The first prize in national scientific and technological progress was awarded to CSR Sifang Locomotive & Rolling Stock for its high-speed trains, which can travel up to 250 km per hour. The company has secured a 47 billion yuan order from the Ministry of Railways.

Leading local companies are constructing national-level laboratories and engineering technology research centers. Three laboratories, almost complete, have been built by Haier Group, Hisense Group and Sinopec Qingdao Safety Engineering Institute. A further two to be sponsored by Tsingtao Beer Group and Marine Chemicals Research Institute have been approved by the Ministry of Science and Technology.

Qingdao has also signed agreements with the Ukrainian National Academy of Sciences, Ukraine Barton Welding Institute, Russian Academy of Sciences and Russian Ecological and Environmental Protection Center.

A total of 18 research and development institutions have been co-established by local businesses, domestic universities and research institutions, carrying out some 200 technical projects in total.

Mayor Xia Geng said that efforts will continue this year. The high-tech sector is projected to generate 460 billion yuan in annual output, a year-on-year increase of more than 15 percent, accounting for 46.8 percent of the city's total.

Plans for supporting small and medium-sized enterprises (SMEs) will continue to be implemented, with an aim to aid a total of 105 SMEs within three years.

Qingdao Industrial Technology Research Institute and six engineering technology research centers are planned and 15 projects in the sectors of electronic information, new energy, rail transportation and biomedicine are top priorities in the innovation initiative.

Meanwhile, the authorities are to build three high-end industrial clusters. There will be a manufacturing center especially for autos, engines, shipbuilding, marine engineering, energy and environmental protection facilities. There will also be a high-tech industry area providing facilities for companies concerned with electronic information, biological engineering, new materials and clean energy. A third area will be a focus for finance, technological information, logistics and creative businesses.

Qingdao hopes to become a model area for modern equipment manufacturing with several industrial parks established by 2012, and a leading center of high-end industry by 2020.

By Wang Qian (China Daily Shandong Bureau)

Editor: Li Jing