Innovative cities in China: Lessons from Pudong New District, Zhangjiang High-tech Park and SMIC Village

Although the pace of development in Chinese cities over the past decade has been unprecedented, future economic progress in China may be increasingly constrained by limitations in the social structures that serve to attract skilled labor. To frame this contention, we present a model of economic development that describes what has happened in Shanghai and that we refer to as the Innovative City Development Life Cycle (CDLC) model. The model and issues are highlighted by a case study of the Pudong New District (PND) in Shanghai and our observations about one particular area of PND, the Zhanjiang High-Tech Park (ZHTP). Although much of what has been seen in Shanghai and Pudong is consistent with recent theories of city innovation, central control of the CDLC leaves open the question of whether the Shanghai model is a sustainable one. In particular, the influence of multinational enterprises (MNEs) in recognizing and supporting social innovations is likely to be essential to future success in Shanghai. The question is whether these innovations will be allowed to continue or if they will be controlled by central authorities in a way that will derail attempts to attract the necessary high-tech human capital.