PUTUO District government’s efforts to develop Shanghai Universal Software Park is paying dividends both on the innovation front and as a contributor to Shanghai’s finances.

The high-tech industrial park — which focuses on software, the information service industry and cultural creativity — has received a number of honors and titles since being set up by the government in 2004.

Covering a total construction area of 160,000 square meters, the park is one of the largest high-tech industrial clusters in Shanghai’s downtown area.

The park’s total output value has topped 20 billion yuan (US$2.9 billion). Last year it contributed 802 million yuan to the city’s tax base, up 71 percent from 2015. It also attracted investment of 742 million yuan last year.

Today the park is home to 1,142 companies — with more than 85 percent engaged in high techniques and nine publicly listed — and more than 18,000 highly skilled workers and professionals, including two innovation talents of the Ministry of Science and Technology. Last year, 252 enterprises set up in the park.

In the first quarter this year, the park collected 515 million yuan in tax, up 141 percent over the same period of last year. The tax to the district jumped 136 percent to 127 million yuan.

Business incubation success has brought rewards.

Among honors and titles the park has garnered are: the National Cultural Industry Demonstration Base, Shanghai Big data Industry Innovation Base, Shanghai Mobile Games Incubation Industry Innovation Base, the Shanghai Star Software Park (lead type), Shanghai Service Outsourcing Park, Shanghai Software Export (Innovation) Park, and Shanghai Electronic Demonstration Park.

In turn, Shanghai Universal Software Park has helped to boost the local economy and technological innovation.

Companies in the park primarily cover the categories of Internet video, mobile games, software and information service. It has attracted celebrated enterprises that include Pocker City, Dnion Technology, Alibaba Pictures, Union Pictures, the China headquarters of Unity Technologies, Ourpalm Co, Skytech Information Technology Co, and Brand Town.

Some software and information service enterprises also provide content and technical support for social media and video-sharing websites, such as Youku and iQIYI.

More than 60 percent of employees in the park hold at least a Bachelor’s degree — and many entrepreneurs there are outstanding talents in science and technology innovation.

Talent pool

The park has also collaborated with local universities in research and development, talent training and cultivation. A talent pool has been established for the park’s enterprises and technological innovation has maintained a strong momentum of growth. More than 1,500 computer softwares have registered intellectual property rights.

The park is now an important base for the industrialization of research and development achievements of high-tech enterprises and colleges.

This year the park plans to contribute at least 240 million yuan to the taxation of Putuo District, a 15 percent rise over last year, park officials said. Newly introduced enterprises in 2017 are expected to contribute tax of 15 million yuan.

Tax is one thing, innovation is another.

Key business projects are under way at the park. The Huada Building for scientific entrepreneurship will be developed into an e-commerce cluster housing renowned enterprises such as Skytech Information Technology Co and Shanghai Reiley Technology Ltd. The Google search experience center has also been launched in the park.

A number of e-commerce enterprises are set to join them and each will receive a tailored public service infrastructure and professional guidance with regard to support policies.

Over three consecutive years, the park plans to introduce and foster 15 software and IT enterprises, each with an annual output value of more than 100 million yuan. Listed companies will also be encouraged to settle down in the park.

Three years down the line, the annual turnover of all enterprises in the park is expected to exceed 40 billion yuan, contributing more than 1.5 billion yuan to the tax base.

Software and IT companies will take up a large proportion of the total — more than 98 percent. The park will also establish up to five public technology service platforms to help startups to reduce research and development costs.

The park’s National Cultural Industry Demonstration Base aims to spare no effort in technical research and development and business incubation for small and medium-sized enterprises. It will develop a complete industrial chain of cultural creativity, processing of creative products and talent training.

The park will help to enhance the core competitiveness of cultural products, build up platforms of financing and other services, as well as attracting more creative talents.

A more coherent industrial layout will take shape in the park, too. With the newly launched virtual reality (VR) and gaming business sector of Ourpalm Co, the park will support the enterprises to set up a VR laboratory and experience center.

Incubation base

An incubation base for VR and gaming industries is to be built. Mobile games will be further developed in collaboration with companies such as Poker City and Unity Technologies.

The digital studio built by Cenic Media will also bring in more film and TV companies and drive the development of post-production processes.

The park is based in Shanghai, but it has a global strategy. It will collaborate with SPD Silicon Valley Bank in discovering and encouraging more promising international startups in IT, information and digital domain.

The park will also strengthen its connection with capital markets to boost the development of cultural companies. Capital and the cultural industry will be integrated with the park’s collaboration with Shanghai M&A Financial Agglomeration District.

Regular meetings and salons will be held to strengthen communication and coordination, and the park plans to set up a foundation for the future investment of cultural companies. Companies applying for a listing will receive training and guidance.

Zhang Yifan, chief executive of Shanghai Reiley Technology, describes what has happened to the company since coming to the park two years ago.

“We have witnessed the rapid development of the park in both hardware and software,” Zhang said. “With the operation of Metro line 13, the park has a convenient location. Enterprises also have opportunity to exchange with banks, government officials and other companies during regular events held by the park.”

Putuo district government and the park and the district government have focused on providing support in labor, training and financing to create a good environment and facilities for people to start businesses.

Wang Wenbin, vice president of Skytech Information Technology Co, said that as an Internet company, it had benefited considerably from a favorable fiscal policy and guidance in research and development since setting up in the park 11 years ago.

Wang noted that ancillary facilities at the park such as dining and transportation have also improved.

The local government offers special funding to encourage business projects in the park. By the end of last year, 62 projects in the park had received financial support totaling 120.4 million yuan.