Li Yong adds that since hardware cannot meet the demand, software is becoming key to show the competitiveness and investment environment of an area. Binhai New Area is making great efforts in this regard.

Since the establishment of Binhai New Area, it has focused on the development of high and new technology industries. It has helped the high-tech industry become the most significant impetus to spur the economic development of Binhai New Area. By doing so, a solid foundation has been established, with the Tianjin development area being built into an innovation and production base for the high-tech industry.

To attract high-tech companies to set up base and develop in the area, Binhai New Area has constituted and implemented a series of measures and policies to urge the development of the high-tech industry for 10 years. Among these policies, the encouragement of senior professional policies and the promotion of the development of high and new technology policy have helped in its aims.

The director-general of the science and technology department, Wang Fengju, says two of these policies are to help high-tech companies and encourage talents. For instance, these policies provide high-tech companies with favorable prices to rent workshops.

Tianjin development area has also established a policy to take 5% from financial income each year to set up the "TEDA Technological Development Fund" and the "TEDA Technological Risk Fund." to encourage technology innovation. Since 2000, the development area has already provided nearly 1.5 billion yuan (0.2 billion US dollars) for the development of high-tech companies.

Technological development relies on the environment. To further encourage technological achievements and cultivate the industry's configuration to meet the state's industry development policy, the Binhai New Area is looking into brand-new working mechanisms for the technological industry.

It has become the first area to put the "incubator" concept into practice, which is the mechanism to support the development of new company. By doing so, an international center for starting new careers has been established. It provides a solid foundation for the development of innovative technology companies in the development area.

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