Foreword
Today's world is experiencing great changes unseen in a century, a new round of scientific and technological revolution and industrial transformation are developing in depth, and promoting the transformation and upgrading of traditional industries and vigorously developing strategic emerging industries have become the theme of current industrial development. Huawei is a global leader focusing on the ICT field, especially in the field of 5G technology. Huawei's success is inseparable from its unremitting investment in technological innovation and R&D, and Huawei's research institute is like the "brain of Huawei", driving the continuous innovation of Huawei's technologies and playing an important role in the development of local strategic emerging industries. Exploring the impact of Huawei's R&D center on the development of local industries will help the local government fully mobilize resources to support the development of related industries and plan for future industries. In this issue, we will introduce the situation of Huawei's Nanjing Research Center.
(1) Basic information
Founded in 1999, Huawei's Nanjing R&D Center has become Huawei's largest software R&D base for telecom software R&D, enterprise network R&D, IP capability R&D, and other products, as well as the provision of customized solutions for data communications, telecom value-added services, and operation support. The Nanjing Research Institute began construction in 2007, covering an area of 1,309 acres, located in Nanjing Yuhuatai Software Avenue, with about 10,000 employees.
At present, Huawei Device Cloud Service has set up 3 regional centers and 15 data centers around the world, and the Huawei Device Cloud Service Global Operation and Maintenance Center in Nanjing is the global operation and maintenance center of Huawei Device Cloud Service, which mainly undertakes the monitoring, system O&M, and management of data centers in China, Asia, Africa, and Latin America.
(2) Analysis of the industrial chain
The industrial chain of cloud computing is long, which is divided into upstream, midstream and downstream, roughly including upstream basic hardware equipment providers, midstream cloud service providers, and downstream industry application software. Based on Huawei's existing business situation, Huawei's layout in the cloud computing industry chain is concentrated in the upstream and midstream. It is mainly for upstream chips, switches/routers, etc., and in the midstream, it is for cloud computing service providers to improve related solutions.
Figure 1 Map of the cloud computing industry chain
(3) Industrial planning
(1) Nanjing City
●Nanjing's electronic information industry ushered in a more rapid development
Huawei's Nanjing R&D Center started construction in 2007 and moved in in March 2010. Since the establishment of Huawei's Nanjing R&D Center, Nanjing's electronic information industry/software industry has developed rapidly, introducing key projects such as CEC Panda TPV LCD modules and complete machines, Hansbury touch panels, and focusing on the construction of Yuhua Software Park, Xuzhuang Software Park, Jiangsu Software Park and other bases. In 2011, Nanjing recognized a total of 1,087 software enterprises, with software business revenue of 152 billion yuan, and in 2012, Nanjing was the first city to be awarded the title of China's famous software city by the Ministry of Industry and Information Technology, with software business revenue of more than 200 billion yuan. With the joint efforts of Huawei and upstream and downstream partners in the industry chain, Nanjing has attracted more than 850,000 software talents, introduced more than 500 enterprises in the industry chain, and generated more than 720 billion yuan in revenue from the software and information service industry.
● During the 14th Five-Year Plan period, we will vigorously promote the scale of the software and information service industry to exceed one trillion yuan
According to the "14th Five-Year Plan for National Economic and Social Development of Nanjing and the Long-Range Objectives for the Year 2035", Nanjing should build characteristic innovation industrial clusters, implement the "125" breakthrough action of key industrial chains, promote the scale of the software and information service industry to exceed one trillion yuan, the scale of the two major industries of new medicine, life and health, and artificial intelligence to exceed 500 billion yuan, and the overall strength of the five major industries such as new energy vehicles, integrated circuits, smart grids, rail transit, and intelligent manufacturing equipment to enter the forefront of the country, and accelerate the expansion of new momentum for industrial development. Vigorously cultivate a number of future industries such as future networks, blockchain, aerospace equipment, new finance, quantum information, low-altitude economy, and security emergency response, and form emerging industry echelons and growth points.
(2) Yuhuatai District
●Give full play to the leading role of the main enterprise of the chain to build a communication service industry cluster
Huawei R&D Center is an important "chain master" enterprise in the communication service industry in Yuhuatai District, and has played a leading role. Since Huawei was put into operation during the 12th Five-Year Plan of Yuhuatai, the 13th Five-Year Plan of Yuhuatai proposes to give full play to the leading role of the two major communication giants, Huawei and ZTE, introduce and cultivate local communication software enterprises, form a complete communication service industry chain, and build a communication service industry cluster;
●Relying on leading enterprises such as Huawei and ZTE to promote the high-end development of the software industry
Yuhuatai District is located in the central part of Nanjing, one of the eight districts of Nanjing's main city, and is also an important national software industry and information service industry center, known as China's famous software city demonstration area. According to the "Outline of the 14th Five-Year Plan for National Economic and Social Development of Yuhuatai District and the Long-Range Objectives Through the Year 2035", Yuhuatai District strives to build a digital-led, software-hardware and "1+2" modern industrial system, promote the upgrading of the industrial base and the modernization of the industrial chain, and establish the brand label of Jiangsu Digital Economy Innovation Center. "1" Digital industrialization: high-end development of software and information service industry, "2" Industrial digitalization: accelerate the development of new urban industries, and cultivate and develop new forms and models of commerce and trade.
Yuhuatai District proposes to build a "one core and three levels" digital economy industrial spatial pattern with global high-tech linkage. Among them, the "Intelligent Innovation Growth Pole" relies on the Yuhua Development Zone to build a Binjiang intelligent manufacturing innovation highland, and encourages leading enterprises such as ZTE and Huawei to carry out industrialization layout in the development zone around new products and equipment in the fields of 5G, big data, cloud computing, and artificial intelligence.
(4) Industry-driven situation
(1) Nanjing City
●Output value scale: Nanjing's software industry is the third largest in the country
The development level of Nanjing's software industry is at the forefront of the country, and Nanjing plans to exceed 1 trillion yuan in software and information services by the end of 2025. In 2001, Nanjing's software industry business income was only 1.8 billion yuan, Nanjing decisively introduced policies to cultivate the software industry, by 2009, Nanjing's software revenue reached 63.2 billion yuan, an increase of 34 times, and the software sales revenue accounted for 14.9% of GDP, second only to Shenzhen and Beijing, ranking third in the country. In 2010, Nanjing was awarded the title of "China Software City" by the Ministry of Industry and Information Technology, as the country's first "China Software City", the scale of Nanjing's software and information technology service industry grew steadily, with an average annual growth rate of 21.7%, and the growth rate of software business revenue after 2016 was flat, but it still maintained an annual growth rate of more than 10%. In 2022, Nanjing's software business revenue will reach 740.8 billion yuan, accounting for 56.12% of the software business revenue of Jiangsu Province and 6.9% of the country's total.
●Enterprise situation: basically realize the full coverage of the information and technology service industry chain
There are more than 3,410 software and information technology service enterprises in Nanjing, accounting for about 69.28% of the number of software and information technology service enterprises in Jiangsu Province, and the number of enterprises ranks far ahead among the 15 sub-provincial central cities in the country. At the same time, it has 127 listed companies, 8 of the top 100 enterprises in China's software business revenue such as NARI Group and Panda Electronics, and 23 key software enterprises encouraged by the state, all of which rank first in the province. According to the Nanjing Municipal Government's plan, by the end of 2025, the scale of software and information services in Nanjing will exceed 1 trillion yuan, employing more than 1 million people, and the software industry will become an internationally renowned brand industry. Nanjing has basically achieved full coverage of all links in the information and technology service industry chain, and through years of deep cultivation, Nanjing enterprises have a certain competitiveness in the country and even the world.
(2) Yuhuatai District
●Output value scale: Yuhuatai District is the core area of Nanjing Software City, China
Yuhuatai District has strong development strength in the software industry. From 2000 to 2011, when the whole region was built into China (Nanjing) Software Valley, relying on China (Nanjing) Software Valley, after more than 20 years of development, Yuhuatai District has become the core area and symbol area of Nanjing, China. In 2022, the district will achieve software business revenue of 260 billion yuan, accounting for about 36% of the city's share and 20% of the whole Jiangsu province. During the 2023 Nanjing Software Expo, a number of major digital economy projects were signed in Nanjing, including 7 projects in Yuhuatai District, with a total investment of 4.34 billion yuan.
●Enterprise situation: The agglomeration effect of software, big data and cloud computing enterprises is significant
Big data and cloud computing are one of the core industries in Yuhuatai District, which has given full play to the leading role of enterprises such as HUAWEI CLOUD, gathered a number of leading industries in the cloud computing industry, and vigorously promoted the cloud migration of enterprises in the district. In 2018, more than 40 Jiangsu enterprises, including Aogong Technology and Anyuan Technology, jointly launched the "Jiangsu Kunpeng Computing Industry Alliance" with Huawei, enabling partners to build the foundation of China's computing industry around Kunpeng and promote the application of Kunpeng industry chain-related products in government affairs, energy, transportation, and other fields.
China (Nanjing) Software Valley is the first software industry base in China, and has gathered nearly 4,000 software-related enterprises and 350,000 software-related employees, including 18 of the world's top 500 and the world's top 100 software enterprises, 35 of China's top 100 software enterprises, China's top 100 electronic information enterprises and China's top 100 Internet enterprises, 811 national high-tech enterprises, 47 unicorns and gazelle enterprises, 14 self-cultivated listed enterprises, and nearly 50 warehousing cultivation enterprises. Software Valley has created about 20% of the province's software business output value, and has become one of the few "100-billion-level software industry bases" in the country. In 2022, the Nanjing Research Institute of Huawei Technologies Co., Ltd. was awarded the "Top 10 Enterprises with Comprehensive Contribution to Local Tax Revenue in Nanjing in 2022".
(5) Summary
In terms of output value, the R&D base of Huawei's Nanjing Research Institute began construction in 2007 and moved in in March 2010. After years of development, the electronic information industry is the pillar industry of Nanjing, Yuhuatai District is located in the central part of Nanjing, is one of the eight districts of the main city of Nanjing, and is also an important national software industry and information service industry center. In 2022, the revenue of Nanjing's software and information service industry will exceed 720 billion yuan, and Yuhuatai District will achieve software business revenue of 260 billion yuan, accounting for about 36% of the city's share and 20% of Jiangsu Province's total.
From the perspective of industry drive, since the establishment of Huawei's Nanjing Research Institute, Nanjing's electronic information industry/software industry has developed rapidly, and the scale of the software and information service industry will exceed one trillion yuan during the 14th Five-Year Plan period. In the 13th Five-Year Plan, Yuhuatai proposes to give full play to the leading role of Huawei and ZTE, introduce and cultivate local communication software enterprises, form a complete communication service industry chain, and build a communication service industry cluster. With the joint efforts of Huawei and upstream and downstream partners in the industry chain, Nanjing has introduced more than 500 enterprises in the industry chain, basically covering all links of the information and technology service industry chain. Yuhuatai District has given full play to the leading role of HUAWEI CLOUD and other enterprises, gathered a number of leading industries in the cloud computing industry, and vigorously promoted the cloud migration of enterprises in the district.
Author: CUHK Consulting
Source: CUHK Consulting
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