Driving High-Quality Development with Scientific and Technological Innovation: How Hefei Has Become an Innovation Center in China

The report to the 20th CPC National Congress which was held in October 2022 highlighted quantum information as a field in which China has achieved major scientific and technological success. Zhou Lei, a National Congress delegate, and vice president of QuantumCTek Co., Ltd., drew great encouragement from this. “In today’s world,” he noted, “it is only by mastering the critical task of technological innovation and pursuing a high level of technological self-reliance that we can continue to open up new areas and arenas in development.”

Though born in the 1980s, Zhou Lei is a veteran of the quantum technology field. In 2009, after obtaining his doctorate at the University of Science and Technology of China (USTC), Zhou joined QuantumCTek, where he focused on the development and application of quantum communication technology, which was an unexplored area of quantum technology applications at the time. Progress in this field did not come easily. At the outset, Zhou and his colleagues faced many technical and engineering difficulties, including the problems of component miniaturization and end-product integration. At that time, the technology for avalanche photodiodes, a core component in quantum communication receiver systems, was under foreign control. This spurred QuantumCTek to collaborate with USTC and China Electronics Technology Group on an industry-university-research initiative. After years of dedication and teamwork, the R&D and manufacturing for this core component were finally completed. “Compared with imported components, our products have core indicators that are five to six times higher,” said Zhou with confidence and pride. Through tireless experiments, QuantumCTek has injected much life into what was once a technological terra incognita. Now, more and more quantum technology innovations are moving from lab to production line to meet China’s major national needs as well as needs in daily work and life.

The hybrid magnet at the Steady High Magnetic Field Facility (SHMFF), which was developed by the High Magnetic Field Laboratory, the Chinese Academy of Sciences. On August 12, 2022, a new world record was set at the facility. PHOTO BY HEFEI DAILY REPORTER ZHANG ZHENGPENG

Hefei, located in Anhui Province, has been an early mover in the quantum technology field. In addition to nurturing and supporting the development of QuantumCTek, the city has facilitated the clustering of a host of upstream and downstream enterprises in this industry. This is a vivid example of “reinforcing the principal role of enterprises in innovation and giving full play to the guiding and supporting role of key high-tech enterprises”—a requirement set forth in the report to the 20th CPC National Congress. With a focus on quantum communication, quantum computing, quantum precision measurement, and other similar areas, Hefei has so far attracted or fostered over 40 quantum technology enterprises to create an industrial paradigm that is delivering success at multiple points. Such progress has taken the city to commanding heights in China’s quantum sector.

The quantum technology industry’s rapid growth vividly illustrates how Hefei has persistently promoted innovation-driven development. It has remained ahead of the curve in innovation by regarding scientific and technological innovation as akin to planting a tree that will take time to bear fruit. It continues to generate new momentum and strengths for development by relying on major platforms like the Hefei Comprehensive National Science Center and the USTC Silicon Valley. Currently, Hefei is one of China’s leading provincial capitals in terms of innovation indicators and ranks 16th globally as a research city and 55th globally as a science and technology cluster.

On August 12, 2022, the Steady High Magnetic Field Facility (SHMFF), located in Hefei’s Science Island, set a new world record by producing a steady-state magnetic field with a strength of 452,200 gauss, surpassing the previous record of 450,000 gauss set 23 years ago. Steady-state magnetic fields create extreme experimental conditions for the study of physical science and contribute to major scientific discoveries. “The Earth’s magnetic field is about 0.5 gauss, so the new record is equivalent to more than 900,000 times the Earth’s magnetic field,” said Fang Zhen, associate research fellow at the High Magnetic Field Laboratory at the Hefei Institutes of Physical Science of the Chinese Academy of Sciences. “The stronger the magnetic field, the more helpful it is for exploring the internal structure of matter.” Since it was put into use, SHMFF has supported more than 3,000 cutting-edge research projects, leading to a series of important scientific breakthroughs.

While serving and supporting efforts to achieve major breakthroughs in the development of nationally critical technologies, Hefei has also adopted the view that “technology equals industry” and has worked to promote virtuous cycles between science and technology, industry, and finance. In 2022, it established a dedicated team for commercializing scientific and technological advances to accelerate progress on this front. The city has also focused on resolving financing difficulties in the “first mile” of commercialization by setting up a direct-investment seed fund with high-risk tolerance to provide early investment to small enterprises boasting cutting-edge technologies, thus supporting promising companies with seed funding. Researchers have benefited greatly from this initiative. In 2022, Dr. Peng Jiao and her team, recognizing a gap in the market, independently developed plasma cleaning equipment, achieving the first domestic breakthrough for this core product. However, Peng was unsure about how to start a business. At the critical moment, Hefei’s taskforce for commercializing scientific and technological advances stepped forward with strong support. With its help, Peng was approved for funding of two million yuan from the city’s seed fund, providing a strong boost for Peng’s firm.

An increasing number of science and technology enterprises are emerging and thriving in Hefei. In 2022, the number of national high-tech enterprises in the city increased by 1,834, an average of 5 new additions daily, bringing the total to 6,412. Hefei also nurtured more than 8,200 national small and medium-sized science and technology enterprises, close to a 70% increase compared with the previous year; and 78 new “little giant” enterprises, which use sophisticated technologies to produce novel and unique products, also emerged, bringing the total to 139. Hefei’s taskforce for commercializing scientific and technological advances identified over 1,000 innovations with commercial potential developed by universities, research institutes, and other institutions. The number of authorized invention patents surpassed 10,000 for the first time, with the total transaction value of technology contracts exceeding 100 billion yuan.

Technological innovation is also driving innovation in industry. Hefei is fully committed to becoming a strong industrial city. It is taking steps to shore up weaker industries, extend value chains in stronger industries, upgrade traditional industries, and develop emerging industries. The city continues to promote the integrated and clustered development of strategic emerging industries. In Hefei today, strategic emerging industries, such as integrated circuits, new display devices, new energy vehicles, and intelligent manufacturing, are all developing at a rapid clip. In 2022, such industries accounted for 78% of industrial growth, becoming the decisive factor in technological innovation and the biggest driver of high-quality development in Hefei.