A view of Shanghai. [Photo/IC]

Shanghai's key industries have witnessed a significant rise in international competitiveness, underscoring the city's robust industrial foundation and efficiency advantages, as revealed by the latest 2023-24 Shanghai Key Industry International Competitiveness Series Report.

Released during the 2024 Shanghai Industry International Competitiveness Development Conference on Nov 15, the annual report, compiled by the Shanghai Academy of Social Sciences, showcased Shanghai's global ascent.

From 110.1 points in 2018 to 121.8 points in 2023, the report signifies a significant growth trajectory, reflecting the rise of Shanghai's comprehensive industrial competitiveness, with a momentum of accelerated growth transformation, as emphasized by Tang Yunyi, vice director of the Institute of Applied Economics at the academy and executive director of the Center for New Economy and Industrial International Competitiveness.

Tang emphasized his satisfaction regarding Shanghai's expanding influence in the international market. Between 2018 and 2023, the international market performance index within Shanghai's key industries exhibited its highest average growth rate, climbing from 99 points to 122.7 points, marking a substantial average growth rate of 21.46 percent.

Tang also highlighted the advantages mega-cities possess in manufacturing services and innovation, positioning them for increased opportunities and advantages in global competition. Shanghai's industrial international competitiveness index surged from 113.2 points in 2018 to 124 points in 2023, underscoring the city's commitment to service investment and innovation.

Despite these advancements, the report pointed out a decline in Shanghai's industrial agglomeration level and domestic market performance. While Shanghai has established numerous specialized industrial parks, its advanced manufacturing cluster advantage falls short compared to provinces like Guangdong and Jiangsu. In terms of research and development investment, Shanghai's R&D expenditure accounted for approximately 4.4 percent of the GDP in 2023, up from 4.2 percent in 2022.

The report also highlighted Shanghai's transition into a net exporter of domestic technological achievements since 2016, leading to a more rationalized industrial structure and a balanced distribution of key industrial competitiveness. In 2023, sectors such as new energy vehicles, biopharmaceuticals, traditional industries, and energy equipment collectively contributed over 78.42 percent, serving as the primary drivers behind the city's enhanced key industrial international competitiveness.

Tang proposed a series of strategies for Shanghai's future development, emphasizing innovation leadership, the construction of competitive industrial clusters, open cooperation for new development momentum, enhanced industrial supply chain resilience, adherence to high-standard trade rules for low-carbon development, improved resource allocation efficiency through factor connectivity, and the implementation of new trade models to facilitate high-quality global industrial layouts.