With an average of 10 patents approved each day and 90 percent of those used in production, Qingdao is illustrating its strong capacity for innovation.

"Independent technological innovation is the core competitiveness of the city's sustainable economic development," Xia Geng, mayor of Qingdao, told China Daily.

According to the city's medium and long-term development plan for science and technology (2006-20), Qingdao will be an innovation-powered city by 2012.

The plan calls for 2.8 percent of the city's gross domestic product to be invested in science and technology by 2012 to boost economic growth and promote progress, including construction of the new countryside, the healthcare system and energy-saving and pollution reduction programs.

"To have more independently developed intellectual property in high-end technological fields is crucial for industrial improvement and development," said Wang Anmin, director of the Qingdao Science and Technology Bureau.

According to Wang, output value created by hi-tech industries in Qingdao hit 309.19 billion yuan in 2007, an increase of 32.74 percent over 2006.

To enhance capacity in independent innovation, local authorities have formulated plans for science and technology research laboratories to tackle key technological problems. The blueprint calls for 10 hi-tech industrial centers and efforts to foster a talented workforce in hi-tech innovation.

Six innovation centers, including Haier's national laboratory for digital household appliances, are now under construction.

A 750 million yuan China National Offshore Oil Corp technological research center for heavy oil processing is scheduled for completion at the end of the year.

A number of new designs have already been put into production, including the 300-km-an-hour high speed train built in Qingdao that makes China the fourth country capable of independently designing and building such kind of train, following Germany, France and Japan.

Ten industrial centers - including those for software, digital high-definition TVs, new materials and seafood - have been established, and are expected to generate revenues of 120 billion yuan by 2010.

Wang said Qingdao will continue to enhance cooperation with international partners through work with overseas research institutes including those from Russia, Germany and Ukraine, in a bid to introduce internationally advanced technologies.

One is Lanxess Corp, among the world's largest rubber producers, which based its Chinese research center in Qingdao.

The Qingdao city government plans to support 30 selected small and medium-sized enterprises working in new materials, electronics and bio-engineering every year to help them cultivate their innovation ability.

The government is also encouraging universities, research institutes and companies to work together in technology research and training of professionals.

More than 10 companies in Qingdao, including Haier and Hisense, have now established partnerships with about 100 universities and research institutes, including the Chinese Academy of Sciences, Shandong University and the Ocean University of China.

(China Daily 07/03/2008 page24)