Yangtze delta region to drive world-class tech innovation

Officials and experts have called for the further enhancement of "soft links" in the Yangtze River Delta region, including seamless data flows and collaborative innovation platforms, to drive high-quality development and advance China's goal of building a unified national market.

The discussions emerged at a recently held forum on the YRD's integrated development in Shanghai. Now in its eighth consecutive year, the forum released 10 initiatives to deepen regional ties in areas that include government services, mutual recognition of medical examination results, talent development, as well as cultural and tourism consumption.

The third batch of 12 YRD innovation consortia was also announced, aimed at promoting the coordinated development of new quality productive forces, including nuclear fusion energy, biomedicine, green fuels, integrated circuits, artificial intelligence, new materials and new energy storage.

In his address to the forum, Shanghai Party Secretary Chen Jining said basic research will be strengthened in the YRD during the 15th Five-Year Plan (2026-30) period to make the region a world-class source of technological innovation.

To achieve this goal, jointly built technology funds in the region should be expanded and made more efficient, while innovation consortia should play a larger role. Major scientific infrastructure should be opened to more users, and scientific data should be shared more efficiently, he said.

Chen also called for cross-regional application scenarios to spur innovation, more jointly introduced international standards, and the development of more industrial parks to advance new quality productive forces.

Free trade zones in the YRD will be supported to conduct stress tests on cross-border data flows and cross-border research and development, said Xiao Weiming, deputy secretary-general of the National Development and Reform Commission.

Data should be better supplied and more efficiently used to amplify its role as a production factor in regional integration, said Liu Yingfeng, chief engineer of the Shanghai Data Bureau. He added that efforts should focus on pooling innovation resources, achieving breakthroughs in major application scenarios, and pioneering regional standards.

Funding is also critical to developing new quality productive forces. While government-backed and market-based venture capital funds have been established in the YRD, their investment targets have become increasingly similar, potentially intensifying competition for resources, said Wang Jingbo, managing director of a global investment firm IDG Capital.

Wang suggested that national asset platforms in the region work with regional government funds and leading market institutions to establish industrial funds, merger funds and special funds focused on key segments of industrial chains or strategically important sectors with higher cyclical volatility.

The YRD also benefits from a strong talent pool, with more than 7,900 top international scientists, more than other comparable regions in China, according to Ruan Qing, head of the Shanghai Institute for Global City.

The region has also seen the rise of "migratory" talent, with cross-city commuting increasing 168 percent during the 14th Five-Year Plan (2021-25) period, according to Liu Fei, director of the public services division of the Hongqiao International Central Business District administrative committee.

To support closer integration, a transportation connectivity action plan was unveiled at the forum. It includes 44 projects aimed at accelerating a multi-level rail transit network, improving highway accessibility and building an integrated river-sea intermodal transport system.

In late 2024, State-owned enterprises from Shanghai, Jiangsu and Zhejiang provinces jointly established an operating company for regional rail networks around Shanghai.

Its chairman, Xu Ganfeng, said high-quality transport integration depends on deeper institutional innovation, including reshaping the balance of powers, responsibilities and interests in cross-jurisdictional governance.

Zhang Zhao'an, a researcher at the Shanghai Academy of Social Sciences, said YRD integration is not simply about "stitching physical spaces" but about aligning "soft rules", such as technical standards.

Chen Jining, Shanghai Party secretary, said the region will further strengthen the alignment of policy formulation, consistency of regulations and coordination of enforcement.

On May 1, YRD governments jointly released regulations on promoting coordinated government affairs in the region, aimed at advancing cross-regional public service collaboration, data sharing, process re-engineering and standard unification.