As a national pilot city for technological innovation, Qingdao should be at the forefront, leading the nation in innovation that serves as a powerful engine in economic development, said Liu Mingjun, director of the city's Development and Reform Commission.

The coastal city's high-tech sector generated more than 440 billion yuan in industrial output last year, accounting for 46.5 percent of Qingdao's total.

The value of industrial products with proprietary intellectual property surpassed 150 billion yuan.

The annual average number of new products in the city is about 4,000, more than half of which have proprietary intellectual property.

The high-tech sector produced 249 billion yuan in industrial output in the first half of this year, up nearly 28 percent year on year.

More than 2,900 patents have been granted during the same period, an increase of 50.8 percent year-on-year.

According to the city's development plan, the high-tech sector's industrial output is projected to reach 700 billion yuan in 2012, some 50 percent of the city's total.

Currently, there are nearly 800 high-tech companies in Qingdao, according to data from the city's technical bureau,

Strategic partnerships that local companies forged with leading research and educational institutions, including the Chinese Academy of Sciences, help sharpen their edge in innovation.

Six State-level institutes, 12 corporate technological centers and three key national labs have been established in the city.

"Innovation will be the greatest power for Qingdao to blossom again." said Liu. "We will start at a higher new point to build Qingdao into an innovation-oriented city in the next five years."

Local authorities plan to give full support to high-tech projects in 10 fields, with 12 technological industrialization centers planned.

The 10 fields to be supported include e-communication, modern service, advanced equipment manufacturing, new material, renewable energy, biotech, modern agriculture, environmental protection and comprehensive utilization of resources.

Experts and specialists are laboring hard to make 100 technological breakthroughs in the 10 domains in the next five years.

According to the city's development plan, science and technology is expected to contribute about 60 percent of growth in the local economy in 2015.

The high-tech sector's industrial output is then projected to take up 55 percent of the city's total.

And emerging industries are expected to become the city's pillar sector with some 20 percent contribution to local GDP.

To achieve these goals, the authorities are attracting advanced research institutions, large domestic enterprises and Fortune 500 firms in a bid to absorb innovative resources from home and abroad.

Its next five-year plan (2011-15), calls for 500 innovation-oriented companies to be fostered.

At the same time, authorities will formulate a series of supportive policies to encourage collaboration between the industry, educational institutions and research centers, especially for intelligent transportation, high-speed trains and home appliances.

Overseas scholars, experts and startups are groups the city government wants to attract.

In the next five years Qingdao's administrators will spend more than 10 billion yuan to enable greater research and development.

In addition to government aid, other financing means have yet to be tapped, including special funds for small and mid-size businesses, new investment funds and venture capital, and cooperating with banks on tech projects.

(China Daily 09/15/2010 page24)