Summary of Key Points
Li Zexiang, a professor at the Hong Kong University of Science and Technology, one of the early mentors of DJI, and the founder of XbotPark, has dedicated 34 years to exploring a unique Chinese approach to transforming technology: from laboratory research to market-ready products and finally to industrial implementation. He has pioneered a new model of engineering education combined with an incubation system to cultivate a large number of hard-tech entrepreneurs. His achievements are remarkable: he has helped incubate over 280 hard-tech companies, with a total valuation exceeding 500 billion yuan (including 4 listed firms and 12 unicorns). He has challenged the notion that entrepreneurs are born with entrepreneurial skills, demonstrating that these abilities can be cultivated through systematic training. For instance, the entrepreneurship rate in some of the universities he has worked with exceeds that of MIT—25% at the Guangzhou Academy of Fine Arts compared to less than 1% at MIT. He has also developed a comprehensive incubation framework that includes talent selection, guidance throughout the process, and management of the supply chain, which has been replicated in multiple cities across China.
Detailed Analysis
1. Can hard-tech entrepreneurs be “mass-produced”? Li Zexiang disproves the notion of innate talent
Many believe that entrepreneurship is an inherent ability, but Li Zexiang proves otherwise:
- The three key components of his incubation system:
1. Talent selection: Starting from undergraduate programs or even middle schools, he identifies students who are willing to think innovatively and take risks.
2. Guidance and support: He provides funds for experimentation (not considered part of the educational cost) and allows teams to change directions if necessary (for example, Yunjing initially focused on floor-cleaning robots but later switched to lawn mowers).
3. Supply chain management: Collaborating with shared factories enables faster prototyping—1 week faster than in Hong Kong and 1 month faster than in the United States, allowing him to work with multiple suppliers from the same location.
- Data speaks for itself: While the entrepreneurship rate at MIT is less than 1%, it’s over 10% at the universities he has worked with (25% at the Guangzhou Academy of Fine Arts). These students learn through project-based learning and practical experiences (such as working on construction sites to understand market needs).
2. In the era of embodied intelligence: Don’t just focus on demos; practical implementation is crucial
The robotics industry is currently buzzing with talk about embodied intelligence, but Li Zexiang emphasizes that AI must be combined with hardware and specific use cases:
- The supply chain has changed: Traditional components like reducers were once a bottleneck; now, Chinese companies are designing and producing them in large quantities, even for applications like mattresses and sofas. The speed of supply chain iteration has increased significantly, reducing the cost of making mistakes.
- The philosophy has shifted: The Silicon Valley mantra has evolved from “Demo or die” to “Deploy or die.” Only by bringing products to market can technologies be improved and attract investment.
3. Why let students lead entrepreneurship rather than teachers?
Li Zexiang tried having teachers start businesses themselves but found structural barriers:
- Teachers are limited by their schedules (research and writing papers), while entrepreneurship requires full commitment.
- Students, being unburdened by academic requirements, are more open to exploring new directions (for example, Wang Tao of DJI started as a student).
- Lessons learned: An early incubation class at Harbin Institute of Technology was more successful than DJI’s but failed due to internal conflicts among the founders.
4. Investment approach: From hunting for opportunities to nurturing talent
Traditional VCs focus on data and trends, but Li Zexiang invests in cultivating entrepreneurs:
- Early support: He provides initial funding for experimentation, which is not considered part of the education cost.
- Equity structure: Once a company takes off, he invests another 2–3 million yuan as angel capital, with the team holding a majority stake (the teacher(s) typically hold a smaller share).
- Investing in unproven ideas: He supports projects that others dismiss, such as desktop dishwashers, which later became successful. Without data from early stages, VCs may be hesitant, but Li Zexiang can identify potential through the students’ growth.
5. Can the model be replicated nationwide? The key is to find passionate leaders and promote innovative education
Li Zexiang’s model has been adopted in cities like Ningbo, Changzhou, and Chongqing. The success relies on two factors:
- Finding willing leaders: Local individuals who are willing to take risks (e.g., Xu Shuling at Changzhou University and Luo Yuanxin at Chongqing University) to drive educational reforms and incubation efforts.
- Promoting innovative education: By creating independent institutions with customized curricula, recruitment processes, and teaching staff, the model avoids conflicts with existing systems. For example, the Guangzhou Academy of Fine Arts has achieved a 25% entrepreneurship rate by integrating art and technology.
Conclusion
Li Zexiang’s ultimate goal is to help China overcome the middle-income trap by fostering disruptive innovation. His approach aims to produce entrepreneurs capable of creating world-class hard-tech products. Even institutions like MIT and Singapore are interested in learning from his model, but he believes that an innovative ecosystem should be unique to China.
(The entire analysis is presented in plain language, making it accessible to non-experts and explaining Li Zexiang’s strategies for cultivating a large number of hard-tech entrepreneurs.)