ABSTRACT
As is widely known, Beijing is the center of Chinese education and technology. However, during the period of planned economy from 1949 to 1978, Beijing mainly relied on the development of industry, especially heavy industry, instead of its technological research and development advantages. The Chinese government took the development of industry, especially heavy industry, as the key to the modernization of Beijing. After 30 years of development, Beijing was transformed from a consumption-oriented city with few industries into a production-oriented city with an industrial output second only to Shanghai. The choice of this development path was a mistake. Not only did Beijing fail to benefit fully from its core comparative advantages, but an inharmonious regional relationship was also formed. Following the reform and opening up of China in 1979, Beijing began to transform its economic development method. The advantages of technological research and development started to emerge, mainly reflected in the development of the Zhongguancun (ZGC) Science Park, which promoted the technological innovation abilities and the industrial upgrading of Beijing to some extent. The ZGC Science Park is the largest cluster of semiconductor, computer and telecommunication firms, and is the biggest science park in China. The proportion of tertiary industry in GDP and employment rose to over 70 per cent, which was much higher than the figure for Shanghai. In 2009, the State Council made an official reply, agreeing to build the Zhongguancun national independent innovation demonstration pilot project required to promote independent innovation and radiate the driving abilities of Zhongguancun comprehensively, and to transform Zhongguancun into a technological innovation center with global influence (State Council 2009).
