Clusters and Innovation of SMEs in Promoting New Quality Productivity

SUN Wenkai, a research fellow at RUC NADS and Deputy Dean of NADS SMEs Research Center published an article on Guangming Daily. The core points are as follows:

The development of characteristic clusters of small and medium-sized enterprises (SMEs) is of great significance in promoting new quality productivity. Currently, SMEs in China face challenges such as high quantity but low quality and relatively weak innovation capabilities. Cluster development can enhance the overall level of enterprises through transformation and upgrading, division of labor, and innovative development. Furthermore, the formation of characteristic industrial clusters brings deeper specialization, increased efficiency, and shared public goods, thereby promoting the application of new technologies and grasping the direction of innovation. Clusters of SMEs' development also brings about a branding effect, solves information asymmetry problems, and makes it easier for enterprises to obtain services and government support.

The author further points out that Clusters of SMEs' development firstly helps to improve the digitalization level of clusters, especially by analyzing the current status of industrial digitalization in China and emphasizing the importance of large digital technology companies such as Huawei, Tencent, China Mobile, and China Unicom in providing digital services to cluster enterprises. Secondly, the clusters' model of SMEs can also create region-specific and culturally distinctive regional brands, reducing the financial pressure on SMEs in brand building, enhancing regional investment attractiveness, and driving local economic growth and industrial revitalization. Finally, the author cites the remarks of Minister of Industry and Information Technology Jin Zhuanglong during this year’s “ministers’ passage”, emphasizing the government's attention to the development of SMEs' clusters and proposing policy guidance and suggestions such as fostering leading enterprises within clusters, strengthening industry-university-research cooperation for innovation, and supporting the development of clusters away from first-tier cities.

Therefore, policy efforts are needed to cultivate leading clusters for SMEs enterprises, promote industry-university-research cooperation for innovation, and promote equalization of regional public services, in order to achieve greater impetus for innovation and high-quality development of SME clusters and thus promote sustained and healthy development of China’s economy. (Translated by ZHANG Yuqing, Proofread by YANG Fanxin)