The Tongji-Rim Knowledge-Based Economic Circle (hereafter the “Tongji-Rim”) is an area of clustering formed with the aid of the overflowing knowledge of the preponderant disciplines at Tongji University. This area has witnessed the interaction and development among knowledge, talents, industry, and urban space, and it has become a place for the agglomeration of knowledge and service industry, equipped with clustering talents, a complete industry chain, various levels of supply, high added value, low energy consumption and pollution, and a strong radiating capacity. The output of the “Tongji-Rim” is 5 billion yuan in 2005, 20 billion yuan in 2012, and over 30.5 billion yuan in 2015. This “Tongji-Rim” is created in the “chemical reaction” between the market demand and the endogenous competitive advantage in this region in a specific period. The mechanism of the Yangpu District for “the integration and interactive development of the universities, local communities, and technology parks” has played an important role in boosting its growth from the initial spontaneous state to the ultimate maturity. The author believes, the development of the “Tongji-Rim” has greatly benefited from the industrial innovation ecosystem which has gradually become mature, and such an ecosystem has the following three characteristics.

Figure One: The observation on the trend of industrial agglomeration in the “Tongji-Rim” based on the statistics of operating income in 2004, 2008, and 2013 Economic Censuses

Viscosity: The subjects such as enterprises, universities, scientific research institutions, local government, intermediary organizations, trade associations, and financial institutions etc. are very active in the industrial innovation ecosystem. When checking whether such an ecosystem is healthy or not, we should examine how big the “viscosity” is among these subjects and whether such “viscosity” can attract more exterior factors of production at a high level.

①The enterprises in the “Tongji-Rim” are inextricably intertwined. If we compare the “Tongji-Rim” to the plant community in nature, then we can find the tall “arbors” there – large enterprises with the output value of “several billions”, such as Shanghai Municipal Engineering Design Institute, the Architectural Design and Research Institute of Tongji University, and Shanghai Posts & Telecommunications Designing Consulting Institute, etc. All these enterprises are fully equipped with strong qualifications, a large number of talents, and the outstanding comprehensive service ability. Besides, we can also find the “shrubs”, that is, the medium enterprises with the output value ranging from “tens of millions” to “hundreds of millions”. Lastly, we can find the “turfs” and the “moss”. They are the small enterprises or the microenterprises with the number of employees in single figures or double figures, accounting for 95% of the total number of enterprises in the “Tongji-Rim”. There are not only intimate cooperation and economic connections but also frequent non-economic communication and interaction among these enterprises. There exists the vertical division of labor in the industry chain, the horizontal subcontracting of specific engineering services, and the cooperation in the services of technical consultation, which has indicated a strong complementary and symbiotic relationship among them.

②The disciplines and the industry are interacting with each other and at the same time developing together. Tongji University has played a role as the “soil” in the industrial innovation ecosystem of the “Tongji-Rim”. There is benign interaction between the preponderant discipline resources of Tongji University and the enterprises surrounding it. On the one hand, the university provides the enterprises with free lectures, books and resources, laboratory equipment, detection services, management training, and expert consultation, etc. On the other hand, the enterprises provide the university with internship opportunities, scientific and research programs, and venture funds for students. The innovation elements such as talents, capital, technology, information, and social network of the university and the enterprises are highly integrated so that a healthy symbiotic pattern is formed along the chain of disciplines, the industry chain, and the innovation chain. The enterprises can obtain the knowledge of different disciplines and get the technical support and innovation inspiration from Tongji university, and in the process of interaction with the enterprises, the disciplines of Tongji university can be improved and developed by means of discovering and narrowing the gap between the theoretical research and the real practice, as well as detecting and doing away with the defects of the scientific research and method in solving the practical problems. In addition, the university can initiate new research and adjust the plan for the development of the disciplines in accordance with the development trend of the industry.

③The government is devoted to enhancing the “viscosity” of the system. If we compare the market demand and the macro-environment to the environmental elements such as “sunlight”, “humidity”, and “wind” that are essential for the development of the regional economy, then the government can be regarded as the “forest ranger” whose job is to plan the space, select the tree species, conserve the water and soil, and manage the environment, with the aim of enhancing the “viscosity” of the system and maintaining the suitability of the system for development. In 2007, The Planning Outline of the Tongji-Rim Knowledge-Based Economic Circle was issued, and afterwards the Yangpu District government integrated the resources in the region and made great efforts such as planning the space, improving the environment, constructing the carriers for the industrial development, building the platform for public services, reinforcing the interaction among the talents, and creating a good atmosphere for the industrial development, etc. In this way, the Yangpu District government managed to enhance the “viscosity” of the industrial innovation ecosystem in the “Tongji-Rim” and boost the formation and development of the innovation clusters in this region.

Figure Two: The observation on the change in the industrial structure of the “Tongji-Rim” based on the statistics in 2004, 2008, and 2013 Economic Censuses

Elasticity: There must be good elasticity in a healthy industrial innovation ecosystem and the same goes for the “Tongji-Rim”. Firstly, there is enough space for the growth of each type of the subjects. Secondly, a cultural atmosphere with relatively great tolerance has been formed.

①There is ample space for the growth of the enterprises. In the research, the author has found an interesting phenomenon, that is, the correlation coefficient between the gross output of the “Tongji-Rim” and the supply of the carriers is as much as 0.98. The carriers for the industrial development in the core zone of the “Tongji-Rim” are mostly located in the following three areas. The first is the construction of the area along the Chifeng Road, which was initiated in 2001, including the construction of the No.65 Tongji Incubator, the construction of the No. 63 Hudong Science Park, and the renovation of “the Street of Modern Architectural Design” in Chifeng Road. The second is the construction of the area along the Guokang Road, which was initiated in 2003, including the construction of the Base for Entrepreneurship in Guokang Road, the renovation of Guokang Road, and the expansion of Shanghai International Design Center and Shanghai Municipal Engineering Design Institute, etc. The third is the construction of “No.1 Design Field, Shanghai” on the Eastern side of Siping Road, which was initiated in 2010, including the construction of the Architectural Design and Research Institute of Tongji University, etc. The total area of the carriers for the industrial development in the “Tongji-Rim” has increased from 288, 600 ㎡at the end of the tenth “five-year” plan to 523,000 ㎡ at the end of the eleventh “five-year” plan, and now the total area has exceeded 1 million ㎡. According to Figure One, basically the construction of the carriers for the industrial development in the “Tongji-Rim” can keep pace with the industrial agglomeration there, which has demonstrated that the continuous steady supply of the carriers has provided enough space for the development of the various enterprises in the “Tongji-Rim”.

②There is a cultural atmosphere with great tolerance. The relationship among the subjects in the “Tongji-Rim” is a relative equal one. Employees can leave their company to start up their own businesses, they can still seek support and cooperation from the company in this process, and they can even return to work for the company if they fail in their business startups. Such phenomena are quite common in the “Tongji-Rim”. Also, Tongji University has provided all kinds of convenience for the development of the design industry in this area – employees working in the enterprises within this area can get access to the resources in the university library, and they, as the boarders, can also pay a stipulated amount of money to apply for a meal plan at Tongji university and enjoy the delicious meals there. To sum up, all these arrangements have helped create a “flexible” space for the growth of the entrepreneurs.

Vitality: The development of the “Tongji-Rim” has lasted for over 10 years and no decrease in vitality can be seen. The following phenomena well demonstrate such vitality.

①The update speed of the enterprises is very fast. According to the statistics in 2008 and 2013 Economic Censuses, the proportion of the newly-established enterprises in most industries in the “Tongji-Rim” is over 50% on average, and the proportion of the newly-established knowledge intensive enterprises, such as the service industry of professional technology and the service industry of software and information technology is even higher. The relatively high “activation rate” of the enterprises has well demonstrated that the industrial ecosystem in the “Tongji-Rim” has the multi-dimensional driving force for dynamic development, expediting various start-up companies and attracting a great number of enterprises elsewhere to this circle.

②The industry in the “Tongji-Rim” keeps pace with the development of the society and the times. By sorting out the codes of enterprises involved in 2004, 2008, and 2013 Economic Censuses, it is found that the industrial structure of the “Tongji-Rim” is undergoing adjustments, with a trend of becoming more and more technology intensive. As is shown in Figure Two, the proportion of the operating income for the real estate development has plummeted from 24.2% to 8.8% while the proportion of the operating income for the engineering technology industry (including engineering management service, engineering survey and design, as well as planning and management) has soared from 22% to 37.5%. Besides, a gradual increase can be seen in software engineering and education. Although the industry within the “Tongji-Rim” is mainly comprised of architectural design, city planning, and engineering consultation, etc., some new developments can be seen in other areas such as traffic planning, industrial design, eco-design, environmental protection engineering, etc.

③Innovations are springing up. The “Tongji-Rim” is a place with the high agglomeration of innovation resources, and plenty of innovation chances and ideas can be found in this area. Here the innovation is not only about the invention of concrete products, technology or services; it is also about the creation at different levels, such as concepts, methods, application, marketing, and business modes, etc. A large number of innovative enterprises, teams, and talents have gathered and flowed freely here, which has imparted the enduring vitality to the “Tongji-Rim”.

Note:
The above figures are made by Wang Jialu, Liuxiao, and Li Bowen, and this article first appeared in Jiefang Daily on the following website: https://newspaper.jfdaily.com/jfrb/html/2016-01/14/content_165667.htm