At the end of 2017, a forum about how to promote mass entrepreneurship and innovation in the equipment manufacturing industry was staged in Shanghai Electric Pudong Training Base. Focusing on technological innovation and incubation, the forum, which included such activities as sharing sessions, seminars, exhibitions, and roadshows, has witnessed the exchanges of innovative ideas on technical expertise and industry development in multiple perspectives and dimensions, and explored a distinctive development path that integrates technological innovation into industry policies and capital investment. It has built a platform for Shanghai Electric to better commercialize its innovation results, and for people from different industries to get updates on expertise and share resources.

The 5-day event touched upon such 8 fields as energy storage, distributed energy, AI, and capital innovation, and invited 66 experts and scholars at home and abroad in technology, market, policy-making, and capital as keynote speakers. More than 1,200 people from the government sector, the institutions of higher learning, businesses and the investment world, as well as 350 companies took part in the discussion. At the main forum, the invited honorable guests talked about how equipment manufacturing companies would realize innovation transformation in the new era.

Chairman and Secretary of the Party Committee at Shanghai Electric

Zheng Jianhua: Technological Advances and Innovation are the Soul of Shanghai Electric

Abstract: Shanghai Electric must promote industry growth with continuous efforts in environmental protection and energy conservation, connected intelligence, technology integration, and total solutions. The Report at the 19th CPC National Congress suggests that China needs to foster a number of world-class advanced manufacturing clusters. As a responsible enterprise, Shanghai Electric must make its contribution toward the Chinese Dream.

This past year has seen our continuous advances in technological innovation. The Central Academe, in particular, has made great efforts in technological development, industry incubation, and technological progress. I believe that Shanghai Electric will enjoy a promising future with all our young, motivated, and outstanding members. I would like to take this opportunity to talk about my personal thoughts:

It is a top priority for Shanghai Electric to achieve technological advances through innovation. A standard-setter in China's equipment manufacturing industry, Shanghai Electric has worked many wonders and contributed a lot to the country's rapid development. Our technological advances are attributed to technology accumulation and continuous input. It is our technical strength that helps Shanghai Electric grow rapidly and secures the industry leadership. A strong technical capacity is key for Shanghai Electric to growing into a globally competitive enterprise. Otherwise, Shanghai Electric has little odds to deliver quality products and become a century-old brand.

We must stay ahead technologically to grow bigger and stronger and keep up with global counterparts. Over the past years, Shanghai Electric has put a new premium on technological innovation and adopted many positive measures. All these efforts paid off well. We have world leading power generation equipment, in particular, thermal power generation equipment. We also have world-class 1,000MW ultra-supercritical unit with double-reheat cycle in terms of technical parameters. In a word, Shanghai Electric boasts strong technical capabilities. But we must recognize that there is still a far cry from those genuinely powerful companies and international archrivals as only a small proportion of the annual R&D spending of 3-4 billion yuan is invested directly to R&&D activities. We have paid more attention than ever to technical research, input, and development. We are keenly aware that a respectable international company must stay ahead technologically, and we still have a long way to go. Next we will focus on demand-driven technological development.

To secure technological advances, we need to increase R&&D spending and identify the path of technological development. What direction should we follow in technological development? First, we should keep up with national strategies. Second, guided by the "Made in China 2025" initiative, we should not derail but prioritize high-end and advanced equipment manufacturing in future development. Third, our technologies should meet the requirements for green development, energy conservation, environmental protection, connected intelligence, technology integration, and total solutions. We should focus not on one single product, but instead on the direction of equipment manufacturing.

We must promote conditions favoring the obtainment of technologies. Shanghai Electric needs to explore diverse technological trajectories. As we come to a new stage in the new era, we must abandon the traditional pattern of closed R&D that relies on one single item for technical development; otherwise, we'll be left in the dust. As a 100 billion yuan business, Shanghai Electric should be more open and forward-looking and follow different development paths. If we stick to the narrow-minded independent technological development, we cannot grow quickly. In this light, we must work with multinational companies, world-class enterprises, and first-class institutes to obtain new technologies. We should work with research institutes not only at home but also abroad.

The merger and acquisition of world-class teams and companies represent an important way for technological development. I think that Shanghai Electric Central Academe has the ability to acquire these excellent companies and teams. We must open arms to embrace the best teams in the industry. With the most open and promising team, the Central Academe stays in the forefront of corporate development. Therefore, all companies within the group must free your minds, change your ideas, and eliminate all obstacles getting in the way.

We need to increase investment in venture capital. We must have an eye for emerging technologies and ideas so that we can catch up with the most advanced world levels. This year, Shanghai Electric will make some big moves in venture investment, including seeking partnerships in such forefronts as Israel and Silicon Valley. We want to find the most cutting-edge technologies in the world. All promising technologies that will translate into commercial results are desirable. All in all, we must keep an open mind in the obtainment of technologies.

The key to technological development is a favorable environment for all technical personnel. We will deepen the reform of internal systems and mechanisms, increase direct investment to rewarding R&D projects, and create a better work environment and incentives for technical personnel. Changes should be made to our mechanisms. Shanghai Electric has tried out stock ownership by key personnel to motivate all. At the same time, we're stepping up efforts to build talent apartments. About 5000–6000 units are to be built in Songjiang, Jing'an, Minhang, Jiading, and Yangpu districts for our young employees to live in. Our key technical experts can feel material and spiritual satisfaction together.

Deputy Director, Shanghai Municipal Commission of Economy and Informatization

Huang Ou: To create new advantages in the real economy through intelligent transformation

Abstract: I hope that Shanghai Electric will seize the historic opportunities to develop as a high-end global-influential equipment manufacturing industrial group.

Faced with limited land resources and soaring labor cost, Shanghai is starting intelligent manufacturing transformation. Under the principle of "demonstration, application, integration, and manufacturing", Shanghai will carry out the "Ten, Hundred, Thousand" Project for intelligent manufacturing applications and improve the supply system. For this purpose, Shanghai needs to pay special attention to the following three aspects: intelligent manufacturing of high-end equipment, innovation of patterns and mechanisms, and industry ecosystems and policies. Shanghai needs to promote intelligent manufacturing to grow competitive industries; carry out projects to strengthen industrial development at the grass-root level and the areas of weakness in the industrial chain. Besides, Shanghai must encourage enterprises of different ownerships to give play to their respective strengths so that a world-class manufacturing cluster is possible. I hope that Shanghai Electric will seize the historic opportunities to develop as a high-end global-influential equipment manufacturing industrial group.

General Manager and Secretary of Party Committee, Shanghai STVC Group

Shen Guowei: A country's overall strength is reflected in its equipment manufacturing capability

Abstract: Creating a new pattern of equipment manufacturing in Shanghai driven by innovation and industry-finance integration

Equipment manufacturing industry is a strategic industry that provides key technical equipment for all sectors of the national economy and is a concentrated expression of the level of science and technology, manufacturing capability and overall strength of a country or region.

The fast economic growth in the past years has contributed to rapid expansion of China's equipment manufacturing industry. Yet we need to recognize that most domestic manufacturers rely their growth on massive low-cost labor force and major infusions of funds. The weak independent innovation capability, in particular, the absence of key technologies, has become bottlenecks that restrict the development of equipment manufacturing in China.

Currently, high-end equipment has become the priority layout of Shanghai Science and Technology Innovation Center. We must seize the opportunity of building a global science and technology innovation center, and vigorously attract high-end resources such as human resource, science and technology, information, capital and platforms, then speed up the pace of independent innovation of high-end equipment as well as the breakthrough of core components, then promote Shanghai's influence and competitiveness in technological innovation and industrial transformation in the world.

Industry-finance combination is an effective measure to promote transformation in the equipment manufacturing industry

By leveraging innovative financial instruments, we can channel more funds into the industry and facilitate the integration of technologies and mechanisms, thereby sustaining the development of the real economy. Industry-finance combination has become a new driver behind economic transformation and development.

After years of practice, it is proven in the West that industry-finance combination will help equipment manufacturing upgrade. Through the integration of industry and finance, GE has outdone its competitors in cost control and value-added services, and as a result secured solid market leadership.

What I find the most important through the case study of GE is that a first-class enterprise is made possible by innovation, first-rate talents, and effective industry-finance combination.

Partnerships help Shanghai Electric move forward in equipment manufacturing upgrade

Shanghai Electric and Shanghai STVC Group have a solid record of partnerships, including joint investment in Shanghai Micro Electronics Equipment (Group) Co., Ltd., Shanghai Radk-Tech Hydraulic Controls Co., Ltd., and roadoor.com. Next we can work together in resource sharing, industry distribution, and business connection to promote strategic emerging industries in Shanghai. We will make our contribution as Shanghai works faster to build a globally influential center for scientific and technological innovation.

Director, Shanghai Electric Central Academe

Zhang Mingjie: Foster potentially burgeoning businesses

Abstract: We are in an era of changes. In order to cope with the current situation, Shanghai Electric Central Academe strives to build a business incubator within 5 to 10 years to develop some potentially burgeoning businesses. In the future, the Central Academe will be open-minded, to meet more opportunities and challenges.

We are in an era of changes. How to differentiate ourselves from other non-government research institutions? We've been searching for an answer. Chinese universities possess a large number of forward-looking technologies, which, however, are unavailable for companies to use and unattractive to market consumers. But many tech companies born in the innovation–entrepreneurship space are preferred by capital investors and industrial investors, and they are considered the seeds for developing new industries.

We are very conscious that the value of corporate research institutions is not only to provide forward-looking technologies but to nurture the seeds of new industries that can grow rapidly in the market. This also marks the new path of transformation and development for Shanghai Electric Central Academe: to cultivate the seeds of new industries, to lead in the Group's technological transformation, to foster forward-looking industries, and to support industrial development.

To lead in the group's technological transformation means that Shanghai Electric Central Academe should identify technologies that secure a major competitive advantage in the medium and long term, and acquire such core technologies through independent research and development, joint research and development, technology acquisition, patent licensing, and introduction. That is how we can build leading capabilities that can support the transformation of the Group in terms of electric, digital, intelligent, networking and green technologies.

To foster forward-looking industries means accelerating the group's pace in incubating many seeds of forward-looking new industries such as green energy, intelligent manufacturing, energy conservation and environmental protection, smart medical care, high-end equipment, and new materials applications through stages of seeding, incubating, accelerating, and marketing, with the help of the capital and incubation market. These forward-looking new industries of considerable scale can contribute to the group's development goals.

To support the group's industrial development means using the Academe's advantages in forward-looking new technology research and development, comprehensive patent service, joint technology introduction, external technology cooperation, and technical talent introduction to power the group's next-round development with respect to planning research, forward-looking technology scanning, merger and acquisition, and industrial technology upgrade.

The Academe aims to catch up with multinational companies such as Siemens, Mitsubishi Electric Advanced Technology R&D Center and IBM Research after 5-10 years of hard work and become a world-class academe with its own advantages and characteristics. It will step up its efforts to pool forward-looking technical resources inside and outside the group, and build both domestic and overseas business models through various capital operation methods such as merger and acquisition, introduction and joint venture. It will pick up its space to construct the incubation base for forward-looking industries, explore effective paths for industrial cultivation, seek modes of diverse cooperation built on technology, optimize and innovate its own R&D ecosystem and talent incentive policies, and build the source power for sustainable development.

Shawn Zhao, Senior Officer of the Massachusetts Institute of Technology Industrial Liaison Program

Shawn Zhao introduced the Industrial Liaison Program (ILP) established by the Massachusetts Institute of Technology in Cambridge, Massachusetts. Thanks to the ILP, lots of research institutions work together with startups in new imported technologies such as green development, energy conservation, environmental protection, and connected intelligence. The ILP has also attracted many major companies to create a lasting engine to power industrial innovation in the future.

Since its founding in 1948, the MIT Industrial Liaison Program (ILP) has remained dedicated to building and strengthening the interactive win-win relationships between MIT and global companies. An MIT department specialized in communication and cooperation with the outside world, the ILP is also the chief portal and guide for enterprises to get in touch with MIT. Being the largest industrial alliance of its kind in the world, the ILP mainly invites world-leading companies from traditional industries and high-tech ones. By far, it has gathered together more than 170 companies across the world.

Vice President, Shanghai Electric Group Co., Ltd.

Chen Ganjin: Vitalizing Innovation at Shanghai Electric

Abstract: Only by integrating individual career and development with the company's career and development, will technology be innovated. This is administrative innovation and in this way, we could strengthen the innovation impetus for technical personnel. Therefore, we should combine it with equity incentive and capital market, and promote the combination of capital and technology, let the technology realize its value in the market.

Innovation is a hot topic in today's society, not only in China but also in the whole world. Shanghai Electric attaches great importance to technological innovation. Especially in the past three years, Shanghai Electric has encouraged the emergence of new formats with a more inclusive and open attitude. Shanghai Electric has never stopped innovating.

It has never stopped its technological exploration since 1950s, bringing up many experts well-known in the industry and even in China, and participating in the establishment of industry standards. Shanghai Electric has an influence in many fields, for example, the world-leading technology in the coal industry. With a design team in place, we have put great efforts into nuclear power manufacturing and created China's best pressurized water reactors (Generation 1, Generation 2, Generation 2+, Generation 3) and high temperature gas cooled reactors, all comparable to world advanced levels. Shanghai Mitsubishi Elevator has maintained a leading position in China thanks to technological innovation. A late-starter in wind power, Shanghai Electric has been the biggest offshore wind power supplier in China, and is vying for the top three spots in terms of onshore wind power. We started our work in environmental protection from scratch and gradually found the right way. Now we have made significant progress in sewage treatment, waste incineration, biomass power generation, and river water treatment. We've built the world's largest compressor manufacturing base, yielding more than 20 million Highly-branded compressors a year.

In the past, Shanghai Electric weighed equipment over software. We've put a lot in equipment out of natural affection, but overlooked invisible software. Throughout our history of innovation, we can see that every stage, based on its distinctive characteristics, is dealt with different methods and approaches. Next we will increase investment in soft strength including expertise and technologies.

What to do now? As China replaces old economic drivers with new ones, we are now facing the biggest changes in the external environment. First, a change toward a green economy. President Xi's speech at the 19th National Congress reveals China's unprecedented efforts in environmental protection. No processing factories are found around Shanghai, and coal power generation is brought under control by ministries and commissions in Beijing. In this light, a boom is expected in eco-friendly industries. China's overall economic transformation will definitely steer the energy sector towards "green development and energy conservation". Second, a change toward intelligent equipment, from automation to intelligence, to AI, and then to man-machine dialogue. Shanghai Electric needs to intensify its efforts in automation, for example, analog control, digital control, big data, and brain-computer synchronization. To catch up, we have established Shanghai Electric Automation Group, making automation a major industry.

How could we keep up with the times? Our chairman has proposed a three-step strategy for the next ten years. In this case, how could we drive technological innovation? This is a big issue. As a market-oriented company that puts our technological achievements to test in the international competition, we must find out ways for technological innovation: first, the optimization of existing technologies; second, merger and acquisition, joint venture, and cooperation; third, independent innovation and incubation.

Only by integrating individual career and development with the company's career and development, will technology be innovated. This is administrative innovation and in this way, we could strengthen the innovation impetus for technical personnel. Therefore, we should combine it with equity incentive and capital market, and promote the combination of capital and technology, let the technology realize its value in the market.

Talents, the most valuable assets, are essential to our team building. It is a big challenge to build a steady talent pipeline. The key is to help our talents relieve from the pressure of finding a house to live in. To build a globally influential center for scientific and technological innovation, Shanghai needs to introduce effective policies, for example, encouraging state-owned enterprises to build talent apartments available for rent only. With housing problems solved, talents will stay in Shanghai. As the young are key to China's economic changes, we must prioritize talents, especially young technical personnel, so as to play a role in the overall economic transformation. On the path of socialism with Chinese characteristics under the leadership of President Xi, China will enjoy rapid scientific and technological development. Taking advantage of the development, Shanghai Electric will enhance its technical strength and embrace a promising future.