SPARKS FLY: Inside FAW-Volkswagen Automotive Co. Ltd.'s Chengdu workshop (JIANG HONGJING)

Founded in 2010, Chengdu Pinguo Technology Co. Ltd. is a start-up software company known for its Camera 360 app. Over 100 million people have used the app worldwide as of mid-April. Xu Hao, CEO of Pinguo, told Beijing Review that the government helped the company a lot when it moved to the Tianfu Software Park in 2010.

"Back then, we didn't have any venture capital. The government offered us offices, desks and chairs. Later, when venture capitalists came to Chengdu to look for projects, the government introduced them to us," said Xu.

Wang Yuehua, Director of Damco Customer Service Center in Chengdu, told Beijing Review that the Chengdu Government didn't simply go away once the center was established but pays close attention to the needs of companies through regular consultation.

"Every quarter, I am invited to a meeting presided by the city mayor to express company concerns. One time, I complained that buses passing by the Tianfu Software Park, where Damco is located, were too few. The problem was solved within days," she said. "When I complained that the traffic lights near my company were broken, the mayor sent out an inspection team to check all the traffic lights in the city. It's the transparent working procedures and the quick response of the government that makes the city valued by global companies."

IPR protection

When it comes to encouraging innovation in the hi-tech sector and attracting multinationals, the city's emphasis on protecting intellectual property rights (IPRs) has been highly valued.

In 2012, Chengdu carried out 270 special inspections on copyright protection. Law enforcement officials shut down 127 illegally operating institutes and eight underground businesses, handled 21 IPR infringement cases and destroyed over 650,000 illegal publications and productions.

Ding Xiaobin, Vice Director General of the Intellectual Property Right Bureau of Chengdu, told Beijing Review that Chengdu's efforts in IPR protection are illustrated in its attempts to create regulations in accordance with international rules and raising awareness of copyright infringement.

The city had 32,563 patents in 2012, the highest number in China's central and western regions.

"Nearly 40 percent of those patents are related to hi-tech industry," said Ding, adding that the city rolled out many incentive policies to encourage technology innovation as well as protect intellectual property in order to get ideas and products out to the market faster.

Chengdu also offers office rental subsidies, tax breaks and industrial support to companies in the hi-tech sector.

"We formulated an incentive system to encourage companies to shift away from the traditional industries of the last three decades to a more high-end focus," said Ding. "For instance, we offer subsidies to companies that have established labs in cooperation with universities. Also, if companies have invented strategic and key new products, we will reward them 1 million ($163,200) and 200,000 yuan ($32,640), respectively. We have an evaluation center to assess those products according to the future market potential of those products. "

Ding said that Chengdu has made strides in turning its academic strength into productivity.