A big data business model contest was launched in Beijing on Sunday to encourage innovation in electronic information.

The competition, named 2016 China International Electronic and Information Maker Contest also known as "Guizhou Cloud", is the first of its kind in China with a focus on smart gear and big data technology.

The event is organized by China's Ministry of Industry and Information Technology, Guizhou government and the China Association for Science and Technology.

Winning projects will share a cash award worth 5 million yuan ($759,500). If the winners set up their projects in southwestern Guizhou province, they will get extra awards from the government.

Qin Rupei, executive vice governor of Guizhou, said last year that only companies willing to set up businesses in Guizhou were qualified to receive the cash award. "This year, we offer the award to the best projects with no strings attached," he said.

"However, if the wining companies are willing to come to Guizhou, they can apply for angel investment worth 15 million yuan in total," he added.

The competition is part of Guizhou's effort to turning itself into a big data hub. In September China launched its first big data pilot zone in the province, helping lay the foundation for big data resources and applications.