1. Development Status
In 2015, Nanjing’s cloud computing and big data industry made steady improvements in terms of spatial layout, industrial scale, levels of technology, and scope of the industrial chain, and achieved healthy and rapid development. Revenue from the industry was RMB 46.2 billion, with a year-on-year growth of 15.9%. In 2015, Nanjing's Internet of Things (IoT) industry achieved sales revenue of RMB 105 billion, 3.5 times that of 2010, with an average annual growth of 27%. The industrial scale ranked No.2 in Jiangsu province.
The IoT industry has a number of leading backbone enterprises such as Glarun Group, NARI Group Corporation, Nanjing Sample Technology, Linkage Group, and Jiangsu Nandasoft. The industry has two enterprises with annual sales revenue of over RMB 10 billion each and 38 enterprises with annual sales revenue of over RMB 100 million each. Eight enterprises are on the list of key project firms that are involved in six operational priorities for Jiangsu province, 18 enterprises are rated as firms of provincial IoT model construction projects, and 52 enterprises are included in the list of key provincial IoT enterprises. Nanjing has over 280 IoT enterprises, forming a complete industrial chain that covers key IoT links such as hardware, software, systems integration, and operation services. Moreover, two provincial IoT bases that support four distinct IoT industrial bases have formed a “2+4” industrial model. The two provincial IoT bases are Xuzhuang Base,which focuses on component and application integration, and Xianlin Base, which centers on sensors. The four distinct bases include Gulou Base, Yuhua Software Valley, Qinhuai Intelligent Transportation Base, and Jiangning Smart Grid Base. Gulou Base focuses on technology R&D and operation services, while Yuhua Software Valley centers on application software. Currently, the "2+4" industrial bases have agglomerated more than 90% of Nanjing’s IoT enterprises and more than 86% of the IoT aggregate.
2. Development Advantages
Industrial categories: From the aspect of business directions of member enterprises of Nanjing Big Data Industry Association, the industry can be classified into four types. There are 17 big data collection and processing enterprises, 15 big data analysis and application enterprises, 20 big data association technology R&D enterprises, and 32 big data support and service enterprises. Major service fields include communications, finance, electricity information, network application and security, transportation and logistics, and industrial IOT. However, few data mining services and innovative applications are provided in the fields of medical treatment and health, modern agriculture, culture and education, and social security. Therefore, there is space for developing and guiding data innovation in public services.
Development scale: Among member enterprises of the Association, 77 big data enterprises have been registered in Nanjing, 90% of which have been registered for more than three years. The cumulative registered capital is RMB 1.987 billion (excluding large-scale enterprises such as China Mobile, China Unicom, China Telecom, Suning, JD.com (Jingdong), Huawei, and ZTE). There are 16 enterprises with their respective registered capital of more than RMB 40 million. Most of them are comprehensive service providers, have benefited the economy in application service fields related to communications, finance, and energy management, and have driven the extension of the industry. There are 53 micro, small, and medium-sized enterprises with their respective registered capital of less than RMB 5 million. Such enterprises focus on big data association technology services and tool innovation. Numerous start-up enterprises with technical expertise and business model innovation have been increasingly active over the past two years.
Citywide distribution: More than 70% of member enterprises of the Association have gathered in China (Nanjing) Software Valley in Yuhuatai District, with others clustering in Gulou, Qinhuai, and Jiangning Districts. Yuhuatai District has become the development area where Nanjing's big data enterprises have clustered. The main site of the Association is located in Yuhuatai District. Based on visits and interviews with enterprises over the past two years, most big data enterprises think that the Valley's supportive policies for the information industry, great industrial atmosphere, and good business cooperation opportunities have provided original software R&D enterprises in the area with congenital advantages for transformation or for developing big data business. Such advantages of China (Nanjing) Software Valley have also attracted numerous enterprises from other cities and local start-up enterprises to settle down there. It is hard to find office space in Nanjing’s big data industrial bases, which proves the strengths of the bases from a market perspective.
Development needs: After visits and interactions, it was found that access to data sources, cooperation in business resources, and technical application exchanges are common development needs of big data enterprises. Big data technology R&D and innovative application enterprises are different from those having high requirements for policy and financial support. The market has verified the role of and value brought by mining and using data resources. Consequently, openness of government data and sharing of data pools have become the primary needs of the industry.
3. Development Goals and Priorities
According to the Nanjing’s Three-Year (2016-2018) Action Plan for Promoting Big Data Development, Nanjing will focus on promoting openness and sharing of big data, encouraging the application of big data, accelerating development of the big data industry, and strengthening big data information security to finish 12 key tasks. This plan will drive the city's economic transformation and upgrade and industrial restructuring and improve the government's administrative ability. By 2018, Nanjing will basically achieve cross-department data resource sharing and preliminarily enable association, openness, and sharing of government data and social data. At that time, big data will be widely used in several fields such as Nanjing's administrative management, public services, and economic development. The big data industrial scale will grow at an average annual rate of 20%.
Nanjing Implementation Plan (2015-2017) for Made in China 2025: "Focus on independent innovation and industrialization of key technologies such as virtualization, cloud storage, cloud security, cloud middleware, and data storage and processing. Intensify the integration of fields such as cloud computing and big data, IoT, mobile Internet, and smart cities, and innovate and explore new services and business models. Endeavor to make breakthroughs in core technologies such as intelligent sensors, radio-frequency identification (RFID), intelligent transmission, and intelligent information processing. Accelerate R&D and industrialization of key technologies such as intelligent sensors, RFID tags, RFID readers, intelligent terminals, smart wearable devices, intelligent analysis, and service integration. Implement, demonstrate, and promote IoT applications and services such as smart industries, intelligent transportation, intelligent energy conservation and environmental protection, and smart medical treatment and health."
By the end of the 13th Five-Year Plan period, the city’s IoT technology R&D, system development, and service provision capabilities will be in full swing, and an IoT industrial system that integrates technological innovation, large-scale development, and market applications will be established. Nanjing will become China’s leading and internationally influential IoT industrial base, a state-of-the-art platform of technological innovation, and a model zone that demonstrates the application of science and technology. By 2020, Nanjing's IoT industrial sales revenue will exceed RMB 180 billion, with an average annual growth of more than 12%.
4. Supportive Policies
Nanjing's Three-Year Action Plan for Promoting Big Data Development
Opinions on Accelerating Development of the Big Data Industry
5. Development Vehicles
China (Nanjing) Software Valley
Nanjing Software Park
Jiangsu Software Park