With new technology a key competitive advantage for Shandong, the province is accelerating its development to increase its industrial strength.

"Technological progress is the lifeblood of industrial development as well as the only way to promote Shandong's performance from good to strong," said Vice-Governor Wang Junmin .

In 2009, the province received 33 national science and technology awards, including a first prize for national technical invention and two prizes for scientific and technological progress.

Large-scale industries in Shandong achieved production value of 1.89 trillion yuan last year, an increase of 14.9 percent on 2008. Investment in technical improvements accounted for 70 percent of total industrial investment and amounted to 651 billion yuan. This investment has increased markedly over the past six years, up from 100 billion yuan in 2003.

Of the large-scale industries in the province the output value of the high-tech industry accounted for 32.9 percent of total output, an increase of 2.2 percent.

According to Shandong Economic and Information Technology Committee the main targets for this year are to add 13 percent of industrial growth, and to increase investment in technological upgrading by 18 percent.

Rongcheng is the coastal province's largest wind power farm.

At the same time Shandong is working to improve the scope for independent innovation in order to accelerate scientific and technological progress.

Changes in technology used in industry mean that industrial processes can be upgraded and made more efficient.

Investments in technical improvements in key areas are growing at an average rate of 30 percent, including in iron and steel, nonferrous metals, electronic information, equipment manufacturing, automobiles and shipbuilding industries.

Creating innovation

Shandong has focused on developing the technology for certain key enterprises, products and well-known brands.

Guo Shuyu, director of Shandong's Economic and Information Technology Committee, said: "Shandong is accelerating technological transformation as well as paying more attention to technological innovation."

Zhang Zhigang is chairman of Jier Machine-Tool Group Co Ltd and believes that "Innovation has made our products win more of the domestic and overseas markets. It has enabled the development of our enterprise."

Over the past 5 years, more than 2,500 new products have entered the international marketplace, representing the vast innovative capability of the province. These include a digital media processing chip made by Hisense, carbon fiber by Weihai Guangwei Group, an ion membrane by Zibo Dongyue Group, aramid fibers by Yantai Spandex, and a new type of engine by Weifang Diesel.