The strength of an industrial cluster is the core competitiveness of a region.

Today, building robust industrial clusters has become a priority for local investment promotion efforts, and industrial chain-based investment promotion is a key strategy for achieving this goal. Unlike other investment promotion methods, industrial chain-based investment promotion does not rely on competing over policies or land; instead, it involves analysis and planning to attract leading enterprises, using industrial strengths to draw more related industries to the region. Attracting leading enterprises, mapping out industrial landscapes, identifying local strengths, and implementing a "chain leader" system are all key components of industrial chain-based investment promotion. However, there are certain details that are often overlooked, yet they play a crucial role in the formation of industrial clusters...

Horizontal Expansion and Vertical Deepening in Parallel

From raw materials to final products and ultimately to consumers, each link collectively forms a complete industrial chain. This chain involves not only extensive upstream and downstream supply-demand relationships but also collaborative support relationships and value exchange relationships, with multiple industrial chains interconnected both horizontally and vertically. The primary pathways to achieving industrial chain investment promotion consist of four steps: “chain building,” “chain supplementation,” “chain strengthening,” and “chain stabilization.” “Building chains” and “filling gaps” typically focus on vertical investment promotion within the industrial chain. Simply put, this involves attracting enterprises with a core position based on planning directions and leveraging core resources, and then using them as a foundation to radiate and extend, establishing a brand-new industrial chain. "Filling gaps" is an extension of "building chains." It involves conducting vertical investment promotion to address missing links in existing industrial chains, thereby making the upstream and downstream segments more complete. Meanwhile, "strengthening" and "stabilizing" chains begin with horizontal collaboration. By developing comprehensive supporting services in areas such as regional R&D, design, brand marketing, finance, logistics, and information technology, these efforts assist enterprises in expanding toward the high-profit ends of the chain—design and marketing—thereby enhancing the industrial chain’s competitive edge and resilience. Currently, regions with vibrant economies and innovation ecosystems have achieved a good balance between vertical and horizontal integration. However, most regions are likely still in the process of vertical industrial chain investment promotion, with horizontal integration remaining a weak point. If there is only vertical development without horizontal enhancement of industrial support and services, the industrial chain is likely to suffer from a situation where “the leaves are lush but the branches are weak, and the tree is tall but its roots are shallow.” Especially against the backdrop of nationwide efforts to advance scientific and technological innovation, technology-related service industries have become key to driving the integrated development of local science, technology, and the economy. Improving the financial support system for innovation, enhancing intellectual property protection and utilization services, and deeply integrating advanced manufacturing with modern services are directions many regions are currently exploring and striving toward. This also implies that horizontal industrial chain investment promotion requires investment promoters to possess not only an understanding of the industry itself but also knowledge of science and technology innovation, finance, information technology, logistics, and other related fields.

Balancing Leading Enterprises and Specialized, Refined, Unique, and Innovative SMEs

Successful examples of industrial chain investment promotion in many regions have demonstrated the importance of leading and core enterprises in building industrial chains. Like stars, they often play a role in “attracting one and bringing a chain.” However, leading enterprises are always in the minority; in every region, 99% of enterprises are small and medium-sized enterprises (SMEs), and they are the key entities for achieving autonomy and control over industrial and supply chains. “Specialized, Refined, Unique, and Innovative” (SRUI) enterprises, capable of rapid growth, are the resilient cornerstone of the industrial chain.

The development of "Specialized, Refined, Unique, and Innovative" enterprises involves both proactive investment promotion and targeted cultivation. Investment promotion must adhere to the logic of "starting small before scaling up, and starting low before aiming high," avoiding hasty actions. Cultivation, however, is a long-term strategy.Statistics show that among current national-level "Specialized, Refined, Unique, and Innovative" enterprises, those established 10 to 20 years ago account for over 50%. This demonstrates that behind "small yet specialized" enterprises lies sustained dedication and long-term accumulation; a "one-size-fits-all" approach may not be effective. What SMEs need most is targeted support—from policy to capital. During the pandemic, the central and local governments frequently introduced policies to help SMEs overcome difficulties, with assisting enterprises in resuming work and production becoming a key priority for local governments. Similarly, the Beijing Stock Exchange (BSE), which has garnered significant attention recently, has become the main arena where "Specialized, Refined, Unique, and Innovative" enterprises showcase their capabilities. As of now, the BSE has a total of 89 listed companies, of which 57 are "Specialized, Refined, Unique, and Innovative" enterprises, accounting for as much as 64%.Another 51 companies are awaiting listing on the BSE, half of which are "Specialized, Refined, Unique, and Innovative" enterprises. For first- and second-tier cities, these enterprises serve as the foundation and a safeguard; for third- and fourth-tier cities or counties, they may well become the "flagship" and the core.

Integrating Local Planning with Surrounding Cities

To successfully attract investment along industrial chains, the first thing to avoid is a “one-size-fits-all” approach. Only by adapting to local conditions and resources—and integrating the region’s existing economic foundation, geographical advantages, talent structure, and the industrial chain planning of existing industries—can a plan be developed that truly suits local development. “Going it alone” is no longer suitable for economic development; “pooling strengths” is the main theme of progress. As is well known, central cities are abundant in capital, talent, and scientific and technological innovation capabilities, making them suitable for developing high-tech industries; it is most appropriate for the R&D and sales departments of leading enterprises to be located in central cities. County towns, on the other hand, are rich in land and labor resources, making them suitable for manufacturing and processing plants. This approach applies not only to corporate布局 but also to industrial chains. Central cities should prioritize enterprises possessing key core technologies within the industrial chain, while surrounding counties or third- and fourth-tier cities should focus on distinctive industries and supporting industrial chain segments. By each fulfilling their respective roles, the overall regional industrial development becomes more coordinated. Zhejiang has long been a “top performer” in investment promotion and industrial development, demonstrating not only unique methods for attracting investment in central cities but also significant achievements in supporting county-level development. For its 26 mountainous counties, Zhejiang has adopted a “one county, one policy” approach tailored to local conditions, primarily centered on local specialty industries. Additionally, a key focus has been the development of “industrial enclaves” through mountain-sea collaboration. These enclaves, primarily focused on advanced manufacturing, leverage the resources of advanced science and technology innovation enterprises from the “sending” areas to drive industrial development in the “receiving” areas, thereby establishing an industrial and innovation chain characterized by “R&D in the enclave, industrialization in the county.” Moreover, the development of Zhejiang’s 26 counties has already yielded tangible results. Currently, every one of these mountainous counties hosts “specialized, refined, distinctive, and innovative” small and medium-sized enterprises, with a total of 360 such firms. This demonstrates that inter-regional collaboration not only assists central cities in “replacing old industries with new ones” but also accelerates the development of county-level economies, achieving two objectives at once.

Combining Chain-Based Investment Promotion with Innovative Approaches

The approach to industrial chain investment promotion is not static; it must be integrated with other investment promotion methods to achieve optimal results. Industrial chain investment promotion targets the “bullseye,” making local investment plans and strategies clearer, while other methods pull the “trigger,” encouraging enterprises to settle in the region more willingly. Combining industrial chain investment promotion with digital precision targeting leverages “Internet Plus” and big data technologies to map industrial chains, accurately assess current industry conditions, comprehensively gather enterprise information, and establish an investment promotion resource database. Integrating industrial chain investment promotion with industrial funds helps secure policy incentives and financial support for key enterprises along the chain, alleviating the pressure of early-stage R&D for core technologies and making it possible for high-tech enterprises to establish operations and begin production. Integrating industrial chain development with high-level industry forums brings together the region’s leading industries and actively hosts international-level industry forums, gathering top enterprises from across the country to enhance the region’s brand influence. The above are all successful examples of combining industrial chain investment promotion with other methods, but innovation does not stop there. Investment promoters must not only replicate these approaches but also innovate to maximize the impact of industrial chain investment promotion.