General Secretary Xi Jinping pointed out that the innovation chain should be deployed around the industrial chain, and the industrial chain should be arranged around the innovation chain, so as to make greater strides in promoting high-quality economic development. At present, digital technology is permeating into the modern industrial system at a growing pace; the industrial chain and the innovation chain are intertwined, mutually supported and promoted, exerting a synergy effect. Suzhou seizes the new opportunities brought by digital economy, proceeds from construction of industrial innovation clusters to promote seamless connection between science and technology and industries, and accelerates efforts to exploring a new path for in-depth integrated development of the industrial chain and the innovation chain (the two chains).

　　I. A deep understanding about the significance of promoting deep integration of the two chains

　　It is of great significance to promote deep integration of the two chains and build a virtuous circle in which technological innovation supports industrial development while industrial development drives technological innovation. First, it is Critical to adhere to innovation-driven high-quality economic development. Promoting deep integration of the two chains is conducive to accelerating the transformation of science and technology into real productive forces, connecting science and technology with the economy, applying innovation results in industrial development, and connecting innovation projects with immediate productive forces. As thus the innovation-driven reform in quality, efficiency and driving force enhances the ability of scientific and technological innovation to support and drive high-quality economic development. Second, it is an effective means to expand the effective supply and meet the needs of high-quality life. Promoting deep integration of the two chains; and creating, adapting to and leading the effective satisfaction of demand with scientific and technological innovation and thus giving birth to new industries, new business forms and new models which help to expand effective supply and improve product and service functions, upgrade and expand consumption, enable the general public to share the achievements of technological innovation. As thus, the people’s growing needs for a better life can be better met. Third, it is a key underpinning to enhance the industrial innovation ability and build the international competitive edge. Promoting deep integration of the two chains is conducive to removing the bottlenecks in the industrial chain by relying on technological innovation, winning the tough battle against core technological difficulties, firmly grasping the lifelines of core technologies, and enhancing the controllability, safety and reliability of the industrial chain. Moreover, it is conducive to improving the value-adding capacity of all links of the industrial chain through scientific and technological innovation, enhancing the modernization level of the industrial chain and the supply chain, and pushing China’s industries to move towards the middle-to-high end of the global value chain and gain an edge  in international industrial competition.

　　II. Suzhou practice that promotes in-depth integration of the two chains by proceeding from the work on industrial innovation clusters 

　　Suzhou has thoroughly studied and implemented the essence of General Secretary Xi Jinping’s statement on innovation-driven development and especially on the deep integration of the two chains. It takes the posture of emancipating the mind, daring to be the first and leading the trend.,seizes the opportunity for development of the digital economy, implements deep integration of the two chains with Suzhou characteristics, and takes the lead in terms of the quality and vitality of the integrated development of the two chains. First, it is to strengthen the Party’s overall leadership over the construction of industrial innovation clusters through Party building. Suzhou gives full play to the role of the Party Committee in guiding the direction, commanding the overall situation and ensuring policy implementation of the industrial innovation clusters, and strengthens top-level design, general layout, coordination, overall promotion and supervision of the implementation. Second, it is to promote the integration between scientific and technological innovation and modern industries by taking enterprises as the mainstay. Suzhou attaches importance to the principal role of enterprises in technological innovation, makes a point of bringing out the leading role of innovation-oriented enterprises, promotes integrated development of large-, medium- and small-sized enterprises, and makes enterprises a vibrant force in the integration of innovation factors and the commercialization of scientific and technological advances. Third, it is to take the technology platform as the carrier to promote high concentration of industrial innovation resources. Suzhou puts a premium on bringing out the incubation function of high-level innovation carriers in innovation clusters, promotes optimal allocation of research forces and resource sharing, and guides full marketization of the value of research achievements. Fourth, it is to accelerate digital transformation of the industry by leveraging digital technology. Suzhou attaches great importance to giving play to the role of digital technology in enlarging, superimposing and multiplying industrial innovation clusters, and leveraging digital technology to enhance the momentum of industrial innovation cluster development, to build up the brand of Suzhou Industrial Internet. Fifth, it is to focus on innovation ecology and create a development environment conducive to industrial innovation and fusion. Suzhou attaches great importance to the creation of high-quality innovation ecology, and promotes the organic coordinated allocation of innovation resources and industrial factors, to foster industrial innovation and fusion. Sixth, it is to take mechanism innovation as the guarantee to solidly promote the cluster-based development of the two chains. Suzhou follows the approach of industrial innovation cluster construction, establishes and improves the promotion mechanism, stimulates the innovation vitality of all kinds of entities, to build a strong synergy resulting from multi-party participation.

　　III. Inspirations from Suzhou practice for promoting deep integration of the two chains  

　　Suzhou accurately grasps the trend and approach of the integration and development of the two chains in the era of digital economy, and has gained some understandings about the laws, which holds great significance for local governments to persist in advancing innovation-driven high-quality economic development. First, it is to deeply study and understand the important remarks of General Secretary Xi Jinping, and earnestly turn what we have learned into a powerful force to promote our work. Suzhou adheres to upholding General Secretary Xi Jinping’s important remarks to arm the mind, guide practice, and advance work, and takes looking into and solving problems as the starting point and goal of learning, so as to substantially promote the implementation of the two chains integration work. Second, it is to comprehensively and accurately grasp the law of two chains integration, and promote faster and better transformation and upgrading of industrial clusters. Suzhou deeply grasps the mutual promotion and integration of the two chains, deploys and improves the innovation chain by centering around the industrial chain, and empowers the industrial chain by centering around the innovation chain layout, so as to promote deep integration of the two chains with two-way interaction. Third, it is to promote the combination of an effective government and an efficient market to build a great synergy through the integrated development of the two chains. Suzhou recognizes that the agglomeration of innovation factors should be more than physical agglomeration since more importantly, it is necessary to create an open, inclusive and coordinated ecological environment in which all kinds of innovation factors have chemical reactions. This requires that we should better bring into play the role of an effective government. Fourth, it is to coordinate independent innovation and open innovation, and promote the integrated development of two chains at a higher starting point. Suzhou realizes that the higher the degree of openness among the elements of an innovation cluster, the better the quality of the cluster. It is important to make full use of both domestic and international markets and resources, organically combine independent innovation with open innovation, and promote deep integration of science and technology with economy in open cooperation. Fifth, it is to carry forward the entrepreneurial spirit and better play the principal role of enterprises in the integrated development of the two chains. Suzhou attaches great importance to stimulating and protecting the entrepreneurial spirit, especially the entrepreneurial spirit of innovation, continuously improves the market-oriented and law-based international business environment, builds close and clean government-business ties, speeds up the cultivation of innovation-driven leading enterprises, and vigorously endeavors to create a culture that encourages innovation and tolerates failure.

　　By Xi Jinping Thought on Economy Study Center