Throughout the globe the university science/research/technology parks (from now, university science parks USPs), are considered as a main factor of the nation-wide innovative system of different countries. Recently, a significant escalation has been witnessed in private and public investment in property based institutes that assist transfer of technology, like incubators   . According to  , the Science Parks (SPs) are a regional revolutionary system which leads together the public services, R & D institutions, and firms. It’s a process which assimilates innovation resources comprising knowledge, man power and various other aspects in order to create a “virtual” spot for innovative clusters and physical spots  . Figure 1 presents an overview of four important pillars for a SP. 1) Location plays a vital role in the success of any SP and in China majority of SPs were situated in the east side where they have an excess of HEIs, inventive resources and talented people. 2) Next comes the real demand from the tenants, who you are going to help, small or a big enterprise, production or R & D enterprise, on a certain enterprise or many enterprises, international or a local enterprise. The demand varies by location, time and size of the tenants. 3) The government plays a substantial role in the resource management like, policy making and guide lining. HEIs were also rich in innovative resources. 4) Service is the main soul and core competitive of the SP; find the best people to do it.
Stanford Research Park was the first SP in the world that was established in 1951. After that, in 1952 and 1959, Cornell Business and Technology Park and Research Triangle Park were established . In US, from 1970 to early 1980s the figure of SPs raised dynamically, because of the reduction of investing in industrial R & D and rise in stipulation of Higher Educational Institutes (HEIs)-firm .  suggested that USP has performed an integral part as ‘‘a mechanism for the transfer of academic research findings, as a source of knowledge spillovers, and as a catalyst for national and regional economic growth.’’
According to  as developed nations have already witnessed the progress, initiation and matureness of high-tech SPs, developing nations also comprehended the important part of SPs in overall promotion of regional economic development and global competitiveness. As the best leading developing economy, China has commenced considerable efforts to establish and expand the SPs to inspire innovation and transfer of technology since 1980’s . In order to encourage and assist the local governments in establishing the high-tech SPs, China initiated the Torch Program in 1988 . Around 105 national high-tech SPs were established nationwide in China by the end of 2012 . In 1990s, a USP program was initiated by China after recognizing the key role of HEIs in the nation’s innovative system . This program has turn into the HEIs platforms for preparing inventive talents, commercializing intellectual research, and raising pioneering start-ups. China in 2012, had launched 86 national level USPs nation-wide, among which utmost prominent one is the Tsinghua University Science Park (TusPark) which is associated with the Tsinghua University, an esteemed and prominent university in Beijing with a status of ‘‘China’s MIT’’ .
Different case studies on the history of main SPs in the developed nations have been conducted by the researchers comprising the California’s Silicon Valley and Massachusetts’s Route 128  the North Carolina’s Research-Triangle Park  the UK’s SPs . Various scholars have also examined the importance of SPs in developing nations, including India’s biotech parks and software
parks  , Brazil’s biotechnology SPs  , and the Taiwan’s Hsinchu SP . Similarly,  normally studied STPs in China, the institutional development of Zhongguancun (ZGC) SP was analyzed by  which is most renowned SP of China with a status of ‘‘China’s Silicon-Valley’’.  linked the university and national innovative systems in Shenzhen and Beijing.  reviewed the transfer of technology strategy centered on the Wuhan’s case.  studied the commercialization of research, national university-firm relation and innovative system centered on the Shanghai’s case.
The China’s USPs development track is dissimilar from that of the Western states. China has many public universities, that are excessively sponsored by government, also, the universities there are permitted to hold university associated firms. As an output, a USP is a best station to discover the linkage of government, university and firms in China. In 1994, since after its creation the TusPark has raised into a prime and utmost dominant USP of China. The functional development & progress and also the challenges and strengths of TusPark were studied in this paper. In second section, the USPs in China: arrival and rise was discussed. In third section, the industry growth plans of Tsinghua University’s S & T were over viewed. In fourth section, the enterprise formation and development of TusPark was introduced and the fifth section investigates TusPark’s various strengths and challenges, accompanied by the conclusion.
2. Literature Review
The USPs in China: Arrival & Rise
China in start of 1980s, started to turn its prior strategy aimed S & T to the market aimed one. In the meantime, a nation-wide innovative system was tested by China in order to fulfill the market economy’s demand. The innovative actions of the nation were encouraged by the government under the market oriented mechanism by means of launching the S & T market and making reforms in research grant methods. The government’s main focus was to expand the HEIs grant sources. The 3rd China’s National Higher Education Conference, in 1988, assisted the staff and faculty of the HEIs to encourage enterprises via S & T contracts, consultation, licensing of patents and launching joint R & D centers. So, under this condition, the HEIs improved associations with the enterprises to diversify grant sources  .
The industry too had durable inducements to collaborate with HEIs. Over the period of organized economy, R & D investment of industry has been very squat. As an outcome, a confront of very squat innovative volume was usually faced by the industry. Under market aimed economy, industry desired for S & T innovations to boost their effectiveness; they strive to invest HEIs to deliver innovative S & T facilities for market. The part of research grants from various enterprises escalated further, with more growth of market economy. The industrial-enterprises have turned into the major grant source of HEIs, in 1990s   .
The staff and faculty of HEIs were also encouraged to create HEIs-associated firms for transfer of technology, to commercialize intellectual research, and intensify the association with industry. Numerous renowned Chinese firms are emerged from HEIs-associated firms, like in 1984, Lenovo, a prominent computer manufacturer around the globe, raised from the China Academy of Sciences (CAS) associated firm .
Several HEIs started to launch SPs to nurture inventive start-ups, entertain HEIs-associated firms, and to commercialize R & D, as the HEI-firm relation became robust. For HEIs, industry, and local governments the USP is a success and productive, the HEIs appreciate such privileged strategies as property and tax rent immunity, R & D resources of governments operate universities to sponsor county economies, whereas firms brand the maximum of HEI’s R & D dimension and innovative talents to expand marketplace effectiveness and competitiveness .
The first USP of China-Northeastern USP, was founded in 1989, yet earlier the government introduced the USP plan nationally. USPs flourished in 1990s and presently, large number of national-level USPs are spread in various municipalities or provinces within the country. According to  , USPs can affect in ‘‘both the knowledge- and employment-base spillover.’’ In China, the spillover effect is remarkable. On average, in 2010 every national-level USPs accommodated over 100 start-ups or firms, produced 658 million Yuan in revenue, and offered 3800 jobs. In 2015, the annual turnover of 145 national-level USPs was around 28.3 trillion RMB and overall Industrial Production value of 20.5 trillion. In the mid of 2017 the number of USPs has raised to 156 .
3. The Industry Growth Plans of Tsinghua University’s S & T
After the foundation of Tsinghua University, in 1911, with the assistance of the government of US, it has now flourished to a leading China’s university and a prominent spot in academic R & D and in innovative technology industry. Tsinghua University progressively established an intricate transfer of technology structure, comprising 3 transfer of technology executive departments and various other administrative organizations . Figure 2 presents an overview of the Tsinghua University transfer of technology structure. 1). The S & T Development Department is the overall administrative office mostly in charge of directing S & T collaboration among the university and other various organizations and handling the S & T agreements based on the R & D accomplishments of the university. 2). University-Industry Cooperation Department offer facilities to the enterprises by firming cooperation among university and industry. 3). International Technology Transfer Center (ITTC) supports local enterprises to discover S & T they require in overseas nations and also offer services for launching foreign S & T or products into the markets of China.
According to  by grasping the Western knowledges and experiences, the Tsinghua practices fruitful entrepreneurial management to expedite TusPark structure empirical competitive benefits. The entrepreneurial management of Tsinghua’s is assimilating in a sequence of plans for industrial growth of S & T in respective phase.
A ‘‘Technology plus Products’’ approach was operated by Tsinghua to encourage the industrial growth of S & T, from 1980s to 1990s . The record of university-associated firms of Tsinghua can be tracked earlier in 1922, when Tsinghua initiated to launch printing houses, internship companies, and further service directed afﬁliated firms. A Tsinghua Technology Service Company was launched the Tsinghua University in 1980, which aimed on software R & D and data investigative studies for corporations of developed nations. Since the reform & open period, it has stood as one of ﬁrst university-associated firm. After that, university-associated firms switched to utilize proﬁt-aimed plans. When the structure of research grant was decentralized, the researchers and departments were motivated by Tsinghua to launch corporations for technology transfer. The Tsinghua Technology Development General Company (TTDGC) was launched by Tsinghua, in 1988, to direct its associated firms. In 1990s, because of sound academic position, Tsinghua founded additional firms than its colleagues, Tsinghua retained over 190 associated firms., however, majority of firms in this phase only concentrated on commercializing their R & D and products  .
A ‘‘Technology plus Capital’’ approach was operated by Tsinghua to progress the industrial growth of S & T, from 1990s to mid of 1990s. The figure of university-associated firms of Tsinghua, since 1990s, climbed and the magnitude grown abruptly. To manage administration simpler, Tsinghua merged small firms, to reduce the risks and to ﬁnance associated firm’s innovation by gaining investment from the stock-market. The Tsinghua, in 1997, combined specific associated firms concentrating on technology of environment to Tsinghua Tongfang, that was recorded on the Stock-Exchange of Shanghai. The TTGDC was renamed to Tsinghua UNIS (Tsinghua Ziguang) by Tsinghua, in 1999, that was recorded on the Stock Exchange of Shenzhen. Under Tsinghua University, 2 other firms, Ziguang Guhan & Chengzhi Gufen, were also recorded on the Stock-Exchange of Shenzhen. The investment from the stock-market efficiently encouraged the inventive dimension of S & T industry of Tsinghua .
A ‘‘Capital Plus Euity’’ approach was operated by Tsinghua in mid of 2000s. To operate the university-associated firms of Tsinghua, in 2003, a Tsinghua Holding Company was launched. The Tsinghua Holding Company, in 2003, shared 66 companies and operated 32 companies. Following this restructuring of firms, Tsinghua Holding Company turn into further determined in the capital-market, not just by fundraising, although by controlling, merging and sharing other firms. Because of these policies, Tsinghua University fruitfully increased its grant sources  . The Tsinghua Holding Company in 2006, placed 154th in top 500 organizations list of China. In 2017, among the list of top 500 Enterprises in China, Tsinghua Holding Company ranks 163th, catching profits of above 95.6 Billion Yuan and ranked 30 positions upper on the list that year and also the company holds 7th position among top 100 organizations whose R & D costs-revenue proportion is comparatively higher.
4. TusPark: Enterprise Formation and Development
The journey of Tsinghua’ entrepreneurship & innovation began in 1994, when it launched the TusPark, the biggest USP around the globe. Captivating “Clustering innovation” as the progress philosophy and the “Congregation, Polymerization, Focalization and Achievement” as the progress design, it has unified numerous pioneering resources from “government, industry, university, research, finance, intermediaries, trade and media” as shown in Figure 3, to produce a distinct eco-system of outstanding S & T invention and entrepreneurship atmosphere and offer broad value-added facility to the pioneering high-tech firms. The main objective was to improve campus physical arrangement, instead on sponsoring innovation and stimulating county’s economy. Luckily, when the administrative team visited a few SPs in developed economies, the Tsinghua predicted TusPark to grow into a factor that will brand its personal influence on the nation-wide innovative system. The Tsinghua University, in 2000, started to foster TusPark, in 2006, 690,000 square meters ﬂoor areas building got completed inside a 15-hectare portion directly bordering to the Tsinghua campus   .
4.1. Enterprise Formation
1) Renowned Enterprises: According to  an enterprise along with high-tech research has a greater possibility to be attracted to join a SP because of its spillover interest to further tenants. To foster brand repute, progress inventive atmosphere and appeal further enterprises, TusPark also uses the tactic of welcoming renowned enterprises. This tactic not only ease TusPark and its tenants, although ease Tsinghua University and renowned enterprises. The academic resource of Tsinghua can be accessed by enterprises to renovate various technologies to regulate the Chinese market; Advantage of joint laboratories can be gained by the Tsinghua University to enlarge research grants and generate additional job openings for students and increase educational means for the courses recommended by enterprises. TusPark is the hub of major renowned enterprises, comprising a few global leaders in S & T like Google, Sun Microsystem, Schlumberger, P & G and NEC and some national renowned enterprises.
2) HEIs-run enterprises: By the experience gained from the SPs of Western economies reveals enterprises with the university affiliation have grownup healthier than individuals lacking the university affiliation. The HEIs run enterprises in TusPark, can gain HEI backing and can become the main ingredient of the inventive system. Furthermore, TusPark has presented an operative platform for HEIs run . Table 1 presents an overview of rankings of the top eight out of hundred own 89% of total assets HEIs-run enterprises.
3) Platform for start-ups: TusPark provided a platform for start-ups in the business incubator; a method for hatching the development and progress of small size start-ups in the SP . As a first China’s incubator, TsuPark incubator, has utilized various tactics to encourage the inventions of start-ups.  suggests that in the course of incubation network is a main factor and high-tech firms have effective networks as compare to low inventive firms. To progress relation among the Tsinghua University, government sector and mass-media, TusPark also encouraged the start-ups. The networks enable start-ups admittance intangible-resources that are valuable for their inventive
Table 1. Ranking of HEIs-run enterprises.
actions. Additionally, tangible resources are also provided by TusPark supporting for start-ups. For insistence, TusPark practices a public S & T platform to enhance the innovative atmosphere. For individual small start-ups which can’t bear costly equipment’s, they can lease it from the public S & T platform. The public S & T platform enhances the usage of a few costly equipment, some of that come from the Tsinghua University, and reduces initial investment of new start-ups’. Furthermore, TusPark uses the ‘‘Venture Capital plus Incubator’’ pattern to assist small start-ups overwhelm the limitations of grants. A diverse ﬁnance and investment facility system has been established by TusPark. More than 10 venture organizations were there in TusPark, by 2011, handling around 2.6 billion US $ and feeding start-ups about 70 million US $ venture investment  . Tsinghua industries, by the end of June 2017, has 71 STPs, 128 incubators, 7 Innovation-streets and 14 entrepreneurships-communities, situated in around 70 different regions across the nation. Around 6000 start-ups have been incubated by these platforms, almost 40 of that have been registered public ally, containing ChineseAll, Sumavision and Highlander Digital Technology.
4.2. The Branch Development of TusPark
As TusPark is situated in an extremely posh and developed zone so, it’s quite demanding to develop its production and R & D activities inside the surrounding zone. To handle this position, TusPark used a diffusion tactic to grip the spatial restrictions, via launching branches in different areas. Currently, TusPark have launched over 30 branches throughout the China .
To drag growth of regional economy, native governments are encouraged by the aspiration to form a corporation with Tsinghua, by presenting TusPark such privileged plans as tax exempt and property allocation. Similarly, TusPark can merge S & T commercialization with native industry benefits. For example, TusPark launched a branch in Jiangshu, Kunshan in 2009, where has remarkably robust economic dimension and industry group. A benefit of cost compensations and agglomeration effects of Kunshan can be grasped by TusPark which are not present in the Beijing. Moreover, a few branches situated in the boundaries of hierarchical-political structure with additional ﬂexible and independent entrepreneur atmosphere than Beijing .
Global expansion and development strategies are also applied by TusPark. TusPark, in 2012, collaborated with three other companies to launch the InnoSpring, first ever China-US S & T start-up-incubator, in Silicon Valley. In the US, for start-ups, InnoSpring offer services, like team structuring and approach to venture-capital. With a motto of ‘‘Start in Silicon-Valley, grow in the China and US’’, InnoSpring fortifies TusPark Silicon Valley relation and supports start-ups develop globally . In Feb 2015, TusPark (Hong Kong) was formally finalized, marking a significant phase in the expansion and development of TusPark internationalization, also, showing TusPark’s belief in Hong Kong's swift growth of inventive entrepreneurship-eco-system . In 2015, TusPark signed an agreement with the National University of Sciences and Technology (NUST), Pakistan for establishing a counselling platform for creation, development and administration of the National STP, the first ever university hosted STP of Pakistan, being launched at NUST . TusPark will establishes an Overseas SP in the Cambridge, UK, an agreement has been signed between TusPark and Cambridge SP in July 2018 .
5. TusPark: Various Strengths & Challenges
5.1. TusPark’s Strengths
1) Location Propinquity:  suggests that the propinquity of the SP to the university can produce numerous spillover advantages, like gaining extramural grants, improving curriculum and generating more job openings for students. As TusPark is next to Tsinghua University, both can exploit the propinquity benefit. It is suitable for both to exchange info and work jointly. Similarly, the TusPark is in the propinquity to China’s utmost influential universities and R & D institutions, comprising the Peking University (PKU) and the China Academy of Sciences (CAS). Additionally, TusPark is also situated in the central area of Beijing’s-high-tech sector, ZGC is its southern neighbor and PKU SP is its western neighbor. Current study also defines that enterprises inside geographically propinquity have advanced level of academic spillover and innovative activities, since propinquity ease causal inter-personal-ties, that can be changed into official inter-organization-ties, and hence encourage mutual innovation. TusPark also owns a expertise labor team and dealer’s networks evolving from its location propinquity .
2) Support of the Government: As maximum China’s universities are public; the government support is significant for universities and USPs. As a leading China’s university, Tsinghua possesses a lot of the government sources and networks. Tsinghua is known as ‘‘a cradle of the Chinese government leaders’’, in that several top positioned government executives have graduated from the Tsinghuaou. As the TusPark was launched, the government declared that TusPark is a portion of the ZGC high-tech SP, that can experience numerous privileged strategies. This initiative also eases TusPark to join the well-known network among the government and ZGC. The government prolonged its provisions to TusPark directly, various native government agencies have assured to present exclusive assistance to TusPark. Moreover, TusPark has many chances to contribute in S & T policy creation. The government commends TusPark to gather main information, deliver advice to the government, and analyse the success of policy execution. Throughout this course, TusPark can experience policy predilection. Generally, a solid government backing provides relative rewards against different other SPs .
3) Entrepreneur Values & Culture: According to  native values & culture played a significant part in encouraging inventive activities. In early 1998, ﬁrst ever China’s entrepreneurial project competition was launched by the Tsinghua University. This competition offered students a worthy chance to exercise inventive activities, comprising internship, specialized training and to communicate with entrepreneurs of TusPark. Similarly, Tsinghua University and a few renowned firms in TusPark, like Microsoft and Google, had presented numerous entrepreneurship and innovation courses for the students of Tsinghua. Tsinghua also started efforts to boost entrepreneurial and innovation research. An institution for an innovation research; TusPark Research Center for Innovation (TRCI), was launched with the cooperation of the government agencies and Tsinghua, in 2007. The goal of TRCI is to offer entrepreneurship and innovation research facilities for firms in TusPark and around the country. TRCI has a robust network in industry, academia and the government. Firms in TusPark can exploit TRCI to advance their inventive dimensions and increase networks. Tsinghua University and Tsinghua Holdings Co Ltd have established a channel “China Institute of Entrepreneurship.”, on its Massive Open Online Courses (MOOC) stage to provide good quality online guidance and training facilities on creativity entrepreneurship and innovation . Table 2 presents an overview of some of the key innovative achievements of Tsinghua from 2016 to March 2018.
Table 2. Some key innovative achievements of Tsinghua from 2016 to March 2018.
Source: Compiled by the author from http://thholding.com.cn.
4) The Alumni Network of Tsinghua: The SPs must perform a role in nurturing firms to get social investment required to assit entrepreneurial and networking development . Inside TusPark, firms are motivated to exploit the resources from the alumni network of Tsinghua. As China’s utmost distinguished alumni consortium, Tsinghua alumni consortium links over 80% of Tsinghua former students. The alumni net is not limited inside China, but is distributed throughout the globe. Many Tsinghua graduates, each year, go in foreign states in hunt of advanced and higher degrees, for example, in 2006, bachelor’s degree holders of Tsinghua received further engineering or natural science doctorate degrees at US institutions than various other universities globally . Numerous foreign trained alumni of Tsinghua continue to perform their duties and work abroad. Up till now, nearly 20,000 alumni were staying abroad, generally in North America, and almost 50% of them work and live in Silicon Valley. Approximately 50 alumni associations of Tsinghua have been formed in across 10 nations. In the global socioeconomic development, alumni of Tsinghua have contributed a lot with their knowledge and strengths in different industries and fields. Between them are prize-winning fellows of professors, academies, also founders of foreign registered firms and leaders of international companies.
5.2. TusPark Challenges
1) R & D Capacity Challenge: 1) TusPark has a few renowned R & D creations, however, requires further outstanding, homemade products. Numerous R & D events in TusPark are still in phase of internalizing S & T of a few world-wide renowned firms. Similarly, in current era, the universities confront more crucial competition as firm’s R & D capacities have improved sharply. As an outcome, firms depend less on the universities; it puts a negative impact on university’s innovative capacity. 2) This challenge has also impacted negatively on TusaParks globalization level. Because to TusPark’s lack of innovative potential, the interaction among TusPark and other different renowned SPs, like Silicon Valley is a type of one-way, instead of two-way collaboration. A few renowned firms joined TusPark for the China’s market prospective and employee talents, however, extra core S & Ts were not launched from TusPark. Developed SPs, like the Taiwan’s’ Hsinchu SP, has a vast quantity of innovations to transfer to Sillicon Valley . After this view, TusPark demands robust indigenous, valuable innovation capacity, and extra self-started products to turn out to be an essential ingredient in the international innovative chain.
2) Bureaucracy Challenge: TusPark is rooted in hierarchical form. Because of a public institute, its deeply depend on policy and ﬁnancial backing by the government; the government firmly commands the Tsinghua University, for example, the government has full influence to hire or terminate university heads, comprising the president of the university. The bureaucracy also influences firms in TusPark. For example, Google, in 2010, departed from China in fulmination of the political restriction of government. In TusPark, as one of the ﬂag-bearing firm, departing of Google adversely wedged TusPark’s attraction between global firms; this event illustrates that the government’s bureaucracy limits the mobility of inventive activities. Furthermore, TusPark was firmly controlled by the Tsinghua University. The bureaucrats of university are extremely engaged in the actions of university run firms and TusPark. University can hire, assess, and terminate the administrative board of TusPark, also can employ the faculty who was unsuccessful to gain tenancy to perform duties in TusPark. In a few situations, the professional titles of TusPark staffs was also evaluated by the university. The university’s bureaucracy reduces effectiveness of TusPark and increases its organizational budgets .
3) External Institutions Challenges: In China, as different other USPs, TusPark also faces several external institutions challenges, that are deep-rooted in the organizational, regulation and legal system. 1) The organizational system adversely influences the effectiveness of the innovative marketization. Recently, the government allots around 60% of R & D grants to the HEIs, and firmly handles the scholarly belonging rights of R & D outcomes. The R & D outcomes marketization requires approval of the authorities. However, the approval process takes a long time . Because of this delay several R & D outcomes can’t be marketized in proper time. 2) Lack of indemnity for scholarly belonging rights is also a big challenge in inventive activities. Firms, under the present legal structure, concern that the ally could plagiarize their inventions. As an outcome, they are disposed to lead an autonomous R & D activity instead of cooperating . The uncertainties of scholarly belonging rights likewise become a blockade for firms to appeal venture investment. 3) For small start-ups, a few rules have become a blockade to hire inventive talents. A typical blockade is the registration system of population (Hukou). Without the native Hukou status, people are not able to access these facilities like their children education. Because of the dense population burden, Beijing exploits the quota of Hukou to regulate the inﬂux of the university-graduates. However, majority of the Hukou quota, went to agencies of the state-owned and government firms .
Recently, there has been a considerable rise in public and private venture in USPs because they are vital as an infrastructural system for the transfer of academic R & D grants, as a foundation of knowledge spillovers, and as a reagent for nation’s and region’s economic development. Though the literature regarding to research parks and USPs is yet embryonic, the evidence advocates that parks boost the two-way transfer of knowledge among HEIs and firms. Fruitful two-way transfer of knowledge flow among HEIs and firm’s is a core factor for a nation’s inventive system, and we do have substantiation that USPs perform a vital role in that transfer of knowledge. So, parks augment novelty and afterward, competitiveness.
In the China’s national, innovative system, University Science Parks play a substantial role. After its creation, TusPark has elevated as one of the utmost prominent China’s university science parks. Various productive and efficient tactics were practiced by TusPark and the Tsinghua University to advance their science and technology trade and encourage innovative actions. Though, TusPark encounters various external and internal institutions, it has fetched its benefits into complete production and developed to the chief productive and prominent China’s university science park. The evolution flight of TusPark is exceptional; however, its skills can aid towards the interpretation of the science parks within the progressive and further developing nations in the proliferation’s framework.