Shandong targets conversion of old and new growth drivers

Shandong province has in recent years been committed to accelerating the conversion of old and new growth drivers, in order to promote the modernization of its industries and to boost integrated and coordinated regional development.

The State Council recently approved Shandong provincial government's application to merge its smallest administrative area, the city of Laiwu, with the neighboring provincial capital city Jinan.

The adjustment of administrative divisions has brought Shandong a new opportunity to drive the conversion of old and new growth drivers. Both cities have had potential for industrial development, but also have had drawbacks. Laiwu has in recent years striven to build itself as a national new material industrial and high-quality steel production base but has been held back by a lack of resources and innovation capability, while Jinan boasts rich sci-tech innovation resources, but has limited space for development.  

Hu Bo, director of the development planning department of Shandong Development and Reform Commission, said, "The adjustment of administrative divisions will surmount the institutional barriers which have restricted Jinan and Laiwu's development, and propel the two cities industries to another level."

The merging of the two cities is also expected to deepen regional integration, optimize resource allocation, foster a sound industrial layout, facilitate Jinan's efforts to form a string of 100-billion-yuan industrial clusters and achieve win-win results.

Shandong Letrue Technology Co, a producer of instruments based in Laiwu, is researching the instrument chips based on the Internet of things (IoT). Hao Zhengang, chairman of the company, said, "Our instruments are connected to the Internet, enabling users to conduct inquiries and collect data via a mobile app."

The chips used for high-end measuring instruments used to be imported from foreign countries. This was before Letrue decided to research and develop its own chips, although the R&D was initially restricted by the high cost of doing so.  

According to Qiu Dehua, the director of Letrue's R&D center, the integrated circuit design requires a set of design software worth over 100 million yuan ($14.78 million).

An R&D center built by Jinan innovation zone helped Letrue solve the problem. With the zone's IC design platform, the company made breakthroughs on the instrument chip technology within one year.

Jinan innovation zone has focused on the model of "R&D centers in provincial capital cities + manufacturing centers in neighboring cities," with the aim of promoting the collaborative innovation among provincial capital cities.