Guideline, Principle and Development Route

   1. Guideline

   Taking Deng Xiaoping’s theory and “Three Representatives” important ideology as the guidance, carry out scientific development concept of “Taking person as the principal”. According to the requirements that firstly develop vigorously old industrial base in Northeast, construct important international shipping center and international city in northeast Asia and build completely harmonious society, aiming at important international software famous city, “strong city of information industry” in northeast Asia, taking enterprises with advantages and big projects as the core, inviting business and absorbing investment as the focal point, develop rapidly independent technology, independent brand and independent marketing route abroad in electronic information production industry, promote the level of industrial cluster so as to realize a jumping development on the new start; With Europe, U.S.A. and Japan’s bases of high-level software in China as breakthrough, taking training, introducing and gathering of talent as the core, with internationalization as the focal point, improve rapidly independently innovation ability, promote the jumping development of software and information service industry; promote information industry to become the first largest pillar industry (the industry with the largest added value) in Dalian by powerful measures so as to promote adjustment of industrial structure and change of economic growth method in Dalian
Drive industrialization depending upon informatization, with informatization of enterprise as focal point, with e-government affair as the drive, actively promote information technology to apply in all fields, build rapidly “Digital Dalian” to make Dalian become model city of informatization in China or even northeast Asia.

   2. Principle

   (1) With independent innovation as commanding principle: command whole development of information industry by independent innovation to support the development of the industry at high speed through independent innovation; create good social environment for the development of information industry by the way to innovate in both system and management.
   (2) Principle of guiding under the government and running on market: bring actions into play fully including planning by government as a whole, macroscopic readjustment and control, organization and promotion, unitive standard, guiding by policy. Besides bring actions of market in resource disposition into play fully to optimize resource disposition and activate various resource so as to promote the achievement.
   (3) Principle of developing clusters with characteristics: through integrating resource, build technological cluster and industrial cluster at different levels with different features and obvious advantages, improve completing ability of industry, put more effort on building famous brand product and industrial cluster with strong international competitive advantages.
   (4) Principle of completely planning and focally breaking through: based on integrated consideration of existing basic condition in electronic information industry and informatization and combing with whole strategy and important chance for development of the city in Dalian, make a whole plan to the construction of information industry and informatization in Dalian to promote the progress of development of information industry by stage, step by step; insist on the policy that “Do things that are necessary, don’t do those things that are unnecessary”, aiming at technology and industrial field with good future of market and obvious independent advantages, invest focally on them and tackle key problems together to try best for breaking through in research and development of key technology and applicable field of industrialization.

   3. Strategic Positioning

    During the period of “11th Five-year”, the information industry in Dalian will be increasing at high speed, by 2010, the added value of information industry will reach 45.6 billion yuan, GDP in Dalian is forecasted to reach 396.1 billion yuan in 2010, so the added value of information industry will account for over 11% of regional GDP to become the first largest pillar industry which can promote national economy increasing and the structure upgrading, as well as become the strategic industry which can strengthen integrated power. At that time, national economy and social service level of informatization will take a new step, the essential frame of digital Dalian will be built, the whole level of informatization will reach the leading position all over the country. Dalian will be built as important international famous city of software, “strong city of information industry” and model city of informatization in northeast Asia.

   4. Development Route

   (1) Development route
   ---Promote technological innovation, adjustment of structure and increasing of investment depended upon innovation of system, and break through industrial bottle neck in talent, capital, technology etc.
   ---Form rapidly technological innovation system with enterprises as main body to improve the ability of independent innovation.
Gradually break away from comparative advantage based on low cost to cultivate competitive advantage based on innovation, improve innovation ability and core competence, master core technology in some industrial field, increase the proportion of product with independent intellectual property rights, enlarge the development and application of new technology and business; actively participate in the establishment of international and national standards.
   ---Improve the ability of enterprise in operation of capital and brand, quicken and strengthen investment on fixed assets to guide enterprises doing largely and strongly by the way to merge, regroup, buy etc.
   ---Quicken the progress of internationalization, promote the ability to integrating international resource.
Actively, rationally and efficiently utilize foreign capital, put more effort on introducing foreign capital and improve the quality of using foreign capital. Adjust the structure of exported products, enlarge the scale, stress the important position of information industry in foreign trade export in Dalian.
   (2) Detailed thinking
   Grasp the chance that electronic information industry is transferring in the world, firmly center on strategic task that develops vigorously old industrial base in Northeast, face two markets and utilize two resources home and abroad, to build the brand image of Dalian information industry by implementing development strategy of “two industrial leadings, two tops, four industrial chains, five industrial parks, six strategies and nine projects” and realize the jumping development of information industry in Dalian.
    Two industrial leadings: continuously do software and information service industry largely and strongly further, keep them the leading position in China; develop chip and plant electronic manufacturing industry largely to try best for leading position in China.
    Two tops: try best for forming two topping complete machine industries of digital TV and mobile communications, to promote relating parts and components increasing scale and level.
    Four industrial chains: perfect and strengthen four industrial chains including car audio, photoelectron, micro-electron and furnishment electron (industrial electron, electron for vessel).
    Five industrial parks: construct five industrial parks including digital audio＆ video, electronic component, photoelectron, micro-electron and furnishment (industry) electronic industry to form industrial distribution with centralized area, obvious feature and rational layout.
    Six strategies: implement brand upgrading strategy, independent innovation strategy, capital operation strategy, talent gathering strategy, syncretizing industries (syncretize furnishment manufacturing industry and information industry) strategy and outgoing (foreign capital, foreign trade, re-innovation of imported technology, go out) influence strategy to promote the structure upgrading, realize the industry lift-off.
    Nine projects: implement nine projects including flat panel display component, basic component, green illumination, digital audio& video, the third generation mobile communications, semiconductor IC, automobile electron and electronic instrument, meter, electron for vessel and RFID to upgrade industrial level, enlarge industrial scale.

   Main Development Target

   1. Total Target

   The information industry will be increasing at high speed during the period of “11th Five-year”, by 2010, it will realize sales income 131.9 billion yuan (in which 81.4 billion yuan from electronic information manufacturing industry, 50.5 billion yuan from software and information service industry), export US$11 billion, total of profit and tax over 10 billion yuan, total investment 13 billion yuan (in which over US$ 1 billion invested directly by foreigner), total expenditure for R&D of information industry will be over 5% among sales income.
   In which, electronic information manufacturing industry will reach sales income 81.4 billion yuan, 19% up yearly, export US$8.5 billion, 23% up yearly; software and information service industry will reach sales income over 50 billion yuan, 38% up yearly, export US$ 2.5 billion, over 50 up yearly.
   The rate of added value in electronic information manufacturing industry is 25% with added value of 20.35 billion yuan; The rate of added value in software and information service industry is 50% with added value of 25.25 billion yuan.

  2. Target for increasing technological innovation and level

   Quicken the process to adjust the structure of products, select several key projects which have important influence to the development of industry and put attention on them for pushing and supporting so as to promote the industry developing along intensive, cluster and innovative way. With enterprises as main body, centering on focal development fields, establish several key labs and joint development institutions by the method combining with industry, university and research institution to promote technological innovation ability of the industry completely. Along the developing mode of industrial cluster, plan and build several professional IT industrial parks in E & T Development Zone, High-tech Park etc., promote innovation ability and competition power of industrial clusters during the independent innovating through inviting business and investment, regrouping and integrating. Invest much for information industry, especially invest for R & D expenditure. By 2010, investment for R & D expenditure will account for over 4% of sales income, and investment for software and information service technology expenditure will account for over 12% of sales income, the contribution rate of innovation will be over 50%.

   （1） Software and information service industry
   ---Actively push quality control standards such as ISO attestation, BS7799 attestation, CMMI appraisal etc., especially organ more enterprises for CMMI appraisal. By 2010, enterprises which passed CMMI attestation in Dalian will be over 50 to improve research & development and management level and ability to adapt international market.
   --- Put more attention on supporting and encouraging research & development and production of software products with independent intellectual property rights while developing largely software outsourcing and BPO business to form 40-50 products with independent intellectual property rights and innovative features.
   ---Actively push the construction of digital contents industrial base, animation hall, digital artwork processing base, import digital technology from Japan, Korea, Europe, U.S.A. etc. to quickly cultivate enterprises for research & development of digital contents and production and make them become new increasing point of software industry.
   --- The proportion of investment for R & D expenditure of software industry among sales income will increase over 12% from 10% in the end of 2005.
   --- The output of software industry per worker yearly is over 440,000 yuan.
   （2）Electronic information product manufacturing industry
   --- The proportion of investment for R & D expenditure among sales income will increase over 4%.
   --- The productivity of added value in electronic information product manufacturing industry is 210,000 yuan per worker yearly.
   --- The rate of added value in electronic information product manufacturing industry is 27%.

Table 1 ??Prospective Target as Innovative Industry of Dalian Information Industry

   3. Target for training, introducing and gathering of talent
   Continuously optimize the environment of policy to improve attraction to talent and integrated advantage of industrial development; put all efforts for clearing talent problem, gradually establish and perfect education and training system of software talent at various levels. Enlarge training scale of majors relating to information industry in existing universities and secondary schools to bring up talent team in support; establish talent training base towards all over the country to provide to Dalian with lots of talent with high skill in software development and business management; absorb domestic and foreign institutions to Dalian for operation of school to carry out training engineering of internationalized talent, and let Dalian become important training base of talent in information industry in China; do series of invitation event for global IT talent well to ensure the needs for talent from development of the industry. By 2010, employee who are working in the information industry will be over 210000 persons and professional persons will be over 100000.
   (1) Software and information service industry
   During the period of “11th Five-year”, continuously put more efforts on training, introducing and stabilizing of talent in software and information service industry. Based on 15000 students who are studying in five software colleges now, try to enlarge the scale, provide over 8000 professional persons to software industry every year, and increase year by year. Professional training institutions shall develop gradually in scale and normalized way, strengthen the cooperation between local enterprises, training institutions and domestic and foreign famous training institutions to carry out training of talent, form training system of software talent at high, middle and low levels. In the policies of introducing talent, based on relating policies of “ Several provisions on attracting software senior talent in Dalian”, further optimize environment for introducing talent and policy measure, keep new software enterprise increasing at rate of 40% and over every year, increasing software engineer more than 5000 persons every year, and gradually increase year by year. By 2010,
   --- Employee in software and information service industry will reach 110000 persons;
   --- The students who are studying in software colleges will reach 50000, annual graduate will reach 15000 persons, professional training persons will reach 50000.
   --- Professional persons in software and information will reach about 80000, in which about 60000 with educational level of undergraduate course and over.

1. Electronic information product manufacturing industry

       By 2010,
   --- Employee in electronic information product manufacturing industry will reach about 100000.
   --- Professional persons in electronic information product manufacturing industry will reach about 25000 in which senior persons reach over 5000, 26000 persons with educational level of undergraduate course and over.

   4. Target of investment
   A steady increasing in investment scale is necessary for industry to develop smoothly. In order to realize development target at high speed in Dalian electronic information industry during whole period of “11th Five-year”, by 2010, it is necessary to invest about 60 billion yuan for whole information industry in which 32 billion yuan for fixed assets of electronic information products manufacturing industry, 30% up yearly; about 28 billion yuan for software and information service industry, 30% up yearly. Among that investment, approximately more than 40% will be resolved by the route to invite foreign fund.

   5. Target of cultivating products and enterprise with advantage
   Tightly grasp the new chance of transferring industry in global scope, unalterably implement the strategy of great enterprise and great project, carry out inviting business and investment selectively and focally to import and construct a lot of great domestic and foreign enterprises and great projects with high level of technology, large scale of industry and obvious influence, try for a new breaking achievement in scale and quantity. Change the concept, strengthen sense of innovation, strengthen functions of “Guide, norm, supervision and management, service” further, build the environment in favour of industry development at high speed, create perfect industry service platform integrating policy, fund and information.
   (1) Software and information service industry
   --- By 2010, cultivate 4-6 enterprises of software and information service at large scale with annual business turnover more than RMB1 billion yuan(or more than 3000 staff) ;
   --- By 2010, more than 50 enterprises will pass international quality attestation such as CMMI etc., in which 15 enterprises will reach 5-class or over;
   (2) Electronic information products manufacturing industry
By 2010, cultivate one enterprise with advantages and annual sales income over 30 billion yuan; cultivate 3 enterprises with advantages and annual sales income over 10 billion yuan.
   --- New-type flat panel display component. In following 2-3 years, production capacity will double on existing base,? production capacity of display shall occupy 10-15% in the country;
   --- Digital audio & video products. During the period of “11th Five-year”, establish and form industry cluster of digital TV. By 2008, high definition color television will realize 2 million sets; device of digital television production, transceiver will realize 1500 sets; products including digital cable receiving and middle-ware etc. will reach 30000 sets. By 2010, high definition color television will realize 3 million sets; device of digital television production, transceiver will realize 2000 sets; products including digital cable receiving and middle-ware etc. will reach 40000 sets. Develop the scale of car audio further to build the largest production base in Asia, try best to realize production capacity over 5 million sets in 2006, 6 million sets in 2008 and 8 million sets in 2010. Put more efforts on cultivating and supporting such products as car software, car-carried communication system, car-carried display, car electronic control system, car sensor, car illumination system etc. By 2010, the above products will realize sales income at 3 billion yuan.
   --- Communication industry. Within 3-5 years, build the brand of communication industry in Dalian. Build 1-2 enterprises of communication industry in large scale over 5 billion yuan by inviting business and investment to build up communication industry base with mobile communication industry as main, completely develop terminal, system and relating software of mobile communications, realize sales income of communication industry at 10 billion yuan.
   --- Semiconductor industry. Try best for building up the largest semiconductor industrialization base in Northeast of China within 5-6 years. Own a lot of enterprises which are famous in IC design and IGBT component in the world and a lot of IC products on high level with independent intellectual property rights to provide with core products for development of IC and IGBT industries and reformation of traditional industry in Northeast region, which will produce strong radiation and influence to development of semiconductor industry in Northeast even in China; build up research & development, production base of semiconductor illumination to make Dalian become research & development, production center of semiconductor illumination in China.
   --- Furnishment electron. Build industrial electronic industry structure with MNC, state-owned holding enterprises as core, supported by lots of industrial electronic innovative enterprises in small and middle scale with professional feature, integrating production, marketing and service, keeping eye on high, middle and low levels. During the period of “11th Five-year, promote furnishment electronic industry to form rapidly fire-new situation integrating research & development, production & manufacturing, system integration and complete application to give support in technology, system and application of products for reformation of traditional industry and completely upgrading of furnishment manufacturing industry. Try efforts to make furnishment electronic industry forming industry scale of 10 billion yuan in 2010, becoming the base of research & development, production and technical service of industrial control electron in Northeast region.

   6. Target of system
   Deepen reformation continuously to put attention on reformation and development of state-owned enterprise, promote strategically regrouping and establishing of modern enterprise’s system of state-owned enterprise. Actively cultivate and develop non-governmental and foreign enterprises, groups with abundant power and strong competition. By 2010, ??
   --- The proportion of sales income from non-governmental enterprises among whole industrial sales income is over 40%;
   --- The proportion of foreign enterprises is over 40%;
   --- The proportion of investment from non-state-owned economy is over 70%.

  Target of Informatization

   1. E-government Affairs
   Building up safe and reliable e-government affairs network serve linking all departments with perfect functions, building up service system of office decision-making in party and government organizations, realize internal office in electronic and network way; completely improve whole construction and service level of Dalian government portal site and sub-sites to enlarge the scope of online releasing governmental information further, increase items of online handling matters, improve online exchanging level with public. Building up party and government public information site to realize governmental information releasing on the site and online real-time examination and approval for those items which are necessary to be examined and approved by government. Build key business system and basic resource databases generally to share information resource at high level.

   2. E-business
   Form “1248” frame to develop e-business in Dalian, based on informatization of enterprise, put more efforts for developing e-business which is approaching to the world but has Dalian’s feature. Enhance and perfect the construction of “Dalian e-business payment gateway”, perfect CA attestation system for e-business, and construction of security configure, payment method, logistics and delivery, network server, legal environment and corresponding infrastructure, establish and perfect management and operation mode of e-business, put efforts on talent training and public promotion. Try best to reach volume of trade from Dalian e-business at the amount of 1.5 billion yuan before 2007 and 3 billion yuan in 2010. ?
Establish perfect basic support system of e-business and enterprise network system of e-business to form comparatively normative market and good social environment, build the central position of e-business in Northeast region, and realize purchasing and selling business by e-business in most of enterprises at large and middle scale in whole Dalian. Serve to Northeast Asia international shipping center by information technology, and promote the construction of digital port by information technology.

   3. Informatization of Enterprise
   It must establish function division of informatization and set up CIO in those enterprises at some scale; informatization system of enterprise management shall cover 100%; the main products of enterprises will realize CAD completely, CAPP/CAM partially; 100% enterprises will establish website, most of enterprises can carry out purchasing of raw materials or parts and selling of products by e-business.

   4. Informatization of society
   Form basically the environment in electronic and network way in social public area including education, tourism, social security, medical treatment and health, community, finance etc. to meet the various demands from residents, and the level of informatization will reach the leading level in China. Strengthen the construction of support system to agricultural informatization to decrease even eliminate “digital wide gap” between urban and rural area, reform and upgrade traditional agriculture, promote the adjustment of agricultural structure by information technology to push constructing progress towards modernized agriculture and socialism new country.