An industrial cluster, with an annual output valued at billions of yuan, is emerging in Fuzhou, the capital city of East China's Fujian province. A group of innovation-driven enterprises, from both traditional and new and high-tech industries, have enjoyed fast development during the past few years, the People's Daily reported.

Fuzhou Rockchip Micro-electronics cooperated with Intel Corporation to develop a chip applied to cellphones and tablet computers, the annual sales volume of which is expected to reach 30 billion yuan ($4.8 billion).

"As an integrated circuit design company, Rockchip has been focusing on research and development, and R&D expenditure accounts for nearly 20 percent of the total sales revenue," said a director at the company.

In Fuzhou, there are many other companies like Rockchip giving priority to innovation. By 2014, the city's output value of new and high-tech industry hit 340 billion yuan. The city boasts a string of provincial enterprise engineering technical centers, city-level experts working stations and innovation centers.

Furthermore, the city government has rolled out a series of policies to encourage industrial innovation. This year, the city's financial budget will allocate 300 million yuan to buoy up technical innovation and industrial transformation and upgrading. Another 98 million yuan and 89 million yuan will respectively be used to support R&D and protect intellectual properties.

Edited by Mevlut Katik