Transfer of Shenzhen's hi-tech industries: An empirical study

Purpose: The purpose of this paper is to examine the transfer of Shenzhen's hi-tech industries, with particular emphasis on its motives, characteristics and influence on Shenzhen's economy and industrial upgrading. Design/methodology/approach: The paper uses an empirical approach and case study methodology mainly based on a survey of 1,573 hi-tech companies in Shenzhen, in the form of questionnaires and interview. Findings: Hi-tech companies moved out to other cities on a small scale, revealing an accelerating trend. Most companies moved out (or plan to move out) with the purpose of seeking low production costs or meeting the needs of resources for development. Moreover, companies with different types of ownership transfer at different levels. In general, reasonable transfer of hi-tech industries facilitates Shenzhen's industrial upgrading; however, the government should at the same time take precautions against industry transfer on a large-scale. Practical implications: Upgrading of Shenzhen's hi-tech industry is imperative. To meet this end, policy makers should draw up appropriate guidelines on the transfer of backward hi-tech industries and at the same time build sound supporting environment to attract and retain advanced hi-tech companies. Originality/value: Few empirical studies have been conducted to explore industry transfer within China. By examining the motive and characteristics of transfer of hi-tech industries in Shenzhen, a pioneering city in China, this paper contributes to our understanding of the ongoing industrial restructuring in China.