Qingdao has won approval to be China's first pilot city in national technological innovation, from the Science and Technology Ministry.

"I am very proud to be the mayor of the city taking the lead to promote technological innovation in China," Mayor Xia Geng told China Daily.

The mayor said that capability in this area "is central to the city's competitive development. We are determined to strengthen this sector to revitalize the city's economy."

He added that implementation guidelines and plans would be unveiled at the end of March.

Since 2006, local authorities have released a series of policies to encourage innovation. Last year a scheme targeted at 10 industries was initiated. According to the scheme, 10 high-tech industrial centers will be established by 2012.

Over 200 companies gained the status of high-tech enterprise last year and more than 3,732 patents were granted, a year-on-year increase of 23 percent. Seven products won national science and technology awards.

Statistics show that output value in the high-tech sector was 396.6 billion yuan in 2009, a year-on-year increase of 15.72 percent, accounting for 46.48 percent of the city's total output.

Over 200 companies gained the status of high-tech enterprise last year and more than 3,732 patents were granted, a year-on-year increase of 23 percent. Seven products won national science and technology awards.

The first prize in national technical invention was awarded to the research team led by Guan Huashi, of the Ocean University of China, for their work on marine characteristics of oligosaccharides. Experts said that the research lays the foundation for China's marine pharmaceutical industry.

More than 20 key industrial technologies have been discovered, including 1000 kV high voltage insulation materials.

There are several national research institutes in the city, including an energy technology center. In March 2009, the city signed an agreement with the Chinese Academy of Sciences.