Shanghai Municipal Information Service Industry Development Plan

Information service industry is an integration that products, collects, processes, stores, transmits, searches and utilizes information via such modern scientific technology as computer and telecommunication network; and provides services for the society with information products. In 21st century, with more and more apparent tendency of global information industry’s development, information service industry received great development. Information industry international transformation has been changed from the manufacturing to close blending of service derivative products, software, service outsourcing and consulting industry, which has become a significant trend. Shanghai Municipal Government released “ Shanghai Municipal Implementation Guidelines to Boost the Development of Modern Service Industry” with 2005 No.7 document, which clearly pointed out that information service industry is one of the six pole industries of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /> Shanghai modern service industry. In order to closely grasp the opportunity, greatly enhance the development of information service industry and integrated competitive edges of the city, and better serve the key strategy of revitalizing Shanghai through science and education, the government hereby formulated “ Shanghai Municipal Information Service Industry Development Plan” to prioritize the planning and development. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

I. General situation of IT service industry development: 

With the development in recent years, Shanghai information service industry has formed a relatively sound industry system and complete industry categories; the number of information service providers and personnel continues to increase; the overall development trend is promising; the dedication to national economy is increased year by year. Business operating revenue increased from 18.382 billion RMB in 1999 to 65.56 billion RMB in 2004, increasing 32.56 billion RMB, which is 4.38% to Shanghai GDP. There are more than 2000 information service providers in Shanghai and more than 100 thousand personnel working for information service industry. Shanghai Telecom, Shanghai Mobile, Unicom Shanghai and other telecommunication service providers have made stable progress with the emerging of such national websites as Vnet, Eastday; such online game providers as SNDA, The 9 Limited; such renowned industrial e-commerce enterprises as Ctrip, Ebay, 51job, wcoat.com, Bsteel; Linktone and other professional providers; Baosight, Shanghai Xinhua Control Technology (Group) Co, Ltd. and a batch of national renowned software development enterprises; and HSBC Electronic Data Processing, Citibank data center and other information service centers of multinational firms. SNDA, Ctrip, Ebay, Linktone, sfinf.com, The 9 Limited have successfully go public on NASDAQ; Baosight, East-China Computer and others have gone public in Domestic Stock Market; Jiaoda Withub, Huabo, SJTU Sunway Software Industry Ltd., have go public in Hong Kong. In existing classification of   information service industry, software industry generated revenue of 30.278 billion RMB in 2004, increased 50.5 ％ ; telecommunication service generated revenue of 28.493 billion RMB, increased 11.9 ％ ; broadcast and TV operation generated revenue of 2.36 billion RMB, increased 7.2 ％ ; online service generated revenue of 4.429 billion RMB, increased 49 ％ . In terms of industry form, telecommunication service industry stably develops with the overall expansion of telecom market.  Application of broadband internet is developing quickly, e-commerce is gradually popularized; various online services have created vast market. Broadcast and TV media is changing to digital TV; the new media based on digital technology gradually becomes the predominant marketer. With the application of various virtual and entity networks, information service industry realized the integration and sharing of resources, which has become the indispensable approach for enterprise to participate in international competition and realize global administration and operation.

II. Guidelines and Strategic Targets

1. Guidelines

Overall implement the scientific outlook on science development with tightly relying on the strategy of “ Revitalizing Shanghai through Science and Education” and the general target of “ strengthening Shanghai through electronic industry”, firmly grasp the opportunity of the international transformation of information service industry, insist on the development guidelines of internationalization motivation, marketing promotion, information backup and legal system guarantee, starting from system, mechanism and policy innovation, enhance the correct direction of government and policy focusing and lower the threshold of market admission standards. Greatly boost the blending of information service industry with other industries and the interactive development; accelerate the setup of information service industry system matching international metropolis “high-growth, high-capacity, high return, high employment ratio, low pollution, low energy consumption” and endeavor to realize the leaping development of information service industry.

2. Strategic Targets:

With two-year efforts, a innovative administration mode conforming to industrial development requirements and being compatible with market economy has been established; a batch of information service industrial bases with unique characteristics have been built up, municipal or state level information service industry bases with five functions, “R&D, training, incubation, trade, and exhibition” have been concentrated. Endeavor to make Shanghai a national, A&P regional even global IT center, IT products manufacturing center and innovative design center through dislocation competition, emphasizing characteristic and optimize base productivity layout to improve the integrated competitive edges of the base, and make Shanghai a window to introduce world digital culture and promote world cultural innovation. By 2007, information service industry has realized operating revenue of 140 billion RMB; the added value is over 60 billion RMB. More than six large-scaled enterprises and groups have been established with over 5 billion RMB annual business income.

III. Facilitating Principles

1. Government direction and enterprise operation:

Give full play to the basic function of market mechanism resources allocation and the principal role of enterprise, build enterprise brand and uplift international competitive edges through introducing, cultivating and strengthening market subject. The municipal government shall further reform its functions, enhance planning and direction, implements policies concentration, and standardize market administration.   Enhance the sense of service, change our work from approval-oriented to service-oriented, and create better environment for the development of information service industry.

2. Enhance reform and break through obstructs in system:

Break down industry monopolization, boost market competition, enlarge opening-up and create market and policy environment benefiting the development of information service industry. Emancipate the thought and endeavor to meet people’s consumption requirements; encourage the development and supply of healthy products.   Fully realize the important role that information service industry plays in national economy, and boost to optimize the inner structure of information industry.

3. Integrate the resources and coordinate the development:

Enhance the cooperation and information sharing between departments, unify work targets and thus form joint forces; enhance the integrated planning and direction of the industrial chain including “developers, content service providers, operators, Internet inserts providers and users”; boost the consistent coordinating and healthy development of information service industry; enhance the cross-platform, cross-system application of products and personalized level s ; enhance the coordination and resources sharing between enterprises within the region.

4. Emphasize key issues and facilitate the programs by categories:

A batch of informationized programs with significant foundation and functions shall be overall planned and promoted by categories. Enhance the construction of key enterprises, gradually improve and enforce each industrial chain; enlarge information service industry scale through marketing, develop readily marketable products in order to meet the civil and social requirements of information consumption; meanwhile, participate in international content industrial division and explore world market.

V. Functional Symbols

1. Establish seven industrial bases:

Establish national software industry base and national software export base, boost the incubation of software enterprises, support the key software enterprises and enlarge software export. Xuhui District Digital Industry Base shall be established to cultivate products enjoying independent intellectual property in the aspects of intelligence home system, 3G , e-commerce, consumption software, animation, e-press and other digital industries. Changning District Multi-media Industry Base shall be established to mainly cultivate multi-media movie and styling enterprises. The cooperation between East China Normal University and software parks in Putuo District shall be supported to boost the construction of national animation, movie and TV production industry revitalizing base; enhance t he education of animation and online games professionals, and boost the construction of industrial incubation.   Take advantage of the intensive online games producing industries in Zhangjiang HI-TECH Park, rich human resources, strong R&D strengths and excellent network basic conditions and so on, establish Zhangjiang R&D national online games animation industry base and develop cultural and scientific innovation industry at the same time. Establish international info service outsourcing base and direct enterprises to actively participate in outsourcing business of animation products, movie and TV products, call center, software development, R&D design, telecommunication network service, HR system development and administration, finance analysis, settlement center, trade processing, purchasing, and develop outsourcing market.

2. Establish and improve four operating platforms:

Establish international level digital TV telecast platform and positively develop the information service categories, improve digital, network and commercial information resources development; boost the production and operation of online education, e-amusement and commercial information and other multi-media information. Construct broadband, multi-media mobile telecommunication platform and extend value-added service scope. Also boost the construction of ASP data center platform, boost enterprise information solutions operating mode and realize the share of network and systematic resources. Build up municipal e-commerce payment platform, improve mobile payment, online payment, bankcard payment, telephone payment and other payment ways, and provide safe, convenient, reliable, comprehensive and integrated payment services to enterprises and individuals. Essentially boost the swift, healthy and sustainable development of municipal e-commerce business.

3. Establish six industrial backup centers:

Establish software competence facilitating center; enhance the coordination between software enterprises; boost the cooperation between enterprises, and realize the sharing of different technology resources and software products trade and supporting development.

Continue to enhance software assessment center construction and set up a set of integrated software assessment standard, enrich existing service field and provide high-level assessment service to software engineering enterprises. Establish comic and animation games incubating center; boost the establishment of Putuo district based on East China Normal University National Caricature Base and develop multi-media industry focusing on online games and cartoon.

Establish digital industry R&D center based in Xuhui District Digital Industry Base and develop information software industry, digital video engine projects, especially the key technology R&D platform; endeavor to establish an Asian advanced center for developing digital amusement and technological R&D.

Construct information resources and digital products copyright trade center based in Pudong New Area where is full of information content enterprises; associate with Shanghai Media Group, Shanghai Telecom and other enterprises, related districts and counties, actively explore copyright trade norms of digital industry and modes of operation in order to boost the establishment of digital industry value chain.

Encourage and support the cooperation with colleges and bases to establish industry talents training center. Enhance development of outstanding talents and cultivate a batch of core talents enjoying reputation home and abroad, which have authority in their industries and are accomplished in both management and administration.

V.  Fields to emphasize breakthrough:

According to the new trend of information service industry development, grab national policy opportunities and give full play to the privileges of Shanghai . According to the principle of “stressing key issues and facilitating the classified plan”, and focus on key fields such as software, telecommunication, broadcast and TV, Internet service and information resources integrated application and boost the fast growth of Shanghai information service industry.

1. Software industry: 

Enhance the R&D of basic software and produce software products with independent intellectual property in the aspects of operation system, database, and middleware based on components, tools development and so on.   Greatly develop embedded software and industrial application software. Boost the combination of software technology with traditional industry and reform traditional industry with software technology and products. Mainly support the development of open source software with Linux as a representative.

Implement “large-scale enterprise” strategy, encourage software enterprises to merge and restructure and enhance their consciousness of united strengths. We encourage software engineering enterprises to expand themselves both in scale and in strengths; motivate software engineering enterprises to actively explore international market. We also encourage key enterprises of steel, petrifaction, automobile, shipbuilding and other traditional industries to invest in or relocation capitals to software engineering enterprises.

Continue to enhance software industry base construction and constantly enhance the value-added service function and accumulation effect. Enhance the construction of Shanghai software assessment center and improve its guarantee of products assessment and quality. We encourage overseas students to establish software engineering enterprise s in Shanghai . Further enhance the education of senior software talents based on Software College ; encourage various parties to participate in education, carry out vocational education and train a group of skilled software technicians.

2. Telecommunication industry:

Continue to boost the construction of ASP public service system for enterprises. Based on the construction of ASP service and technological standard, we can reduce the cost of enterprise information system buildup and improve efficient implementation of information technology.

Regard interactive TV as the flagship to develop multi-media broadband industry, and motivate the overall development of multi-media with movie industry as majority as well as new type online games, online shopping, online business, online government affairs and so on. Gradually improve the distribution of information service value-added business income. Telecommunication industry will gradually change from the role of traditional network operator to integrated information service provider.

3. Broadcasting & TV industry

Enhance the development of new media in broadcasting & TV industry. Encourage the application of digital technology in digital video, digital audio, data information service and various businesses, and drive the rapid development of relevant industries. Based on the abundant programs made by Shanghai Media Group, start up from content, broadband network, digital TV network and various aspects, being market-oriented, establish IPTV union in-depth cooperation system; improve operating and commercial mode, boost the fast development of program production, release, operation, terminal and other fields to make Shanghai a distribution center of national broadcast and TV program

Cable network providers shall be encouraged to boost the development and construction of HDTV to drive the rapid development of relevant industries.

4. Internet service industry:

Research and formulate the network general standard; unify the transmission and presentation of programs and multi-media information involved in digital information service; enhance broadband Internet application, and boost the construction of social information service platform. Establish the service system of municipal e-commerce, e-processing of government affairs and e-community. Support the construction of community informatization integrated service projects, the construction of public information database shall be boosted to provide public welfare convenient information service for the society. Boost the combination of three networks, gradually improve residents’ capability to use information service public platform, and improve urban information service capacity.

Boost the process of enterprise informatization; realize network and systematic resources sharing; solve such follow-up investment problems of professional network, information security, network maintenance. Support a batch of Internet content value-added service and innovative enterprises with more than 1 billion RMB output value.

5. Comprehensive utilization of information resources:

Information resource market shall be cultivated to enrich the supply of the market. Give full play to the market economic leverage which effects on the demands of information resources, boost the development and utilization of governmental and industrial information resources, and enhance to cultivate the market.   Focus on the cultivation of effective demands and encourage governmental departments to formulate policies and measures on purchase of commodities and services.   direct information service consumption in the way of outsourcing, governmental purchase and so on; support the fast development of culture, publication, broadcast and TV and other industries; boost digital products development and develop information consultation, marketing research, Internet service, information processing and other newly booming industries. Cultivate information market elements, actively enlarge information resources and information products supply and prosper information resources market. Research and improve information resources market supervision system construction, enforce the attack on network intellectual property infringement and illegal e-publication.

Enhance such enterprises as Shanghai Media Group, Shanghai Telecom Co. Ltd., and related districts, counties to establish special evaluation institutions to assess digital product and the trading and protection of intellectual property and technology property; encourage development of original information products and enable the achievements to be transformed as soon as possible so that investors can get returns and the products can be transformed into commodities as soon as possible.

Gradually develop the industry chain of financial information. A batch of financial information service enterprises shall be cultivated to form a industrial concentration. Endeavor to formulate the major financial informatization business criterion, standard of products and technology. Greatly enhance the construction of financial network operation, integrated service and payment network. Establish financial security risk evaluation system, and provide helpful information support and scientific analysis tools for financial risk pre-warning and prevention. Endeavor to formulate the relevant policies and local regulations of Shanghai municipal informatization, establish and improve the relevant service system of Shanghai municipal financial informatization.

In terms of the key fields of modern service industry’s development, the responsibility subject and administration planning of resource collection, maintenance and sharing shall be improved with the key cross-departmental information system as the breakthrough of resources sharing. Focus on information development and application, mainly develop basic database and public database, multi-media database and gradually establish several certain scaled data centers.

Well-equipped facilities attract renowned enterprises: foreign renowned information service outsourcing enterprises shall be introduced to instruct and boost the development of local information outsourcing service enterprises; attract domestic famous enterprises and centralization effect; boost the development of call center, financial analysis, telecommunication network, Internet service, marketing survey, consultation service and other outsourcing businesses development. Platforms shall be established to provide standard processing service and enhance the research, formulation and implementation of information outsourcing service industry in the related aspects of consultation, training, supervision, and certification; optimize the environment, spur domestic demands and development of information service industry, and enable Shanghai information outsourcing service to lead national peers.

VI. Advancing measures

1.  Establish the working structure of “municipality and districts’ coordination, different organs’ combination”:

Shanghai Information Service Industry Promotion and Coordination Office, which is organized by Shanghai Development and Reform Commission, Shanghai Economic Commission, Shanghai Municipal Informatization Commission, Science and Technology Commission of Shanghai Municipality, Shanghai Municipal Administration of Culture, Radio, Film & TV, Shanghai Municipal Administration of Press and Publication, Shanghai Municipal Bureau of Finance, Shanghai Taxation Bureau, Shanghai Administration of Industry and Commerce (SHAIC) and other departments are responsible for the identification of the developing strategies, planning and policies of the municipal information service industry; overall planning and coordinating of key issues of information service industry development.

Direct districts and counties’ governments to establish facilitating system and formulate related policies to distinguish their developmental positioning and implementing processes; enhance investment recruitment and endeavor to enable the concentrated zone of information service industry can produce its functions as soon as possible.

The functions of information service industry associations and other related associations shall be given full play to enlarge the coverage of industrial associations and give full play to the positive effects of industrial associations in the aspects of industrial representative, service, self-discipline, coordination and so on.

2. Lower the threshold of market admission standards and establish new system of information service industry’s development:

In accordance with the requirements and trend of information service industry’s development, and combined with the characteristics of Shanghai information service industry’s development, research and formulate Shanghai municipality’ oriented catalogue encouraging development of information service industry.

Encourage foreign capitals and private-owned capitals enterprises to participate in the enterprises’ assets restructuring and shareholding system transformation. Meanwhile, lower the threshold of market admission standard, attract more enterprises to enter information service industry and form a batch of small and medium-sized enterprises with industrial characteristics.

3. Enhance policy direction and motivate the development of information service industry:

Enterprises registered and paid tax in Shanghai, which are engaged in digital industry R&D, production and service, upon recognition, the enterprises can enjoy the Several Policies and Regulations on Incentive of Shanghai Municipality Software Industry and Integrated Circuit Industry’s Development (Document No.54) released by Shanghai Municipal Government in 2000. Implement incentive policies for information service industry bases and parks, and provide preferential policies and capital for the recognized concentrated zone of information service industry.

4. Greatly support innovation of independent intellectual property:

Establish information service industry development special funds, which shall be used to support information service industry, especially digital technology R&D and industrialization programs. Related departments under Shanghai Municipal Government, districts, counties’ governments shall allocate certain amount of science development funds for information service industry, in order to encourage enterprises the technology innovation sense and capability; the innovation of independent intellectual property shall be deemed as one of appraisal index and reference for obtaining government support.

5. Improve e-commerce service system and boost the development of value-added service with the information content:

Expand online trade business of large and intermediate scaled enterprises, while support to build up the public e-commerce business platform for small and middle sized enterprises; increase investment in business trade enterprises informatization restructure and business trade enterprises shall be supported to establish the information system and marketing network including purchase, selling, and store. Such supporting service systems as digital certification, online payment, logistics delivery shall be improved to establish Shanghai municipal e-commerce platform. Establish and improve e-commerce public service system; improve complaints acceptance and settlement, legal consultation, compensation, arbitration, legal processing and other service procedure; construct value-added service demonstration application projects with information content of finance, logistics, commercial and trade, real estate and other industry.

6. Implement brand strategy and uplift international competitive edges:

Attract renowned domestic and international information service enterprises to establish their head offices or regional head offices in Shanghai . Cultivate professional investment service institutions and encourage leading enterprises to realize cross-region and cross-industry merging and restructuring with the tie of their capital and intellectual property. Assist qualified enterprises with their entry into domestic and overseas capital market financing and endeavor to cultivate a batch of domestic information service industry groups and multinational firms enjoying competitive advantages.

Enhance Shanghai privileged brands promotion and encourage information service providers to participate in different kinds of professional and international exhibits so that they can uplift international reputation of their brands. The marketing promotion of local brands shall be broadened to extend their influence. Implement the protection of intellectual property and guarantee the profits of enterprise. Capable enterprises shall be given support to explore international market, cultivate international brands and uplift their international competitive edges.

7. Direct information service consumption and enlarge the market demands of information service industry: 

Governmental procurement shall give favorable conditions to information service industry. Under the same conditions, the government shall give priority to procuring products and service of local information service enterprises.

Boost the construction of price and administration system conforming to information service industry characteristics; charging classification supervision system shall be improved to reduce the cost of information service, and provide individualized information services to encourage the popularization of information service. The proper guide of information service consumption shall be provided for consumers to enhance their self-protection consciousness. Sound and harmonious informationalizing urban consumption and life styles shall be established to greatly improve the consumption level of information service, and boost the exploration of market demands.

8. Enhance the construction of informatization regulation standards and enforce industrial self-discipline:

Related regulations, rules, standards, and political documents shall be formulated and released to enhance the construction of informatization standard and ensure the informational interconnection and intercommunication; enhance the administration of quality certification and information system. Integrated evaluation index system shall be established to provide legal guarantee for the development of information service industry.

Enhance the construction of social credit system of the industry; starting from the construction of credit system, the information industry shall be instructed to carry out integrity promotion and supervision. Integrity announcement system and integrity database of information service industry shall be established to improve the construction and administration of enterprises’ integrity system.

9. Improve survey and statistics system and method of information service industry:

Combined with economic census, integrate and standardize the collection channels operation data, and give full play to the activeness of related administration departments, industrial association and statistics departments of all districts (counties).

Establish statistics index system conforming to international conventions and representing the characteristics and level of Shanghai information service industry development; establish a regular release system of Shanghai municipal information service industry statistics information and further improve the timeliness, accuracy and authority of statistics data.

The development and trend analysis of information service industry shall be enhanced to establish and improve the supervising, warning, forecasting system of information service industry and closely follow up; indicate the updated situation and development trend of domestic and international information service industry.

10. Establish HR training and incentive system:

Boost to set up the relative professionals’ training system in information service industry. Enhance the cooperation between domestic and overseas universities, and intensify the share of dominant resources and mutual complement with the joint interaction between colleges and professional institutions as the principal part. The key training institutions sponsored by government shall be set up to cultivate the senior international professionals for information service industry. Personnel training and evaluation system shall be established and amplified to ensure the quality and results. The certification and qualification system of pro-technology personnel involved in information service industry shall be improved to roundly accelerate the occupational certification and market mechanism training & examination. Enhance the administration of training programs, certification and institutions.

The system of developing and utilizing “overseas talents” and “EXPO talents” shall be improved and implemented. Various methods shall be adopted to attract outstanding domestic and overseas technical and management talents of information service industry to venture in Shanghai ; enhance incentives to senior talents, for instance, equity incentives, profit split, deduction of individual income tax and other preferential policies; enforce incentive degree and give full play to elites’ initiative.

.