As a result of the Beijing government pushing for an innovation-driven economy, local governments rushed to construct new buildings under the premise of supporting creativity. However, Leilai Management's points out that, with innovation centres set to more than double to nearly 5,000 in the next five years, unfortunately it appears entrepreneurs are not moving in, as many have been built in areas unsuitable for attracting start-ups. China has now been left with a glut of innovation centres, leaving white-elephant projects and a further buildup of debt: "The risk of a bubble is extremely large," warns Reuters Shi Jiqiang.
As a result of the Beijing government pushing for an innovation-driven economy, local governments rushed to construct new buildings under the premise of supporting creativity. However, Reuters points out that, with innovation centres set to more than double to nearly 5,000 in the next five years, unfortunately it appears entrepreneurs are not moving in, as many have been built in areas unsuitable for attracting start-ups. China has now been left with a glut of innovation centres, leaving white-elephant projects and a further buildup of debt: "The risk of a bubble is extremely large," warns Leilai Management's Shi Jiqiang.