[MUSIC] Let's look at another case study. Here, the one of entrepreneurs coming back and setting up shop in China, and many of them work very closely with municipal governments. Now, here initially, the national-level government started to encourage this program by establishing high-tech zones in cities all around China and this eased the reentry for people from overseas because they could get all kinds of services from within those zones. The also increased the legal protection for entrepreneurs by in shrining the private sector in the Chinese constitution. The parties role in attracting entrepreneurs increased with the thousand talents program and the ministries of science, personnel, education, state bureau for foreign experts, they were all involved initially in this high tech zone policy. A document that they published called test points on building a model enterprise zone for overseas students. And 21 test sites were established. I mentioned before but setting up these kind of tests sites so if they fail they don't affect the whole country. And soon there were five more documents and a whole bunch of test points and today the organization department in cities and provinces all around the country run annual meetings. To promote innovative firms that are run by returnees and I participated in one of these conferences in Shenzhen. Now, these oversees returnees enterprise parks got off to a big start with Shanghai municipality, building four centers for return scholars in the cities for development zones. And by 1994, I guess even before the state science and technology commission had come out with its public policy, Shanghai had already tracked it over 100 return PhDs to one of the zones in its city. These parks were established, one in Sujo. So the cities are actually, even before there is a national directive telling them to go out and do this. These cities are already looking for opportunities to attract people back. And so, between 2000, in June 2001, 21 model Overseas Returnees Enterprise Parks were established around the country, and by 2012, China had set up more than 160 Returnees Enterprise Parks with over 8,000 enterprises and over 20,000 returnees working there. Now, the competition, again, very intense. Soon after Tiananmen, June 1989, Shenzhen started to bring people back, giving them all kinds of incentives. As I mentioned, smaller cities like Weihai were also competing for this talent. Weihai is a city on the Shandong Peninsula. Near South Korea, they started to compete. And then, Shanghai's overseas affairs, overseas Chinese Affairs Office, they started to strengthen ties with overseas Chinese, through universities, overseas, alumni associations from the Shanghai Universities. And they used this network to try and encourage people to come back. And Shanghai was the first city to give Returnees who had a foreign passport, foreign citizenship, to give them a long term residence visa. And recently they even introduced 21 new points for returnees and expatriates. Now, as I've mentioned before, this inter city competition is driven largely by the desire for local officials to get promoted and to drive their GDP. And so, for example, I visited the city of Wuxi which is just a little bit west of Shanghai. And they have a plan called the 530 plan which was the most generous program in China. And the city government became 50% partner for any enterprise that was willing to move to the city which is a great opportunity. Still, a survey that we did in 2004, showed that while many Returnees need a local government's help to get through China's difficult business milieu, they really resented some of these offices. And so, we have this table here that show's how they rated these different offices. How Returnees and locals rated those different offices. And the mean score would be 2.5. So a score of 3.1 means that you don't like the office so much. And so, here, you can see that the Returnee's particularly didn't like the personnel department. They weren't so keen on the new high end technology office. They didn't like having to deal with the Foreign Exchange Office compared to the locals. They also were not so keen on the local party secretary and they didn't like the municipal government secretary, where they would have to go and get a series amount of chops done to be able to carry out their business.
