Shenzhen is well known for its innovative landscape, however, how and why are Shenzhen companies so good at innovating? Mainly because Shenzhen companies are superior at innovating due to the specialist engineers and manufacturing facilities implemented allowing for the creation of new ideas and constructs.
Due to the complexity of the ecosystem in Shenzhen, Shenzhen companies are notorious for developing their innovative solutions at an accelerated pace. We see a huge advantage as compared to other locations such as San Francisco and Tokyo, because of the vast amount of resources set forth in the Greater Bay Area. Shenzhen companies can easily adapt, pivot, or completely change their solutions within a fast amount of time, leaving regions across the globe scraping to catch up.
Shenzhen companies lean heavily on the neighboring cities to combine one another’s resources. There are eleven cities within the Greater Bay Area that each has unique and distinctive features, with the overall aim to boost the economy, through technological growth and innovation, as well as, increasing infrastructure and financial fluidity within the cities.
Within these the GBA, there are four main cities; Hong Kong, Macao, Guangzhou, and Shenzhen, which are vital for the overall development within the region. Guangzhou is referred to as the political center as Shenzhen is known for its innovation. Hong Kong is vital due to it being the financial hub and one of the major ports within China is located there, as well as Macao. Thus playing a key role in the transportation of goods. The remaining seven cities consist of Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, Zhaoqing. Ranging specialties from Foshan’s elite transportation network to Dongguan the ‘world’s factory’ due to its incredible manufacturing capabilities. Overall all tying together to create a super economy.
Considering the vast amount of resources available within the Greater Bay Area, it is no wonder how Shenzhen companies are able to move at a break-neck pace in comparison to their competition in other parts of the world. The Greater Bay Area is not only home to high-quality infrastructure and machinery, but also a huge engineering talent pool of industry experts from all over the world.
A startup founder can easily unlock many talents throughout their product development process, especially because building hardware has numerous complex problems which can easily occur during this process, the Greater Bay Area easily contributes a pool of knowledge to help these startup founders overcome and solve these challenges.
There are several R&D and manufacturing facilities available within the Greater Bay Area, which aid Shenzhen companies operating within the region. Due to the Greater Bay Area having some of the most innovative tech firms in the world, they are able to lean on each other’s R&D facilities. ZTE is a prime example of research and development facilities located in Shenzhen. With six years of experience in technological development and specialized patent technologies, they massively assist in the development of innovation within the microelectronics industry.
Manufacturing within the Greater Bay Area is immense, ranging from the automotive industry to life sciences. There are numerous high-tech manufacturing companies such as; Sinomach which are building a $28.6 billion smart industrial estate dedicated to manufacturing, to further develop the resources available to companies operating. Overall growing the vast manufacturing industry further.
For one, we see many companies flocking to the Greater Bay Area as a stepping stone, or a pilot-testing platform, before entering the Chinese market. We see many Shenzhen companies constantly utilizing the special economic power which Shenzhen offers to allow foreign companies to set up, develop, and deploy their innovative solutions across China.
There is no simple solution to building a company in Shenzhen, but, there are many resources and companies willing to assist your company throughout the infancy stages of your development process. For one, platforms such as SVV have created the perfect platform designed to help companies get through the nasty difficult development stages which usually leave companies hindering, or worse yet, failing before they’ve even taken off.
As a Shenzhen company ourselves, we have seen many projects flop and succeed, but never has a company been stranded for expertise, assistance, or guidance along its journey. For Shenzhen companies, it’s usually difficult for them to find the right market fit, which, according to CB Insights, is the case for over 42% of startup companies.
Overall, companies that operate within Shenzhen have a competitive advantage due to the location facilitating the operation of the business. Due to the high numbers of resources easily available within the Greater Bay Area to lean on. Thus overall, making companies more competitive within today’s dynamic markets.
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