Firstly, Beijing is striving to optimize spatial deployment for science & technology innovation. Beijing is actively pooling its innovative elements together spatially. The city has “Three Town & One District” program as the main platform for its science & technology center, and is arduously building a complete set of science & technology innovation industrial chain featuring “infrastructure-fundamental research-application research-achievement commercialization-sophisticated industries”. Among them, Zhongguancun Science Park is systematically putting together fundamental, frontier and key technologies, improving its openness for global innovation resources to be gathered here in Beijing, as well as building itself as a starting place for science & technology innovation, a source of original innovation and a main ground for independent innovation. Huairou Science Park sets its vision for long-term scientific layout. It is building plenty of major science-related equipment such as comprehensive extreme conditions laboratories, terrestrial system numerical modeling and high energy synchrotron radiation source, and forging a comprehensive national science center as well as building a world-class source for original innovation. The Future Science Town will be dedicated to building “Two Valleys and One Park” in the fields of energy and life science, forging a world-leading technological innovation high ground. Furthermore, Beijing Economic-Technological Development Area will play the role of commercializing the achievements from the three major Science Towns and build itself into a major front that is an open cluster of innovation-driven industries dominated by sophisticated sectors.

Secondly, Beijing is committed to speeding up its building of sophisticated economic structure. Beijing has outlined and carried out guidance and opinions regarding 10 major sophisticated (high-grade, precision-based and advanced) industries and quickened its steps to foster the “twin-engine” of next generation IT and medicine & health. Moreover, Beijing has set up science & technology innovation fund of funds (FOF) to ensure adequate patient capital and long-term capital and encourage sustained innovation for hard and deep technologies. Furthermore, Beijing is building a coordinated service platform to facilitate science & technology achievements off the ground, enrich application scenarios and help those promising research findings to be applied in market.

Thirdly, Beijing is dedicated to building a high ground for talent and innovation. Beijing is building a number of world-class research institutes of new types such as Beijing Academy of Quantum Information Sciences, Chinese Institute for Brain Research, Beijing and Beijing Academy of Artificial Intelligence, and exploring new models for science research management and organizational structures and creating a stable supportive mechanism and a model for open-minded recruitment. Namely, it means Beijing will expand its talent portfolios and include talents like engineers, IP lawyers and product managers into its talent support plan. Moreover, Beijing has carried out 20 policies regarding exit and entry and another 20 new policies for Zhongguancun international talents to help recruit more talents. In other words, it means Beijing will attract and groom a number of strategic sci-tech talents and leaders as well as industry leaders, and improve its service guarantee in a number of aspects including talent household registration, housing and children education, thus creating an even more appealing eco-environment for talent development.

Over recent years, Beijing’s National Sci-tech Innovation Center has witnessed prominent achievements. As assessed by Nature Index 2018 Science Cities, a supplement of Nature-a British journal, Beijing ranked first among 500 cities across the world, leading other international innovation cities including Paris, London, New York and Tokyo. As per the Global Science and Technology Innovation Sourcing City Analysis Report issued by Springer Nature Group, Beijing ranked third in terms of original innovation contribution, second only to New York and Boston. As per Doing Business 2020, a World Bank Group flagship publication, Beijing as a sample city gained 78.2 points, ranking 28th. As per the Global Innovation Index 2019 issued by World Intellectual Property Organization (WIPO), Beijing ranked fourth in world science & technology clusters, surpassing well-known international tech-clusters such as San Jose-San Francisco of U.S., Osaka-Kobe-Kyoto of Japan and Boston of U.S.-Cambridge. This means Beijing is quickening its steps to become a new and emerging high ground in the global innovation network.

Fourthly, an institutional mechanism conducive to vitality release is beginning to take shape in Beijing. Beijing government has been working to make a series of institutional breakthroughs around fields including science research management, performance assessment, resource allocation and research finding translation, and invigorate all types of innovation entities. At present, there has formed a regulatory and policy guarantee system that is multi-phased and multi-leveled and has a broad range of entities and wide coverage. The “Belt & Road” science & technology innovation Beijing action plan has been carried out to make Beijing more accessible and attractive to global innovation resources.

Focusing on major application scenarios such as service-based manufacturing, construction of international industrial parks, and open data sharing, the industry continues to explore opportunities for expanding opening-up in the Internet information service field. As of today, a number of countrywide first or major influence projects, including the International Hydrogen Energy Center, Schneider Intelligent Manufacturing Innovation Center, and Siemens Internet of Things Empowerment Center, have been introduced.

With the accelerating pace of opening up China’s financial industry, Beijing has become an important place undertaking the task of opening-up of finance in China. As the only comprehensive pilot city for expanding and opening up the service industry in China, Beijing has implemented a series of measures for opening-up and reform measures in the financial sector, attracting a number of representative and influential projects. SWIFT established its legal person institution in China in Beijing; The three major credit rating agencies, Standard & Poor's, Moody's and Fitch Ratings, and two major bank card clearing institutions, Master and VISA, have established their Chinese branches in Beijing; Paypal, the pioneer of the global third-party payment business model, has set up a third-party payment institution in Beijing; UBS, Goldman Sachs and Credit Suisse have respectively increased the shareholding ratio in their joint venture securities companies in Beijing and become foreign securities traders owning controlling stakes; Goldman Sachs, Crédit Agricole CIB, Bain Capital, Oaktree Capital Management, UK’s Prudential Group, etc. have set up asset management companies in Beijing. In April 2020, China’s first "great asset management" industry association was established in Beijing, with more than 60 members, including financial management subsidiaries of major banks and international asset management institutions, with an aim to build itself into an international industry organization for asset management.

Beijing’s financial industry has the following characteristics: first, Beijing is the financial administration center of China. As China’s financial administration center, Beijing is the seat of national financial decision-making and administration departments and large financial institutions such as the Financial Stability and Development Committee under the State Council, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as the place where numerous national financial infrastructures are located at such as payment, transaction, settlement, clearing, registration and credit information. Second, the systemically important financial institutions are clustering in Beijing. The three national policy banks, i.e. China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China, China’s largest state-owned commercial banks such as the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and China Construction Bank, large international insurance groups, including China Life, People’s Insurance Company of China and China Reinsurance, and large international securities companies such as China International Capital Corporation, China Galaxy Securities and China Securities have all conglomerated in Beijing. In 2019, 18 Chinese financial institutions made to top 100 of the world’s largest 1,000 banks selected by The Banker, among which 10 are headquartered in Beijing. Third, major international financial organizations are located in Beijing. The World Bank, the International Monetary Fund and the World Trade Organization have set up their representative offices in Beijing, and the world's large financial institutions have also established their business branches or representative offices in Beijing. In recent years, a number of international financial cooperation organizations such as the Asian Infrastructure Investment Bank, the Silk Road Fund and the Asian Financial Cooperation Association have been established in Beijing. Fourth, Beijing boasts a relatively matured and well-developed financial market system. Beijing is home to the third national exchange for securities following Shanghai and Shenzhen – the National Equities Exchange and Quotations (NEEQ). Beijing is the largest bond issuance and pricing center in China. By the end of 2019, the number of bonds issued in Beijing accounted for 12.46% of the national total, and the balance of bonds accounted for nearly one-third, i.e. 31.14% of the total balance of the country. Fifth, there are a large number of large-sized listed companies in the city. As of the end of 2019, there were 346 domestically listed companies in Beijing with a total share capital of 2.70 trillion shares, accounting for 38.73% of the total share capital of A-share listed companies in China, ranking the first in the country. The total market value of such listed companies reached 17.07 trillion yuan, accounting for 26.67% of the national total, ranking the first in the country. Sixth, Beijing is a city bringing together numerous financial talents. The China Banking Association, the Insurance Association of China, the Asset Management Association of China, the China Futures Association, the China Trustee Association, the Chinese Institute of Certified Public Accountants, the China Association of Actuaries and other national industry and practice associations are registered in Beijing. According to the fourth national economic census, as of the end of 2018, there were around 810,000 financial practitioners in Beijing.

The ladder model of training is supported by an organically connected structure. The Capital’s education runs through the strategic positioning of the city and is a must-have important force to improve the level of “Four Services”. It is marching toward the objectives of quality preschool education, quality and balanced compulsory education, quality and diversified high school education, vocational education to support urban development, and higher education to improve international competitiveness. At present, there are more than 3,500 schools of various levels and types in Beijing, with a total of 3.272 million teachers and students, including 2.884 million students. There are over 1,700 kindergartens with 468,000 children, over 900 primary schools with 949,000 students, over 650 middle/high schools with 309,000 middle school students and 153,000 high school students, over 110 secondary vocational schools with 77,000 students, and over 90 colleges and universities with 586,000 undergraduates and 342,000 postgraduates.

The "Double First-Class" Initiative has achieved remarkable results at universities. The city actively promotes the university classification reform and characteristic development, and reinforces connotative development. 34 universities and 164 disciplines are included in the national "Double First-Class" construction list, 194 disciplines are rated A-category in the discipline assessment of the Ministry of Education (accounting for 27% of the country’s total), and the number of receiving the three major national science and technology awards accounted for more than 20% of the total number of all universities in the country. The city has established 22 high-end innovation centers and 99 high-end disciplines, and its discipline building and innovation capabilities rank first in the country. Vocational education focuses on accelerating the transformation and upgrading of industrial structure. 7 vocational colleges are included in the national program for characteristic vocational education, and 12 characteristic high-level vocational colleges, and 40 engineering colleges and master studios are picked to implement the continuous training of personnel with advanced technical skills. Beijing Institute of Economics and Management has taken the initiative to set up the Beijing Digital Economy Vocational Education Group, which joins hands with Siemens, Tencent and other leading companies in digital economy, to closely adapt with the development of the digital economy industry chain and enhance its educational competence.

An opening-up pattern in education has taken an initial shape. Beijing actively promotes win-win cooperation and creates a new pattern of opening up in education. The Three-Year Action Plan for Opening up and Reform in Education and the Three-year Action Plan for Developing International Schools (2019 - 2021) are announced. A batch of international schools are newly built in the “Three Cities and One District” (Zhongguancun Science City, Huairou Science City, Future Science City, and Beijing Economic-Technological Development Area) and other key areas, to accept foreign students in middle schools, primary schools and kindergartens. There are 15 schools in operation for children of foreign nationals, among which the Tsinghua International School has piloted a foreign-related education program, which marks the first attempt in the country to facilitate education to children of foreign nationals relying on a public school, and has created a good foreign-related education environment and business environment. The city broadly participates in global education governance, shares successful experience of Beijing's education reform and development, further deepens the “Belt and Road” education exchange and cooperation, strengthens cultural exchange in the field of education between China and the rest of the world, and fosters and gathers international talents. In addition, the city builds characteristic international schools, optimizes service supply of foreign-related public education, and improves the level of Chinese-foreign cooperation in running schools. By establishing the “Study in Beijing” brand and steadily expanding the scale of students from overseas, Beijing is intended to become a major study-aboard center in the world and a destination for outstanding students around the world, providing significant support for the initial establishment of a world-class harmonious and livable city.

Cultural market entities grew rapidly. As of 2019, there were 827 cultural and artistic performance groups, 1,871 performance brokerage agencies, 170 performance venue operators, and 2,075 entertainment venues and Internet access service providers in the city. There were 400 star-rated hotels, 1,386 budget hotels, 4,786 social inns, 3,016 travel agencies, 34,500 licensed tour guides, 8,499 outbound tour leaders, 238 tourist attractions of different ratings, 274 star-rated folk-custom villages, 6,042 star-rated folk-custom households and 547 specialty businesses in the city. Nine villages enlisted the key spots of nation-wide rural tourism, and the number of employees in tourism industry maintained above 1 million.

The competitiveness of advantageous sectors continued to increase. In 2019, the gross output value of Beijing’s animation and game sector reached RMB 80.6 billion, an approximate year-on-year increase of 14%, and the export value of Beijing’s animation and game companies reached RMB 35.252 billion, an approximate year-on-year increase of 93%. In 2019, there were a total of 22,823 performances in Beijing, which attracted 10.4 million audiences and generated box office revenue of RMB 1.744 billion.

The tourism industry innovation system continued to improve. In 2012, Beijing Tourism Development Fund was set up, which had driven a social investment amounting to about RMB 15 billion by the end of 2018. In 2013, the Beijing Tourism Resources Trading Platform was launched, which was the first of its kind in the country and later expanded into the Beijing-Tianjin-Hebei Tourism Investment and Financing Service Platform. By the end of 2018, the platform had released more than 520 projects, involving more than RMB 180 billion.

In 2014, Beijing Suburb Tourism Financing Guarantee Platform was established, which was the first tourism guarantee platform in the country; the country's first policy-supported insurance for rural tourism was launched. By the end of 2018, Beijing Suburb Tourism Financing Guarantee had cumulatively handled 796 tourism guarantee projects, involving an amount of RMB 1.699 billion. The policy-supported insurance for Beijing suburb tourism had cumulatively covered a total of 4,455 homestay tourism operators, with the amount of risk guarantee reaching RMB 3.014 billion.

In 2019, 12 measures to promote culture and tourism consumption were developed.The heritage and culture experience trip along the southern section of the central axial was created. 18 tourism routes in the theme of “Qingming Spring Outing and Red Trip” were launched, and 543 newly certified Beijing Gifts products were introduced. The tourism industry developed in diversified formats. Red tourism had distinctive features, the senior citizen tourism was on the rise, and Beijing suburb tourism developed in a specialized way. The brand influence of “Beijing Gifts” continued to improve, and Yanqing District, Pinggu District and Huairou District have been successfully recognized as national-level demonstration zones of all-for-one tourism.

Lowered access threshold. The newly revised Law on the Protection of the Rights and Interests of the Elderly is implemented, the permission for setting up elderly care services is completely abolished, and an elderly care institution registration system is enforced. Market operation entities engaged in elderly care services that apply for industrial and commercial registration and carry out chain operation in accordance with relevant regulations may complete registrations collectively via a “green channel” in the same district-level administrative area. Those registered as social service agencies at civil affairs authorities, according to relevant regulations, may set up multiple service outlets that do not have legal personalities within the jurisdiction of the authority where they are registered. Access threshold for foreign investment is lowered, and it is clearly defined that foreign investors and domestic investors are treated equally.

Deepened reform of government-sponsored elderly care services. The reform of transferring government-built (sponsored) services to private operation is being comprehensively advanced. With newly-built elderly care services handed over to social forces, the decisive role of market mechanism is played while the bottom-line assurance function of government-sponsored elderly care services is fully leveraged, and the elderly care service is pushed to a development path of socialization and industrialization. By the end of 2019, nearly 140 among the city's 218 government-sponsored elderly care services have been handed over to private operation, accounting for more than 60%.

Enhanced operational support. The Implementation Opinions on Financial Support for the Development of the Elderly Care Service Industry and the Implementation Opinions on Accelerating Commercial Pension Insurance are released jointly with the Municipal Financial Regulatory Bureau, to effectively address the financing difficulties and high cost faced by elderly service institutions. Administrative measures for funding the construction and operation of street (township) elderly care centers are formulated, and a maximum of RMB 4.5 million is provided as subsidy to care centers run by social capital. Administrative measures for subsidizing the operation of elderly care services are announced to enable differentiated subsidies to elderly care services, with a monthly subsidy going up to RMB 1,050 per bed. Measures for supporting the operation of nursing stations are established, which, on the basis of a RMB 300,000 one-time construction subsidy on average, further provide a service flow subsidy at a rate not less than 50% of the service charge, as well as a care and nursing flow subsidy, and a chain brand subsidy. The policy on general liability insurance subsidy to elderly care services is comprehensively implemented, according to which, 80% of the premium is covered by the municipal government, and 20% is covered by the respective institutions.

Increased support for land and facilities. In 2016, the measures for handing over auxiliary elderly service facilities in newly built communities were released, according to which, the property right of auxiliary elderly service facilities should be handed over to the civil affairs authorities for free. By 2019, the civil affairs authorities of all districts have taken over more than 80 elderly care facilities. Positive and negative lists on the nature of planned use of construction projects are released, and elderly care facilities are included in the positive list. It is stipulated that idle facilities across the city after functional dispersing and vacating will be prioritized for the construction of elderly care facilities.

Innovative exploration of a centralized home-based nursing service model. The Opinions on Effectively Operating and Managing Elderly Care Service Facilities of Shared Property is released, centralized home-based elderly care communities are built in pilot areas.The diversified needs on the demand side are addressed through socialized and industrialized caring service for the elderly, and structural reform on the supply side of elderly care service is carried out accurately.

Asset Appraisal Industry. Beijing asset appraisal industry was born and flourished because of the reform and opening up, and continued to grow and develop in the course of reform and opening up. As of the end of 2019, there were 297 asset appraisal institutions affiliated with Beijing, 4,308 practicing asset appraisers, and the size of the asset appraisal industry in Beijing ranks top in the country. In 2018, the asset appraisal industry in Beijing achieved business revenue of RMB 3.722 billion, accounting for 20% of the industry’s total national revenue, and there were 7 mega appraisal agencies with business revenues of more than RMB 100 million. In the 2019 ranking of national asset appraisal agencies, 36 agencies of Beijing entered the top 100 in the country. As of the end of 2019, there were 69 national securities evaluation agencies and 35 were in Beijing, accounting for 50.72%.

Certification Service Industry. Since the implementation of the "Regulations on Certification and Accreditation of the People's Republic of China", a certification system covering various types of certification and accreditation covering products, services and management systems has been formed in the Beijing area. As of the end of May 2020, there were 250 certification agencies in Beijing, accounting for 38.5% of the national total, 10 foreign-funded certification institutions in Beijing, accounting for 15.8% of the national total, 28 organic product certification organizations in Beijing, accounting for 33.7% of the national total. There were 96,603 certifications in the Beijing area, and 36,278 certification organizations were involved. The conduction and feedback of certification and accreditation guides consumption and procurement, forms an effective market selection mechanism, encourages producers to improve their management level and product and service quality, and increase effective market supply. The social recognition of certification is increasing day by day, and the authority and influence of high-end certifications such as green and organic agricultural product certification are expanding.

Construction Engineering Design Service Industry. Adhering to the development concept of "innovation, coordination, green, openness and sharing", Beijing has provided a broad development space for the engineering survey and design industry. At present, there are more than 1,700 engineering design units in Beijing and more than 120,000 design employees. In recent years, the design business revenue has exceeded RMB 70 billion. Beijing is home to nearly 13% of the country's Grade A engineering survey and design enterprises, including one academician from both Chinese Academy of Science and Chinese Academy of Engineering, two academicians from the Chinese Academy of Engineering, 124 national survey and design masters, and more than 21,000 registered architects and survey and design engineers. Beijing construction engineering design service industry is well-deserved industry leader in terms of number and size of companies and high-quality talent team. To meet the requirements of high quality development, the engineering survey and design industry has fostered a number of architects with international vision and cultural self-confidence, while preserving the urban fabric of the old city and taking into account the needs of modern urban development. The technical service capacity of the design industry has been significantly improved, the technical innovation methods of the design industry have become more diversified, and scientific and technological innovation has been more closely integrated with engineering projects. At the same time, the pace of enterprise transformation and upgrading has accelerated, and some industry units have expanded from traditional design to full-process consulting and general contracting. The international strategies of the coordinated development of Beijing-Tianjin-Hebei region and the Millennium Plan to build Xiong’an and the Belt and Road Initiative provide a long-term future-oriented and internationally-oriented development space for the Beijing survey and design industry, as well as a border stage for the world's architect team to display their talents.

Advertising Industry. Relying on the advantages of Beijing, the center of the national politics, culture, international exchanges, and technological innovation, Beijing's advertising industry has developed rapidly in recent years and is in a leading position in the country. In 2019, the city's advertising business volume reached 256.5 billion yuan, with 40,174 advertising business units and 137,729 advertising employees. With abundant media resources, Beijing is the largest concentration of media agencies in China, with a strong cluster of media agencies making it the most influential advertising platform in China. There are also a large number of financial institutions, well-known international and domestic enterprises, and leading technology innovation companies, supporting Beijing's most important advertising market. Beijing has an unparalleled advantage in advertising talents, with a high concentration of media, demand, capital and talent, which promotes the rapid development of advertising companies in Beijing. Beijing has formed a relatively complete advertising industry chain from upstream market research and brand planning, to core advertising planning, media planning, and creative design, to downstream media placement and execution, terminal promotional execution, advertising production, and exhibition communication execution.

Legal Services. As of June 2020, there are 35,464 legal practitioners in Beijing, including 31,765 full-time lawyers (520 attorneys accredited), 951 part-time lawyers, 1,414 public lawyers, and 683 corporate lawyers. There are 2,781 law firms, including 1,640 general partnership law firms, 33 special general partnership law firms, 993 individual law firms, and 115 branch law firms of other provinces accredited in Beijing. In 2019, lawyers handled 218,876 litigation cases, 184,534 non-litigation legal affairs cases and 22,920 legal aid cases in Beijing; 43,436 law firms served as legal advisers. In 2019, lawyers in Beijing earned 27.373 billion yuan and paid 3.470 billion yuan in taxes. Focusing on reform and development, promoting the promulgation of Implementation Opinions on Deepening the Reform of Lawyer System and Implementation Plans for the Work of Public Lawyers and Corporate Lawyers in Beijing, revising Implementation Rules for the Administration of Law Firms and Implementation Rules for the Administrative measures for the practice of lawyers in Beijing. Actively building a working framework for deepening the reform of the lawyer system with capital characteristics and Beijing characteristics. Focusing on the construction of the "Belt and Road", the collaborative development of Beijing-Tianjin-Hebei, the construction of urban sub-centers, the preparation for the Winter Olympics, and other important work and key tasks to launch earmark legal services; focusing on making a brand, guiding law firms to the trend of scalization, specialization, standardization and internationalization, and initially making the "Beijing Lawyers" brand.

Intellectual Property Service Industry. The intellectual property service industry in Beijing has formed an industry system with complete categories, complete chains, high quality and good prices. By the end of 2019, there were 643 patent agencies in Beijing with 8,580 practicing patent attorneys, accounting for 24.66% and 42.09% of the national total; 5,605 trademark agencies have been filed. Most of the foreign innovation subjects are using the services provided by the Beijing Intellectual Property Service to layout patents in China. Beijing intellectual property service industry can provide all kinds of market subjects with various services covering patents, trademarks, copyrights, geographical indications, integrated circuit layout design, new plant varieties, trade secrets, anti-unfair competition and other sub-divisions of the field, covering intellectual property agency, law, information, training, operation, consulting services and other different types of business services, and the service targets cover enterprises in more than one hundred countries and regions in the world. In 2019, the city set up the "Beijing (Zhongguancun) International Intellectual Property Service Hall" in the Beijing Intellectual Property Building to gather the city's high-quality intellectual property service resources and build a docking platform for the interface between innovative enterprises and professional intellectual property service institutions.

At present, Beijing’s medicine and health sector is developing on a grand scale. In 2019, the aggregated operating revenues from relevant companies exceeded RMB 200 billion, showing a year-on-year increase of 10.6%. There has formed a relatively compact spatial pattern featuring one cluster in the south and another in the north, accounting for 80% of the entire city. The northern cluster is centered on Zhongguancun Life Science Park, while the southern one Yizhuang and Daxing to form high-end manufacturing clusters. Beijing boasts the country’s most abundant innovation resources and takes pride in its strong fundamental research capacity as it has gathered over 70 science research institutions and higher institutes of learning involved in medicine and health-related research, over 80 national key laboratories and engineering technology research centers, and 4 national-level major science & technology infrastructures including National Center for Protein Science. Beijing is also a talent pool with the highest number of high-end professionals in the fields of medicine and health in China, gathering around half of academicians of the Chinese Academy of Sciences and Chinese Academy of Engineering. Beijing’s innovation enterprises are on the rise.

At present, a number of emerging tech-enterprises are successfully established in Beijing including BeiGene and InnoCare. These companies have reached international standards with regard to fields like molecular target drug and immunotherapeutic pharmaceuticals. Moreover, altogether 41 companies have been listed over the years such as Konruns, Hotgen, Balance Medical, Pharmaron Inc. and InnoCare. In addition, there are numerous innovative drug products, making Beijing the largest source of original drugs in China. Altogether, there are close to 100 drugs with revenues totaling hundreds of millions of yuan. Since 2019, three patented drugs have come into market in Beijing, ranking second in China. Medicine and health sector has provided strong support for Beijing’s endeavor to forge a national science & technology innovation center and build a sophisticated economic structure.

In 2019, the equipment industry reached an annual output value of RMB 247.87 billion, a year-on-year increase of 2.6%. Industrial innovation capability is prominent. The industry boasts 1 national manufacturing innovation center, 6 national engineering research centers, and 145 corporate technology centers (accounting for 19.2% of the city's total of corporate technology centers, second only to the software industry and higher than other manufacturing fields). The average R&D investment intensity of equipment enterprises above designated size was 2.5% (the ratio between internal R&D expenditure and main business income, data from year 2017), which was higher than the R&D investment intensity of the city's industries above designated size (1.3%) and that of countrywide equipment enterprises above designated size (1.6%, data of equipment industry in the same statistic dimension). The characteristics of headquarter economy are prominent. Among the world's top 500 equipment manufacturers, 16 (including 4 foreign and 12 domestic enterprises) have set up headquarters or Asia-Pacific headquarters in Beijing. There are 48 affiliates of enterprises under the direct management of the central government, including 27 first-class central enterprises such as China Aerospace Science and Technology Corporation, and China National Machinery Industry Corporation, which are included in the statistics of the city’s equipment industry and the respective annual output value of which has exceeded RMB 100 million. The output value of enterprises under the direct management of the central government accounts for 14.4% of the total output value of the city's equipment industry and 20.0% of the total output value of the intelligent equipment industry. The advantages of specialization, expertise, uniqueness and novelty are prominent. Among the first four batches of single championship demonstration enterprises announced by the Ministry of Industry and Information Technology, 18 of them come from the Beijing area and 11 of them are equipment manufacturers. Beijing Jingdiao Group is a leading manufacturer of high-speed engraving and milling machines in the country; Nuctech Company Limited is a leading security solution provider; and Goldwind Technology is a leading manufacturer of wind turbine assembly in China.

Abundant industrial innovation resources. There are more than 50 energy conservation and environmental protection research institutions directly attached to state ministries and commissions, and more than 60 municipal energy conservation and environmental protection key laboratories and engineering technology research centers. Beijing leads the country in terms of the number of national key laboratories for energy conservation and environmental protection, state-registered energy conservation service companies, companies with class-A environmental engineering design qualification, companies with first-level qualification for contracting environmental engineering projects, companies with class-A qualification for environmental assessment, and companies with qualifications for operating environmental pollution control facilities.

Prominent advantages of headquarter enterprises . The city has gathered a batch of headquarter enterprises that invest and develop countrywide, which include China Energy Conservation and Environmental Protection Group, Sinochem Environment, China ENFI and other large-scale enterprises and branches under the direct management of the central government, as well as municipal state-owned enterprises such as BEWG, Beijing Capital Co., Ltd. and Beijing Drainage Group, capable of providing industrial enterprises and parks with integrated energy conservation and environmental protection service solutions and undertaking specific project constructions. Meanwhile, relying on the city's abundant capital, technical resources and headquarter resources of large enterprises , an energy conservation and environmental protection service model integrating technology research and development, investment and construction, and comprehensive operation services is established. New business models and forms of energy conservation and environmental protection, such as energy conservation diagnosis, third-party environmental pollution control and comprehensive environmental protection service, have emerged.The business scope of these enterprises radiates to the whole country as well as abroad.

Fast development of independent innovative enterprises. In recent years, through entrepreneurial incubation, joint venture and cooperation, and the professional divestiture of energy conservation and environmental protection business of large enterprises, the city has boosted the growth of a batch of energy conservation and environmental protection enterprises, and the number of listed companies has ranked top in the country. A batch of independent innovative enterprises with core technological advantages, such as OriginWater, Sound Group, BGE, TUS-EST, Beijing SDL Technology, Greentec Environment Protection, and Poten Enviro, have emerged and are playing leading roles in their respective segments.

As the next step, Beijing's energy conservation and environmental protection will focus on improving industrial technology level and equipment manufacturing capability, encouraging enterprises to speed up technology research and development, high-end equipment manufacturing and demonstration application. The city will further enhance its comprehensive service capability for energy conservation and environmental protection , and drive the fast and healthy development of the industry and rational layout of the industrial chain, striving to build itself into a “source” of technological innovation for the national energy conservation and environmental protection industry, a “leader” in high-end equipment manufacturing, a “gathering spot” of service resources, and a “demonstration area” for market application.

The pure electric vehicle has entered commercialization phase and there is a rather complete set of industrial chains, covering a number of aspects including finished vehicles, key components, charging infrastructure and platform service. Beijing is devoted to pushing forward innovation-driven development, to realize synergistic development of pure electric vehicles and the “Three System” of ECU (Electrical Control Unit), BCU (Battery Control Unit) and VCU (Vehicle Control Unit). Fuel cell vehicles (FCVs) project is at market introduction phase, and its finished vehicle technology continues to be optimized. Its independent research capacity has also been improved for fuel cell electrical reactor. To address vehicle demand during Beijing 2020 Olympic and Paralympic Winter Games, Beijing is committed to building its hydrogen energy system and setting a good example for the usage of fuel cell vehicles. Beijing is building a new ecosystem for network innovation and is the first one to set up the series policy system. As a result, Beijing is a leader in the autonomous driving road test in China. Altogether, Beijing has opened 151 test roads spanning 504 kilometers each and issued 285 test licenses for 77 vehicles from 13 companies, with a road test aggregated distance of over 1.22 million kilometers. Moreover, the Beijing Economic-Technological Development Area has made its 40-square-kilometer area open for autonomous vehicle usage for the Olympic Winter Games.

R&D platforms should play a supportive role in Beijing’s industrial development. Beijing government is committed to integrating resources from different industries, promoting synergistic innovation, as well as building an industry public service platform and a top talent grooming and exchange platform, in order to incubate companies, pool resources and facilitate industry development. The National New Energy Vehicle Technology Innovation Center has started to work on independent and safety control of key chips, vehicle-standard semiconductor in-vehicle validation and open-source platform. The National Intelligent and Connected Vehicle Industry Innovation Center is working with competitive resources to focus on joint development of operating system, high-precision mapping and information security as well as establishing a test and validation platform for key auto-parts. Moreover, the National Battery Innovation Center has accelerated its R&D on new types of lithium-ion battery and has built a validation and testing center for power battery.

Industry clustering has preliminarily taken effect as Haidian District has become a major ground for intelligent and connected vehicle innovation industry. Moreover, Shunyi District and Beijing Economic-Technological Development Area have become clusters for the commercialization and development of new energy vehicle research achievements as there are a number of typical sterling institutions including many national-level innovation centers, field leading players and unicorn enterprises. As a result, the level of industry clustering here has been further improved. Beijing continues to push forward major industry projects as witnessed by a number of projects including BAIC New Energy High-end Intelligent Factory project, Beijing Benz Automobile New Energy Vehicle project and FOTON Hydrogen-powered Bus Final Assembly Base project. By carrying out these projects, Beijing is able to enhance its finished vehicles traction capability, facilitate vertical integration of automobile industry, coordinate synergistic development of whole industry chain and promote clustering development competence.

Those districts are trying to improve their performance and set the right focus. For instance, Shunyi District has attracted around 100 pertinent companies to enhance the development of the third generation semiconductor industry. Currently, a whole industry chain is starting to take shape with chip business at its core and integration of design, substrate, epitaxy, chip, components, modules, encapsulation, inspection, equipment and application as complement. In addition, Fangshan District has been focusing on a number of key industries including new display, integrated circuit and graphene materials, expanding industrial layout and promoting industrial quality and transition for the new material sector.

AI companies in Beijing enjoy a salient edge over others as there is an ongoing momentum here. At present, there are over 1,000 companies in AI field, mainly in Haidian and Chaoyang districts. Large tech companies like Baidu, JD.com and MI are actively exploring AI field as AI technology has become a driving force for business growth. At the same time, companies like Baidu, MI, JD.com and ByteDance have already made operating revenues of over hundreds of billions of yuan, and companies like Meituan-Dianping, Qihu and TAL have reaped revenues of tens of billions of yuan. Moreover, the revenues of these companies are still going up.

Beijing-based AI companies with fast development enjoy growing international influence. As showed in the list of the global AI unicorns of CB Insights in 2019, there were 12 Chinese companies out of 46 in total globally. More specifically, 8 of the 12 Chinese companies were located in Beijing. Moreover, in the AI 100 2020 announced by CB Insights, 6 Chinese companies entered the list and half of them were in Beijing.

Double improvement in quality and profit was achieved. Average revenue of enterprises above designated size wasRMB 380 million, a year-on-year increase of 13.9%; revenue per capita was RMB 1.498 million, a year-on-year increase of 19.0%. Industry innovation remained active. In 2019, the number of software copyright registrations in Beijing exceeded 200,000, a year-on-year increase of 24.2%, accounting for 13.7% of the national total; R&D expenses of large- and medium-sized enterprises totaled RMB 115.37 billion, a year-on-year increase of 19.7%. Backbone enterprises continued to release development vitality. In the list of the Top 100 Software Companies by Sales Revenue released by the Ministry of Industry and Information Technology, the Top 100 Internet Companies in China, and other lists, the number of enlisted companies in Beijing ranked first in the country.

An Industrial Internet ecosystem is taking shape at a faster pace.The National Top-Level Identifier Resolution Node of Industrial Internet (Beijing) was put into operation, with the number of secondary industrial nodes connected and identifier registrations ranking first in the country. Innovation Center for Industrial Big Data, the Innovation Center for Software-Based Industrial Technology (Beijing) and the National Innovation Institute of Digital Design and Manufacturing, Beijing Center were completed, and the China Academy of Industrial Internet settled in Beijing. A phased breakthrough has been made in the construction of the National Network Security Industrial Park. The National Network Security Industrial Park was officially inaugurated; the construction of the main building in the core area of the Haidian Park commenced, and an opening ceremony was held; the 2019 China Cyber Security Industry Summit Forum was successfully held; the National Information Technology Application and Innovation Base was established in the Information Innovation Park in Beijing Economic and Technology Development Zone. Innovation in artificial intelligence(AI) is accelerating. The 2019 Beijing Artificial Intelligence Industry Development White Paper was complied. The AI-related enterprises in Beijing continued to lead the industry nationwide with their advantages in both quantity and quality.

In 2019, there were over 4,000 service companies above designated size in Beijing, bringing in revenues of over RMB 1 trillion. In terms of district distribution, these tech service providers are mainly in districts like Haidian, Dongcheng, Chaoyang and Xicheng. Beijing’s tech trade business was booming as it ranked first nationwide in terms of transaction volume for registered technology contracts, gaining over RMB 560 billion.

Beijing is one of the regions with the world’s most abundant innovation resources. As showed in Global Innovation Index 2019 released by WIPO (World Intellectual Property Organization), Beijing is among the top five science and technology clusters (ranked 4th). Moreover, Beijing boasts numerous higher institutions of learning and various central and local science & research institutes, thus gaining a competitive edge in innovation-driven fields such as intellectual technology and talents.