China’s Greater Bay Area to rival the world’s leading bay areas, San Francisco, New York and Tokyo

China’s Greater Bay Area (GBA) is set to rival the world’s leading bay areas in San Francisco, New York and Tokyo, according to Cushman & Wakefield.

A key priority of the GBA initiative is to transform the region into an innovation and technology hub. Dubbed by a number of observers as China’s “Silicon Valley”, Shenzhen is well-positioned to play a leading role thanks to its solid foundation of R&D and technology.

High-tech industries are a pillar of Shenzhen’s economy, contributing more than 30 percent to the city’s GDP. Moreover, the sector has witnessed impressive growth in recent years. In 2017, the industry grew by 12.2 percent compared to the previous year, achieving a value added of RMB736 billion ($106 billion), more than triple the level of 2009. That is well above the overall GDP growth of the city, which increased by 8.8 percent over the same period.

The astonishing development of the city’s high-tech industry has been driven by massive support from the local government. In 2017, the city’s total investment in R&D surpassed RMB90 billion ($13 billion), accounting for 4.1 percent of the total GDP. That is well above the country’s average target of 2.5 percent set by the 13th Five-Year Plan and puts it on par with Israel and South Korea, which rank first and second, respectively, in terms of R&D investment as a percentage of GDP at a country level.

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