In the summer season of 1987, Ren Zhengfei, then 43 years outdated, based a tiny firm named “Huawei” in an deserted manufacturing facility constructing in Shenzhen Bay.
At that point, Shenzhen was only a gathering place for folks from throughout the nation who have been “diving into the business sea”. Many folks opened small factories right here to undertake the manufacturing of digital parts based mostly on outdated international manufacturing capacities.
However, 38 years have handed. Now, Shenzhen has 1,333 nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises, surpassing Beijing (1,210) and Shanghai (1,032) to rank first amongst all cities in China. This additionally marks that Shenzhen has formally develop into the –
“City of Specialized, Refined, Distinctive, and Innovative Enterprises”!
Recently, the checklist of the seventh batch of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises was publicly introduced. Shenzhen ranked first amongst all cities in China with 347 newly chosen enterprises.
The improvement of know-how shouldn’t be a water and not using a supply or a tree with out roots. How did Shenzhen get its “water and wood”?
01 No Foundation, however Courage
Actually, in the Eighties, Shenzhen was nonetheless a “technological desert”. It is claimed that there have been solely two scientific and technological personnel in the complete metropolis:
One was a tractor repairman and the different was a veterinarian.
Compared with the United States, which has Harvard and MIT, and Beijing and Shanghai, which have prime universities like Tsinghua, Peking, Fudan, and Jiaotong, Shenzhen had nearly no college sources.
The turning level got here in 1987 when Shenzhen issued “Document No. 18”:
It inspired scientific and technological personnel to set up non-public excessive – tech enterprises and clearly outlined property rights.
“Document No. 18” issued by Shenzhen in 1987
This had a powerful impression in China at the moment. Most scientific analysis professors have been used to educating in universities. Even if they’d any achievements, they’d simply submit papers to contribute to the nation, and it was very troublesome to commercialize them.
What about beginning a enterprise on their very own? First, they have been afraid that universities and their employers wouldn’t settle for it. Second, they have been afraid of being criticized by public opinion at the moment. Third, they have been afraid that their achievements can be copied shortly.
However, this “birth permit” from Shenzhen all of a sudden broadened the horizons and raised the hopes of many senior intellectuals.
In the first yr after the coverage was launched, greater than 70 non-public excessive – tech enterprises have been born, together with the now properly – identified Huawei.
It may be stated that with out the clear definition of property rights in “Document No. 18” and the incapacity of scientific and technological personnel to maintain shares with their applied sciences, Huawei couldn’t have been established.
In 2000, Shenzhen encountered one other essential node.
At that point, counterfeit merchandise have been prevalent in China, and most of them have been simply “shoddy imitations”. Public opinion usually believed that China was a producing powerhouse and solely wanted to copy international fashions.
Facing such a improvement bottleneck, Shenzhen determined to pursue impartial innovation. It was the first to name for “building an independent innovation city” and targeted on supporting the R & D funds of plenty of main excessive – tech enterprises.
This format was greater than a decade forward of most cities in China, laying the basis for enterprises like Huawei and BYD to problem the conventional Western market construction.
The third essential node was in 2018.
In 2018, the Ministry of Industry and Information Technology launched a cultivation plan for specialised, refined, distinctive, and revolutionary “little giants” enterprises. The so – known as specialised, refined, distinctive, and revolutionary “little giants” enterprises refer to excellent small and medium – sized enterprises with traits of specialization, refinement, and distinctiveness.
In current years, DeepSeek, Ubtech Robotics, and DJI drones, which have attracted public consideration, are all in the ranks of “little giants”.
Ubtech Robotics
Shenzhen has made big investments on this discipline. After the nationwide – stage cultivation plan was formally launched in 2019, Shenzhen set its sights on the objective of growing “little giants”.
When the checklist of the seventh batch of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises was publicly introduced in 2023, 310 enterprises in Shenzhen had handed the evaluate. The variety of newly chosen enterprises ranked first amongst all cities in China. The cumulative variety of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises in Shenzhen reached 752, exceeding the goal of 600 set for 2025 forward of schedule.
In 2024, the cumulative variety of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises in Shenzhen reached 1,025, and the variety of newly chosen enterprises ranked first in China for 2 consecutive years.
According to the newest knowledge, as of May 2025, Shenzhen has 11,000 specialised, refined, distinctive, and revolutionary small and medium – sized enterprises and 21,000 revolutionary small and medium – sized enterprises.
From surpassing Ningbo in 2022 to obtain the “jump from fourth to third”, to surpassing Shanghai in 2023 to obtain the “jump from third to second”, then narrowing the hole with Beijing to 10 in 2024, and lastly efficiently overtaking Beijing in 2025.
How did Shenzhen handle to surpass one metropolis every year?
02 Break Through Tradition with Market Forces
As a logo of China’s reform and opening – up, Shenzhen might not have the most scientific analysis universities or institutional assume – tanks in China, however it’s the most fascinating place for scientific and technological skills and scientific analysis universities.
Different from Silicon Valley, Beijing, and Shanghai, which depend on the know-how switch from universities, the innovation of enterprises in Shenzhen is extra pushed by market demand.
In Shenzhen, innovation doesn’t occur in the ivory tower however at the entrance – line of manufacturing and in the market.
Where there’s a want, innovation happens. Where there’s a ache level, options are instantly sought.
Ma Huateng, when trying again on Tencent’s entrepreneurial historical past, stated:
“Looking back at many innovation points, we didn’t set up an innovation department… Innovation opportunities usually arise when we find that users complain or are dissatisfied during the process of serving them quickly.”
Simply put, Tencent’s innovation comes from consumer suggestions slightly than plans or analysis laboratories.
The outcomes of this market – pushed innovation mannequin are exceptional.
Tencent was based in Shenzhen. It solely took Ma Huateng slightly over a decade to develop WeChat, which now influences 1.4 billion Chinese folks, from pretending to be a feminine netizen to chat with customers.
Along with Tencent’s development, there are additionally many “little giants” enterprises with world competitiveness in area of interest fields.
In 2024, the variety of nationwide – stage excessive – tech enterprises in Shenzhen exceeded 25,000, with a median of 12 enterprises per sq. kilometer, rating first in China by way of density.
These enterprises might not be properly – identified to the public, however they grasp key core applied sciences of their respective fields.
For instance, Inovance Technology, which makes engines for Xiaomi. Its motors are the core energy for Xiaomi to repeatedly break information on the Nürburgring monitor.
The engine made by Inovance Technology for Xiaomi vehicles
Another instance is JPT Opto – Electronics, which focuses on lasers and laser and optical clever tools in the laser know-how discipline. The cargo quantity of its MOPA pulsed fiber lasers has exceeded that of its American and British counterparts, rating first in the world. It accounts for greater than 70% of the home market share and has remained the world gross sales champion for a few years.
There can be Guangyue Technology, the first enterprise to obtain mass manufacturing in numerous area of interest fields of excessive – energy optical units. In 2008, it established the first excessive – energy optical isolator manufacturing line in China. In 2021, it efficiently developed a sequence of ten – kilowatt energy – transmitting optical cables, reaching the world – main stage. Its associated merchandise have participated in tasks such as the “Mozi” quantum communication satellite tv for pc, the Beijing – Shanghai Trunk Line quantum communication undertaking, and even the Tiangong Space Station undertaking.
Although these “little giants” are usually not giant in scale, they’re like “single – event champions” of their area of interest fields.
One statistic reveals that the common R & D depth of Shenzhen’s “little giants” enterprises reaches 7.63%, and the common annual R & D expenditure is 33.3919 million yuan, greater than the common stage of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises.
In addition, the sixth – batch “little giants” enterprises in Shenzhen utilized for a median of 152 patents and almost 6.5 PCT patents, considerably greater than the nationwide common of 1.7 patents per enterprise. Nearly 30% of those enterprises led or participated in the formulation of worldwide and nationwide requirements.
The “Global Urban Industrial Innovation Index Report” launched by the analysis staff of Professor Chen Xian from the Shenzhen Industry Research Institute of Shanghai Jiao Tong University reveals that Shenzhen ranked first in the complete analysis of the 4 dimensions of business innovation setting, funding, output, and efficiency, greater than cities such as San Francisco, Beijing, and London.
Shenzhen ranks first in the city industrial innovation index rating
Who says that R & D should depend on century – outdated scientific analysis establishments? In Shenzhen, enterprises are the greatest universities, and the market is the greatest professor.
03 Be a “Nanny” Instead of a “Commanding Stick”
Of course, it would not sound like a scientific story in that case many innovation achievements may be made simply by counting on the laissez – faire of the market.
After all, the seeds of innovation want appropriate soil.
The Shenzhen authorities has a “secret recipe” for making ready this soil.
The Shenzhen authorities realized early on that the authorities can’t change enterprises in innovation, however it may possibly create setting for innovation.
Different from the innovation mannequin strongly led by the Singapore authorities, the Shenzhen authorities prefers to be a “nanny” for revolutionary enterprises slightly than a “commanding stick”.
What has this “nanny” accomplished?
First, it has opened up software situations.
We all know that Shenzhen is the “City of Low – Altitude Economy”. Many cities have drone know-how, however Shenzhen was the first to open up flight situations and plan related routes.
In 2018, when drone formation performances have been nonetheless a novelty, the Shenzhen authorities took the lead in opening up a take a look at airspace in Talent Park. After the low – altitude economic system was written into the authorities work report in 2022, 20 software situations have been accelerated for implementation.
In 2024, a flying automotive flew over Shenzhen CBD for the first time
Facing the newest scientific and technological achievements in the market, Shenzhen regards the complete metropolis as a take a look at discipline and tries to open up as many take a look at situations as doable.
This strategy has achieved exceptional outcomes.
In addition to drones, the new vitality automobile business, which is now a number one business, additionally has the help of Shenzhen.
Since 2003, at each essential turning level of BYD’s transformation, the Shenzhen authorities has strongly supported the enterprise, together with constructing a lot of charging piles and supporting the procurement of BYD electrical automobiles.
Now, the electrification fee of buses, taxis, and on-line automotive – hailing companies in Shenzhen has reached 100%, rating first in China by way of the electrification stage of public transportation.
Facing some rising applied sciences, Shenzhen additionally has its personal methodology.
Other cities primarily depend on subsidies and grants to domesticate new productive forces, however Shenzhen’s state – owned property pay extra consideration to market – oriented operations.
Through 4 main fairness funding platforms: Shenzhen Capital Group, Shenzhen Investment Holdings, Shenzhen Capital Operation Group Co., Ltd., and Shenzhen Kunpeng Equity Investment Management Co., Ltd., they help the improvement of revolutionary enterprises as “long – term capital” and “patient capital”.
Statistics present that amongst the first 4 batches of nationwide – stage specialised, refined, distinctive, and revolutionary “little giants” enterprises, Shenzhen Capital Group has invested in 198 enterprises, and Shenzhen High – tech Investment Group beneath Shenzhen Investment Holdings has invested in 46 enterprises.
What are the traits of their investments?
They make investments not after they see the outcomes however at the stage when enterprises want funds the most.
Ni Zewang, the former chairman of Shenzhen Capital Group, revealed that amongst the enterprises invested by Shenzhen Capital Group, 26% are in the begin – up stage, 57% are in the development stage, and solely 17% are in the mature stage.
This early – stage intervention has considerably elevated the survival likelihood of revolutionary enterprises.
Shenzhen’s state – owned property additionally listen to creating bodily area for revolutionary enterprises. Take the Shenzhen Bay Science and Technology Park in Nanshan District, Shenzhen as an instance. After greater than 10 years of operation by Shenzhen Investment Holdings, the park has gathered 191 municipal – stage specialised, refined, distinctive, and revolutionary small and medium – sized enterprises in Nanshan District, accounting for almost 20% of the complete in the district.
Shenzhen Bay Science and Technology Park
In the Shenzhen Bay Science and Technology Ecological Park, greater than 100 AI begin – up enterprises have gathered, which is usually