In the Chinese zodiac, the snake is also known as the "little dragon." In this Year of the Snake, Hangzhou, which has nurtured six "technological innovation dragons," stands in the spotlight.

Game Science, behind "Black Myth: Wukong," the robot dancing yangko at the Spring Festival Gala, and the viral success of DeepSeek, all hail from Hangzhou, alongside CloudMinds, BrainCo, and Lumion. While these "six little dragons" have all grown up in Hangzhou...

Despite numerous articles on Hangzhou and its related companies circulating on the internet recently, the author's recent visits and observations of these enterprises in Hangzhou have revealed that, much like "dragons giving birth to nine sons, each different," the "little dragons" also possess unique qualities: In Unitree Robotics' laboratory, Wang Yangming's calligraphy of "unity of knowledge and action" sits alongside the metal skeleton of a quadruped robot; BrainCo displays an Iron Man statue at its entrance, embodying its corporate vision of "human-machine integration"; DeepSeek, which has made a big splash internationally, resides low-key in a building where financial institutions gather, with its logo hard to find; Game Science is located in the Art and Creation Town, far from the downtown area, with lush green grass outdoors, like a haven of tranquility...

Why have the "six little dragons" clustered in Hangzhou? This has become the "Question of Hangzhou" that other big cities are seeking answers to.

Cultivating Business Growth and Embracing Failure

Guangdong, once a pioneer in technological innovation, was the first to ask why AI pioneers like Liang Wenfeng hailed from Guangdong but ultimately settled in Hangzhou. Nanjing then inquired why, despite having excellent resources like universities, it couldn't develop its own "Hangzhou six little dragons."

Interestingly, as early as 2008, Shanghai's leaders reflected on why Shanghai didn't produce Ma Yun: "One day, I met Alibaba's boss Ma Yun, and he told me that Alibaba started in Shanghai but later returned to Hangzhou. I feel quite regretful for losing such a giant enterprise developed from a small one."

As a native of Hangzhou, Ma Yun once answered somewhat proudly from afar: "Alibaba's headquarters is located in Hangzhou because Hangzhou has an entrepreneurial spirit, embraces the development of private enterprises, and attracts a large number of outstanding talents."

The entrepreneurial spirit mentioned by Ma Yun is rooted in historical accumulation.

"The southeast is a land of beauty, the heart of the Three Wu regions, and Qiantang has been prosperous since ancient times." Hangzhou has been fertile ground for commerce and innovation since ancient times. During the Southern Song Dynasty, the idea that "scholars, farmers, workers, and merchants are all essential occupations" laid the foundation for Hangzhou's mercantile culture; the Wuyue Kingdom's policy of "preserving the border and ensuring the people's livelihood" promoted water conservancy construction and overseas exchanges, forming an open and inclusive urban character.

Zhejiang has always upheld the tradition of "storing wealth among the people," with Hangzhou leading the way. As a city that pioneered the development of the private economy, the private sector is the "backbone" of Hangzhou. The added value of Hangzhou's private economy accounts for over 60% of its GDP, and it has topped the list of Chinese private enterprises for 21 consecutive years. This has also profoundly influenced Hangzhou's investment ecosystem. Private investment in Hangzhou has long accounted for more than half of the total fixed asset investment, and the shadow of local institutions can always be seen behind the unicorn enterprises born in Hangzhou.

Hangzhou's "six little dragons" may seem to have emerged out of nowhere, but these startups with a private economy background have all undergone years of dedicated growth, accompanied and supported by the city's entrepreneurial atmosphere.

In 2018, a delegation from Hangzhou contacted Han Bicheng, the founder of BrainCo, in Boston, USA, and invited him to Hangzhou. Four years later, BrainCo achieved mass production of 100,000 units of the world's first portable high-precision brain-computer interface product. The Hangzhou government also provided the company with a series of sincere services, such as R&D and industrialization space required for its headquarters to settle down, which has propelled BrainCo to gradually become a globally renowned brain-computer interface company.

Game Science, the company behind the game "Black Myth: Wukong," was founded by Feng Ji, who previously worked at Tencent in Shenzhen. When asked about the reason for moving his company team to Hangzhou, he bluntly said, "I like the atmosphere in Hangzhou. The pace is not as fast as in Shenzhen, and the housing prices are not too high. You can afford to be patient." And in the year the company was established, the Art and Creation Town in Hangzhou where it is located issued a policy to provide a maximum of 100% rent subsidy or exemption for three years to digital content enterprises such as game companies.

Similar to Feng Ji, Wang Xingxing, the founder of Unitree Robotics, also resigned from DJI, a company in Shenzhen, and then came to Hangzhou to start his own business. In the early stages of Unitree Robotics' entrepreneurship, it received support from Hangzhou's "Eagle Plan." When it exhausted its funding but still hadn't delivered its products, Hangzhou stepped forward again, and a round of financing with a state-owned background solved the urgent problem.

As models of successful entrepreneurship, the "six little dragons" have also faced their respective challenges. Saying that Hangzhou has a good entrepreneurial atmosphere is not just because of the venture capital funds here; more crucially, it is the cultural gene of encouraging trial and error and embracing failure. In various policies issued by Zhejiang Province and the city of Hangzhou, a clause of "due diligence and exemption from responsibility" is often specifically listed. For example, in the "Administrative Measures for the Industrial Fund of Qiantang District, Hangzhou," Article 22 establishes and improves a due diligence and exemption mechanism, clarifying that for investment behaviors in which duties have been performed, if risks occur and investment losses are incurred, the relevant units do not bear related responsibilities.

A place that allows failure can better nurture success.

The Government Proactively Serves like a "Corporate Assistant"

Cities need talent and enterprises to develop industries, and enterprises and talent also need assistance from government personnel, which is particularly evident in Hangzhou.

Regarding Hangzhou's business environment, there has always been the saying that "the government is responsible for sunshine and rain, and enterprises are responsible for thriving." After Zhejiang launched the "Run at Most Once" reform in 2016, the time required to start a business was reduced from 22 days to 3 days, and administrative approval items were reduced by 68%. The 2023 World Bank Doing Business Report shows that Hangzhou ranks 12th globally in contract enforcement efficiency, surpassing San Francisco, where Silicon Valley is located, which ranks 19th. Zhejiang and Hangzhou have gradually become the provinces and cities with the best business environment in the minds of many entrepreneurs.

Recently, a screenshot of a WeChat Moments post evaluating Hangzhou's business environment has been circulating on the internet, which reads: "If Hangzhou is not successful, then there is no justice." The article mentions that "during the entire process of the company's settlement and subsidy application, we didn't have a single meal, didn't drink a single drink, and didn't give a single cigarette" and "the government subsidies promised to you will be automatically transferred at the agreed time, without you having to ask again, urge again, or invite them to dinner." "After the matter is done, the personnel from the government department disappear and never bother the enterprise or give unsolicited advice."

Among the "six little dragons," Game Science is an "outsider." After the team moved to Hangzhou, housing was the primary issue. After learning about the housing needs of the enterprise employees, the service specialists of the local park took the initiative to contact and communicate with them, helping them coordinate a batch of single apartments and resettlement housing resources, solving this problem in a short period of time. Moreover, these services were resolved through online contact, which was both efficient and convenient.

During the author's visit to CloudMinds, it was learned that during the research and development of the "Jueying" series of robots, the Hangzhou government assisted in providing a complete experimental venue, allowing the enterprise to conduct a large number of inspection function verifications, such as field function testing of robotic dogs. Additionally, the Hangzhou government upholds the concept of "responding to every request" for enterprise development and has established a special task force for key enterprises to respond to the needs of enterprises such as CloudMinds, allowing them to focus on research and development.

Coincidentally, when Unitree Robotics needed a testing environment, the Binjiang District government directly opened up the Asian Games venues. When DeepSeek needed training scenarios, its large model was directly connected to the city brain. The founder of an autonomous driving company in Hangzhou once mentioned online that after the government learned that they needed special road test licenses, a joint meeting of the traffic police, transportation, and urban management departments was coordinated within three days. In these cases, the Hangzhou government fully demonstrated its service mindset like a "corporate assistant," turning the entire city into a testing venue for technology companies.

Not only providing meticulous services, the Hangzhou government also uses financial subsidies to encourage technological enterprises to invest in innovation, providing subsidies of up to 20% of the newly added portion of the enterprise's R&D expenses for the year for small, medium, and micro-sized scientific and technological enterprises in the city and high-tech enterprises in the field of "advanced manufacturing and automation," with a maximum of 2 million yuan. For high-tech R&D projects that fill the gaps in China's independent industrial chain and are included in the city's major scientific and technological innovation plans, subsidies are provided at 20% of the project's R&D investment, with a maximum of 5 million yuan.

Not Only Providing Funds and Land but also a "Special Economic Zone with Institutional Advantages"

With policy guidance, a business environment, and an industrial cluster fostering a technological innovation atmosphere, Hangzhou not only boasts the "six technological innovation dragons" but also many unicorn enterprises on the brink of "gaining worldwide renown." The "2024 Global Unicorn Index" released by Hurun Research Institute shows that Hangzhou has a total of 24 unicorn enterprises, second only to Beijing, Shanghai, and Shenzhen, and tied with Guangzhou. Most of these unicorn enterprises are concentrated in the field of technology, such as Lingban Technology in the field of artificial intelligence and DreamWorks Cloud in the field of cloud computing.

Although Hangzhou is currently leading the trend of technological innovation industries, a decade ago, the "City of E-commerce" was still Hangzhou's most prominent label. How was such an industrial switch from "doing business" to "engaging in technological innovation" achieved?

With the resurgence of the importance of the manufacturing industry, Hangzhou experienced a period of decline due to its over-reliance on the e-commerce industry. Not only was its GDP once surpassed by Wuhan, but it was even overshadowed by Ningbo, the "hidden manufacturing champion" within the province. After the cooling period of the internet, Hangzhou had plans to transform into a city of technological innovation.

In 2014, Hangzhou officially launched the slogan of "building the country's leading digital economy city" and boldly stated that the government would directly subsidize 30% of enterprises' R&D expenses. Besides being generous with money, Hangzhou is also generous with land, providing low-cost land in prime locations such as the Future Science and Technology City and the Binjiang High-tech Zone to technological enterprises.

In 2016, the Hangzhou Western Science and Technology Innovation Corridor, stretching approximately 33 kilometers from the Zijingang Campus of Zhejiang University in the east to Zhejiang A&F University in the west, rose to prominence. Through separate planning at the municipal level, preferential land allocation, and relaxed assessment, this region formed an innovation matrix of "one corridor, four cities, and two wings" within just five years, gathering 46 major scientific and technological innovation platforms such as Alibaba Cloud and the Zhejiang Lab, with the added value of the core digital economy industry growing at an average annual rate of 12.3%.

This design breaks through traditional administrative barriers. For example, in terms of land resource allocation, Hangzhou implements "separate indicators" for the core area of the Science and Technology Innovation Corridor to avoid competition and consumption with other regions. In the assessment system, the weight of GDP is reduced, and innovation indicators such as R&D investment and technology transaction volume are increased. This top-down design thinking has made the Science and Technology Innovation Corridor a "depression" for factor flows and a "highland" for innovation output.

The cornerstone of technological innovation rests firmly on "science." By 2024, Hangzhou had already established one national laboratory, two major national scientific facilities, and 33 national key laboratories, fostering a comprehensive innovation ecosystem that spans from basic research to industrial applications. Crucially, the city boasts a robust mechanism for transforming these research outcomes into practical applications: The technology trading market in Hangzhou has surpassed 200 billion yuan, and it has pioneered the "concept validation center model," where the government funds the commercial validation of early-stage technologies, effectively mitigating the risk of the "valley of death" for scientific research results.

Emulating the amplification of market vitality is no easy feat.

As times evolve, industrial policies may be iterated, but the fundamental logic remains constant – to lower barriers to entrepreneurship and amplify market vitality. The answer to "The Question of Hangzhou" lies in constructing a city development model that is "market-led, government-supported, and socially inclusive."

While this approach may seem straightforward, other cities find it challenging to replicate effectively. Hangzhou's precise utilization of its policy toolbox is commendable, reflecting an innovative mindset that dares to be first. This is in stark contrast to places where loud slogans are proclaimed but ultimately lead to inaction and a return to square one. Hangzhou genuinely offers financial support, with subsidies readily available for enterprises to tap into.

As mentioned earlier, Game Science benefited from a three-year rent exemption in Xihu District during its infancy, while Unitree Robotics received financing assistance from Hangzhou when its capital chain was strained. Can this level of support be easily found in other cities?

Therefore, rather than merely envying the development and innovation of other cities, we should ask ourselves: Does your city possess the conditions to attract talent? Does it demonstrate genuine commitment to supporting enterprise development with tangible financial support?

Some cities may engage in superficial talent introduction policies, but without a conducive business environment and a supporting industrial base, these policies will fail to impress true high-tech talents. What these talents truly care about is whether the entrepreneurial soil and environment are conducive to the long-term growth of their enterprises.

Despite already nurturing six "little dragons," the Hangzhou government remains steadfast in promoting employment and supporting entrepreneurship. The city offers free accommodation for up to seven days to college students seeking jobs in Hangzhou, and the process is exceptionally convenient.

Taking Qiantang District as an example, the backend information system is seamlessly connected, allowing eligible college students to apply through the Qiantang Release APP. Applicants only need to provide their name, ID card, and phone number to directly apply for accommodation. Staff verify education information with the China Higher Education Student Information Network in the backend, eliminating the need for additional documents. Upon receiving approval, applicants can check in at the nearest hotel for seven days using a QR code.

What's more thoughtful is that, based on past experience, Qiantang District has adjusted its "free stay for seven days" policy. Applicants can now split these seven days of accommodation within one year of graduation, providing graduates with greater flexibility in planning their itineraries. Such meticulous and considerate efforts are only possible with a genuine mindset of service and commitment to getting things done.

The competition among cities for talent and industries is not a zero-sum game of "policy preferences" but an evolutionary race of ecosystems. When a city, like Hangzhou, can harmoniously unite the innovative drive of enterprises, the service-oriented awareness of the government, and the tolerant spirit of society, the "little dragon of science and innovation" will inevitably emerge and soar.