Teng Tangwei Institute of Urban Development, East China Normal University The linkage and off-site development of the development zones in the Yangtze River Delta started early in the country and achieved remarkable results. In the context of higher-quality integrated development in the Yangtze River Delta, the linkage and off-site development of the development zones in the Yangtze River Delta has entered a new stage, starting from an industrial enclave to an industrial and innovation enclave, and from close cooperation between Shanghai and Jiangsu Province to a growing connection between Shanghai and Zhejiang Province. Six new trends and new characteristics have become increasingly obvious. 1. From an industrial enclave to an innovation enclave In recent years, there have been more and more “reverse enclaves” or “two-way enclaves” in the Yangtze River Delta. That is to say, there have been many types of “innovation” enclaves involving collaboration initiated by Zhejiang and Jiangsu in Shanghai in terms of talent, science and technology, and industrial incubation. It has become an important way of interregional cooperation in the Yangtze River Delta. The first type is the reverse enclave, referring to low-gradient areas actively setting up “reverse enclaves” in high-gradient areas. For example, Jiashan County, Zhejiang Province in 2019 set up the Jiashan International Innovation Center in Shanghai, creating a Shanghai-Jiashan collaborative innovation model that “features front office in Shanghai, back office in Jiashan”, and “incubation in Shanghai, and industrialization in Jiashan.” The second type is the “two-way enclaves” between low-gradient and high-gradient areas. With the in-depth advancement of the integration strategy of the Yangtze River Delta, some cities with strong economic strengths and R&D needs have taken the initiative to create “enclaves” in Shanghai and launched a “two-way model.” For example, in 2018, Shanghai set up a “Demonstration Zone for the Deep Integration of Advanced Manufacturing Industry (Wenzhou Park in Jiading Industrial Zone)” in Wenzhou City, and Wenzhou City set up a “Science and Technology Innovation (R&D) Park” in Jiading District, Shanghai. It tended to explore Shanghai’s technological innovation resources and Wenzhou’s advanced manufacturing advantages under a coordinated and coupled development model. The third type is diversified enclaves, referring to “innovation enclaves” in the Yangtze River Delta that include four types of leaderships, involving the central government, local governments, industrial parks, and enterprises. In terms of dominant areas, it could be led by enclaves, exclaves, co-management mode, and multi-level participation. Most of the “innovation enclaves” built by Zhejiang in other provinces and cities in China are enterprise-led and co-managed by both parties, mostly in the form of R&D centers. The “innovation enclaves” built in Zhejiang by Shanghai, Jiangsu and other provinces and cities are mostly led by industrial parks and co-managed by both parties. The fourth type is special and professional enclaves with high-density and high-concentration, referring to the type that is beyond the traditional one featuring large areas, industrial diversification, and extensional development. The emerging “innovation enclave” has a small area, with a strong industrial focus and lots of incubators and innovation platforms, as well as a high industrial density and innovation concentration. It is model that targets innovation zones (communities) with Chinese characteristics. 2. From a traditional element development enclave to a talent enclave Different from the development zone linkage and off-site development models that are committed to traditional elements such as brand operation, land development, industrial cooperation, and transfer, the Yangtze River Delta is currently building talent enclaves supported by central cities. The aim is to promote science and innovation enclaves, and regional collaborative innovation communities in a bid to make it a major focal point to leverage each other’s strengths. For example, the Shanghai Talent Center of Zhejiang Xiaoshan Science and Technology City has built itself into a de facto internal part of Zhangjiang Science City and an “innovation sub-city”, and indirectly effectively links the two innovation platforms of Zhangjiang Science City and Zhejiang University. As Deqing’s “Shanghai Talent Enclave”, Mogan Zhigu (Deqing-Shanghai International Investment Promotion Center) plays its role as a “bridgehead” for recruiting talents and a city “meeting room”, thus opening up the industrial chain, capital chain, and talent chain between Shanghai and Deqing. 3. The leading effect of Shanghai's ‘enclave economy’ continues to strengthen In the context of the higher-quality integration strategy of the Yangtze River Delta, whether it is a traditional industrial enclave or a new technology and innovation enclave, talent enclave, etc., the development of the Yangtze River Delta has begun to show a common trend different from the past, and Shanghai’s leading effect becomes even stronger. In addition to the establishment of science and technology enclaves, talent enclaves or two-way “enclave economy” in many places in Jiangsu, Zhejiang and Anhui, the construction of some benchmark development zone linkages and off-site development projects has been promoted. For example, the benchmark cooperation projects between Zhejiang and Shanghai include the Yangtze River Delta Integrated Development Demonstration Zone, Greater and Lesser Yangshan ports, Pinghu Zhangjiang High-tech Park, and Shanghai Caohejing Haining Sub-park. Shanghai and Jiangsu jointly created Shanghai-Jiangsu Dafeng industrial cluster. Hefei also cooperated with Shanghai, and the Anqing (Shanghai) Park was promoted. 4. Central cities in three provinces have emerged in the development of enclave economy Nanjing, Hangzhou, Hefei, and Suzhou have begun to become important hubs for the establishment of technological innovation enclaves in other cities or places, and regional central cities are playing a greater role in promoting the enclave economy. The projects include China-Singapore Jiashan Modern Industrial Park, China-Singapore Suchu High-tech Industrial Development Zone, Hangzhou’s Quzhou Haichuang Park, and Hangzhou Lishui Digital Building. 5. Private economy becomes an important driving force for the development of ‘enclave economy’ In the context of the implementation of the strategy of higher quality integration in the Yangtze River Delta, significant changes have taken place in the development of the enclave economy in the Yangtze River Delta. For example, Wenzhou’s Ruian City and Wenzhou’s Yueqing City, which are pioneers in the private economy, took the initiative to set up “industrial enclaves” in Shanghai, and established Ruian City (Anting) Enclave Innovation Port and Yueqing City-Nanxiang Town Science and Technology Innovation Cooperation Center respectively in Jiading. These new industrial enclaves are, to a large extent, spontaneous market choices for private enterprises to develop and operate in different places. They reflect the complementary resources of the two places and the synergy of the industrial chain. 6. Integration and diversification of collaboration, development, and governance mechanisms between industrial parks The new “industrial enclaves” and “innovation enclaves” surpassed traditional functions such as investment promotion and industrial transfer, and achieved breakthroughs in business registration, mutual recognition of administrative licensing, intellectual property protection, information sharing, while exploring and establishing cross-regional development cooperation mechanisms and benefit-sharing mechanisms. At the same time, the cooperation mechanism and governance model of the Yangtze River Delta Development Zone are showing diversified trends. In the process of cooperation in share investment, the proportions of the shares each party holds are set in a flexible way, with different types of enclave, exclave, and joint management. The two parties maintain close coordination in closed-loop operation, benefit sharing and corporate-styled operation, which proved to be an effective development path. The park-level coordinated development in the Yangtze River Delta is also leading across the country. As early as November 2010, more than 30 parks and large enterprises jointly signed the “Framework Agreement on Collaboration and Alliance on Co-development of Parks in Yangtze River Delta”, with a view to jointly promoting the industrial transfer in the Yangtze River Delta region and the optimization of industrial layout. In September 2018, development zones, industrial parks, scientific research institutes, and enterprises and institutions in the delta have established the Yangtze River Delta Development Zone Cooperative Development Alliance, focusing on promoting park-level cooperation and industrial linkage, and playing an actively role in building high-quality industrial clusters, promoting regional integrated and coordinated development, and fully serving and adapting to national strategies. In addition, many professional development alliances have also been established, such as the Yangtze River Delta Innovation and Entrepreneurship Demonstration Base Alliance initiated by Shanghai’s Yangpu District in 2018, including 25 national innovation and entrepreneurship demonstration bases in Shanghai, Jiangsu, Zhejiang, and Anhui. It promoted the coordination and realization of preferential policies for innovation and entrepreneurship within four sites in Shanghai’s Yangpu, Changzhou’s Wujin, Jiaxing’s Nanhu, and Hefei’s high-tech zone.