Optics Valley has handed over its "pursuit of excellence" answer sheet. As of 2022, in the field of optoelectronic information industry, Optics Valley has cultivated 7 leading manufacturing enterprises with a scale of 10 billion yuan, 10 national level manufacturing champions, and 60 national level specialized and innovative "little giant" enterprises. The total revenue of the industrial cluster has exceeded 500 billion yuan.

From the perspective of the industrial chain, although the initial industrial advantages were concentrated in fiber optic cables, optoelectronic devices, and other links, over the years, the optoelectronic information industry chain of Optics Valley has been continuously extended and upgraded, and its advantageous areas have covered multiple fields such as optical communication, lasers, and new displays. Currently, Hubei optoelectronic devices account for 60% of the national market share, laser equipment accounts for 50% of the national market share, and Optics Valley's optical fibers account for 25% of the global market share. After the industrial chain becomes more complete, autonomy and controllability become a higher pursuit.

With the intention of "breakthrough", Optics Valley attempts to break through the "ceiling" and accelerate towards "World Optics Valley". At the party working committee meeting of Wuhan Donghu New Technology Development Zone held at the beginning of the year, it was proposed to formulate an action plan for the construction of the World Optics Valley this year, promoting the opening of the construction of the World Optics Valley. This also means that the construction of the World Optics Valley will be fully launched this year.

The Three Year Action Plan for the Breakthrough Development of Optoelectronic Information Industry in Hubei Province also mentions that by 2024, the province's electronic information industry with optoelectronic information as its characteristic will strive to exceed one trillion yuan in scale, further consolidating and enhancing its unique leading position in the country, and laying a solid foundation for building a world-class optoelectronic information industry cluster with global influence.

How to build it? Optics Valley, born out of "innovation," has put in a "box of assets." The relevant person in charge of Donghu New Technology Development Zone previously revealed in a media interview that this year they will strive to create 1 to 2 national laboratory bases, 2 large science facilities will be built and operated, 3 will be under construction, and 2 projects will be approved for implementation. They will introduce 1 to 2 national level major innovation platforms, plan 2 large science facilities ahead of time, and aim to build world-class original innovation sources.

It is reported that Hubei is building a trillion level optoelectronic information industry cluster, with Optics Valley as the core, radiating and driving the "Wuhan Hubei Yellow River" metropolitan area and even Hubei's optoelectronic information industry. At present, in industries related to optoelectronics such as optical communication, laser and intelligent manufacturing, optoelectronic displays, optoelectronic sensing, wireless communication, and precision optics, a pattern of joint prosperity among leading enterprises, innovative enterprises, and related research institutions has emerged.

Enterprises are also laying out. Yan Dapeng told reporters that at the end of 2021, Ruike Laser signed an agreement with Huangshi Economic and Technological Development Zone to invest 5 billion yuan in two phases to build a "Laser Intelligent Manufacturing Base Project" in Huangshi, mainly producing high-power pulse and continuous fiber lasers, high-power semiconductor lasers, solid-state lasers and other products. We will also invest 3 billion yuan to build the Wuhan Ruike Fiber Laser Huazhong Industrial Park project, which mainly includes fiber laser pilot testing, environmental testing, technical training, and special light source production.

The construction of the World Optics Valley is still making efforts. In Ye Qing's view, the driving force for building the World Optics Valley still lies in the combination of science, education, and industry. "If universities in Hubei are better integrated with industry, there will definitely be greater room for industrial development to rise."

The "Elephant Turn" of the Automobile Industry: "It's Not Difficult"

Besides the optoelectronic information industry, automobiles are another pillar industry in Hubei. In the 1950s and 1960s, with a large number of heavy industry enterprises moving inland, Hubei also accidentally obtained opportunities for the development of the automotive industry, and from then on, the development of Hubei's automotive industry began to track.

With both glory and impact, Hubei has chosen to develop new energy and intelligent connected vehicles, with the goal of creating an automotive industry cluster with an annual output value of trillions of yuan, as new energy vehicle tracks are being laid out in various regions.

As an important pole of China's automotive industry, Hubei has developed into one of the provinces with the most complete automotive industry chain and prominent clusters in the country. However, these advantages seem to have become a "constraint" to some extent in the new energy race, which is now more inclined to "light equipment", and the difficulty of transformation is like an elephant turning around.

During an interview, Tan Minqiang, Deputy Chief Engineer and Director of the Technical Center and Party Secretary of Dongfeng Company, described his feelings about transformation and upgrading as "difficult, not difficult": Traditional car companies have accumulated hardware advantages in product and technology, but software in terms of ideological concepts and strategic direction is more crucial for winning the future.

In 2021, Dongfeng Technology Center actively launched a comprehensive reform of the R&D system and mechanism - the direction of new car R&D shifted from product performance to customer experience, with cadres being able to move up and down, employees being able to move in and out, and income increasing and decreasing. It focused on four major businesses: independent business, group specific projects, R&D collaboration, and serving society.

In fact, the idea of reform appeared in Tan Minqiang's mind for a long time. He and the management team of Dongfeng Technology Center made many attempts, such as encouraging talent to "race horses", unveiling rankings, launching a "betting" mechanism for new car model project development, launching the "doctoral doubling plan", planning and organizing technology innovation weeks, new car model long-distance testing and other external exchange and exhibition activities

Tan Minqiang bluntly stated that after the reform, Dongfeng Technology Center has significantly enhanced the market awareness of R&D personnel, optimized the development cycle and efficiency of new car models, and "more importantly, cultivated a group of new energy intelligent connected vehicle talents with new ideas." Dongfeng's transformation and upgrading of new energy intelligent connected vehicles have also been comprehensively accelerated - the new electric series brand "Dongfeng e π" and Dongfeng Nano Technology, which focuses on the A0 level small pure electric market, have emerged. Dongfeng's all-new Mach 1.5T hybrid engine has become the first product in the industry to achieve thermal efficiency certification exceeding 45%

Dongfeng Company also clearly proposed a "three-year action plan for transformation and upgrading" in early 2023, with its business shifting from mainly relying on joint venture business to emphasizing both joint venture and independent operations, and its products mainly focusing on fuel vehicles to emphasizing both energy-saving fuel and new energy.

According to Ye Qing's analysis, there are several characteristics in the development of the new energy vehicle industry in Hubei. Firstly, there are many complete vehicle brands, and car companies such as Dongfeng, Xiaopeng, Weima, and Geely are all laying out complete vehicle production in Hubei. Secondly, Hubei has invested heavily in lithium batteries for new energy vehicles. Thirdly, hydrogen powered vehicles and other industries are also developing well.

At the beginning of 2022, Xiangyang signed a strategic cooperation framework agreement with BYD Co., Ltd. to build the Xiangyang BYD Industrial Park, including power battery production lines and components, zero carbon park, and automotive components projects. The industrial park will be constructed in three phases, with a total investment of 10 billion yuan in the first phase of the project.

Wang Yan, Deputy Secretary of the Party Working Committee and Deputy Director of the Management Committee of Xiangyang High tech Development Zone, who participated in witnessing BYD's settlement in Xiangyang, told reporters that Xiangyang itself has a good foundation in the automotive industry, but it urgently needs transformation and upgrading. Therefore, at the end of 2021, after keenly capturing information about BYD's intention to expand into the central region, the Xiangyang government quickly began to connect with BYD. Several city leaders led teams to negotiate with BYD, and it only took 96 days to receive the contract. "By introducing BYD, we have seized a turning point in the development of new energy vehicles. This can effectively compensate for the shortcomings of Xiangyang's new energy battery industry, enhance the driving force and cohesion of the city's new energy vehicle industry, attract relevant upstream and downstream industries to cluster and develop, improve industrial structure, enrich industrial formats, and thus enhance the comprehensive competitiveness of Xiangyang's new energy vehicle industry," said Wang Yan.

According to BYD, a total of 16 battery production lines are planned in Xiangyang Park. At present, the infrastructure and interior decoration of the first module have all entered the final stage, the eight production lines have all been put into production, the infrastructure of the second module has begun to end, and the interior decoration is about to enter the final stage. Up to now, two production lines have been put into production, and it is expected that all 16 production lines will be put into production in the third quarter of this year. At that time, a production capacity of 30GWh will be formed, which can meet the assembly of 600000 vehicles, with a production value of over 14 billion yuan, and provide more than 10000 job opportunities.

In addition to BYD, power battery giants such as AVIC Lithium, CATL, and Yiwei Lithium have also successively invested in Hubei, with a planned production capacity of 350GWh during the 14th Five Year Plan period.

From Dongfeng to the BYD Industrial Park in Xiangyang, it can be seen that the automotive industry in Hubei is seeking comprehensive change.

In 2022, the production of new energy vehicles in Hubei Province reached 293000 units, a year-on-year increase of 98%. However, the "overtaking" mode has been initiated. At the beginning of this year, the "Three Year Action Plan for Breakthrough Development of New Energy and Intelligent Connected Vehicle Industry in Hubei Province" and the "Key Task List for Breakthrough Development of New Energy and Intelligent Connected Vehicle Industry in Hubei Province" were officially issued, aiming to achieve a trillion yuan output value for the automotive industry in Hubei Province by 2024, with the output value of the new energy vehicle industry exceeding 300 billion yuan.

The above plan outlines a new development pattern - leveraging the leading enterprises such as Dongfeng Company to create a new industrial development pattern with "one valley" as the core, "one corridor" as the support, and "multi-point" coordination.

It is worth noting that the electrification transformation of the new energy vehicle industry has begun to shift towards an intelligent transformation trend. Liu Haijun, Director of the Hubei Provincial Department of Economy and Information Technology, once described the advantages of the Hubei automotive industry as "having a good industrial foundation, strong supporting capabilities, great innovation potential, and strong investment momentum.". Perhaps, in today's window, Hubei can seize it.

Digital Economy: Releasing Multiplying Effect by Combining with Advantage Industries

In 2022, the added value of digital economy in Hubei Province reached 2.4 trillion yuan, contributing over 60% to economic growth. A recent report on the development of the digital economy released by Hubei Province shows that from 2018 to 2021, the average annual growth rate of the added value of the core digital economy industries in the province was 18.01%, far higher than the GDP growth rate of the same period. At the same time, Wuhan continues to strengthen the construction of new infrastructure represented by 5G, and 5G construction and development have entered the forefront of the country.

Science and education resources, "optical core screen end network", and new infrastructure provide guarantees for the development of digital economy in Hubei.

Wuhan, Hubei Province, is one of the top nodes in five industrial Internet countries. According to the paper of Chen Jian and others from the Chinese Academy of Information and Communications, the two basic principles for the construction of China's top nodes are to favor provinces and cities with developed industries and many business needs; Tilt towards network operation units with strong network security capabilities.

Since November 22, 2018, when the national top node of industrial Internet identity resolution was launched, it has increased by nearly 50 times in three years, and the cumulative number of identity resolution registrations has exceeded 10 billion. At present, Wuhan's top nodes radiate to the four provinces of Hubei, Hunan, Henan, and Jiangxi, achieving the acceleration of industrial digital transformation in the four central provinces.

In recent years, multiple leading enterprises have landed in Hubei. The reporter learned from Tencent that as early as 2017, the company had signed a strategic cooperation agreement with Hubei Province to jointly promote the development of smart cities and digital industries in Hubei Province. Afterwards, the two sides carried out multiple cooperation projects in the fields of smart cities, smart healthcare, smart education, smart transportation, and smart cultural tourism.

The combination of digital economy and advantageous industries releases a multiplier effect, and Tencent is a participant in it. For example, Tencent teamed up with Dongfeng to establish a joint innovation laboratory, and currently, collaborative projects such as intelligent cockpit, digital marketing, and automotive safety have been implemented; In the medical field, emergency specialized CT equipment equipped with "Tencent Seeking Shadow" AI has been deployed to numerous hospitals in Wuhan during the outbreak of the epidemic

The development of the digital economy is given greater expectations. The "Hubei Digital Economy Strong Province Three Year Action Plan" proposes that by the end of 2024, the added value of the core industries of the digital economy will double, reaching 550 billion yuan, striving to reach 580 billion yuan, and basically build a national digital industrialization leading area, a national industrial digitalization leading area, a data element gathering area, a central region data governance model area, and a new infrastructure central hub node.

In terms of layout, relying on the current "strong provincial capital" and "dual pillar" pattern, we support Wuhan's breakthrough development of digital economy, cultivate digital industry clusters with international competitiveness, tilt towards Xiangyang and Yichang in infrastructure and major project layout, leverage the radiation and driving functions of Wuhan, Xiangyang, and Yichang metropolitan areas, encourage Ezhou, Jingzhou, Shiyan and other places to accelerate the layout of digital economy characteristics such as smart logistics, smart home appliances, and green data centers, and form a development pattern of "one main leading, two wings driving, and multi-point support".