The success of Hangzhou’s tech sector is not merely a byproduct of Alibaba’s enormous growth (Hangzhou hosts the worldwide headquarter of Alibaba), but also a result of government efforts to promote the industry. The government provides tax breaks and attractive incentives for high tech firms and internet startups, including housing subsidies for entrepreneurs and events to promote private and foreign investment to support startups.
The Hangzhou High-tech Enterprises Incubator is one of these initiatives, part of China’s wider Torch Program that supports entrepreneurship and innovation. Hangzhou also has several industrial parks and development zones, including the Hangzhou High-tech Industry Development Zone, which houses over two-thirds of the cities tech companies. Notable investors in this zone include Alibaba, Microsoft, IBM, Nokia, Panasonic, and Mitsubishi. Another key development zone is the Yuhang Future Science and Technology City, created to attract foreign talent.
The local government is proud of its support of entrepreneurs and private businesses, as well as its openness to foreign investment. In recent years, Hangzhou has been working hard to create a world-class business environment in accordance with the international standards, rules and practices, continuously optimizing institutions and mechanisms, upgrading the development of the real economy entirely, and promoting high-quality economic development with first-class business environment.
Out of the list of "China's Top 500 Private Enterprises in 2018", 36 companies are from Hangzhou, whose number of listed companies have ranked first in the country for 16 consecutive year.