Growth through Innovation An Industrial Strategy for Shanghai By Shahid Yusuf Kaoru Nabeshima April 22nd, 2009



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III. Labor and Skills


The industrial base and Shanghai’s maturing financial and business services are important building blocks, but sustaining Shanghai’s growth over the longer term will depend upon the quality and variety of human capital, and on innovation capabilities. Shanghai’s labor market is already fairly deep and diverse. There are 9 million workers in the formal labor force supplemented by several million migrant workers who comprise Shanghai’s floating population. Over a quarter of the formal workforce in 2000, were high school graduates, and 6 percent of the workforce had earned bachelor’s degrees (see Table 5 .29). The likely cause of the small decline in the percentage of workers with high school degrees was the near doubling of Shanghai’s population between 1990 and 2000 (from 6.9 million to 12.3 million) partly as a result of the influx of less educated migrants (see Table 5 .30). The vast majority of the migrant workforce is engaged in construction, light manufacturing and assembly type activities, household services and other occupations, mostly unskilled or semi-skilled jobs. But Shanghai has also attracted significant numbers of highly skilled knowledge workers from other parts of China and overseas who fill the growing demand from Shanghai’s technology intensive activities. Close to 50,000 scientists and engineers are employed at large and medium manufacturing enterprises in Shanghai of which 47,000 are in the machinery and the materials processing industries (see Table 5 .31). One quarter of these S&E workers are employed in the electronics industry (including communication equipment and computer hardware). This capacity to attract knowledge workers is a tremendous asset (as is for London and New York) and must be enhanced by further augmenting the vitality and distinctiveness of the city and the convenience of living there.
Table 5.29: Educational level of population as a % of reference population

This degree or above



1990

2000

1990

2000

1990

2000

Shanghai

Shanghai

China

China

United States

United States

High School

30.1

27.1

11.4

12.0

75.2

80.4

Some college













45.2

51.8

College-level associate degree

5.6

7.1

1.2

2.5







Bachelor's degree

5.8

6.2

0.8

1.2

20.3

24.4

Advanced degree

n.a.

0.6

n.a.

0.1

7.2

8.9

Note: Reference population is aged 6 and over for Shanghai and China, and aged 25 or higher for United States.

Source: Shanghai and China Census data various years; United States data is from Table4 of Holz (2008)


Table 5.30: Educational level of population, Number in millions

This degree or above



1990

2000

1990

2000

1990

2000

Shanghai

Shanghai

China

China

United States

United States

High School

2.1

3.3

89.9

138.3

119.5

146.5

Some college













71.8

94.4

College-level associate degree

0.4

0.9

9.6

29.0







Bachelor's degree

0.4

0.8

6.1

14.2

32.3

44.5

Advanced degree

n.a.

0.1

n.a.

0.9

11.4

16.2

Total population

6.9

12.3

789.2

1156.7

158.9

182.2

Note: Reference population is aged 6 and over for Shanghai and China, and aged 25 or higher for United States.

Source: Shanghai and China Census data various years; United States data is from Table4 of Holz (2008)


Table 5.31: Personnel of Industrial Enterprises, 2005 (Scientists and Engineers)




persons

Manufacture Industry

49,795

Communications Equipments, Computer and Other Electronic Equipment Manufacturing

12,393

Transportation Equipment Manufacturing

6,993

General Equipment Manufacturing

5,686

Electric Machinery Equipments and Manufacturing

3,836

Smelting and Pressing of Ferrous Metals

3,668

Special Purpose Equipment Manufacturing

3,002

Raw Chemical Materials and Chemical

2,962

Instruments, Meters, Culture and Office Equipments Manufacturing

2,197

Medicine Manufacturing

2,146

Oil Processing, Coking and Nuclear

1,472

Nonmetal Mineral Products

680

Metal Products Manufacturing

655

Printing and Record Duplicating

630

Textile

513

Plastic Products Manufacturing

482

Rubber Products Manufacturing

458

Food Manufacturing

429

Smelting and Pressing of Nonferrous Metals

395

Stationary, Education and Sports Goods Manufacturing

321

Tobacco Manufacturing

195

Artworks and Other Manufacturing

157

Furniture Manufacturing

143

Farm and Sideline Products Processing

106

Chemical Fiber Manufacturing

79

Beverage Manufacturing

63

Petroleum and Natural Gas Exploiting

54

Paper-making and Paper Products Manufacturing

38

Garments, Shoes and Accessories Manufacturing

37

Timber Processing and Timber, Bamboo, Rattan, Coir and Straw Products Manufacturing

5

Note: Data is based on firms with revenues greater than 5 million yuan.

Source: Shanghai S&T Yearbook 2007.




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