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New materials are used by Qingdao Amphor Aromatic Ltd Co to make perfume. Company revenues surpassed 200 million yuan last year. [China Daily]

Hi-tech industries are driving a new round of economic development and innovation at the Qingdao Economic and Technological Development Area (ETDA).

Seventy-two percent of total sales revenues in EDTA were generated by new and emerging industries last year, an official from ETDA told China Daily.

The area's authorities said they are providing a sound environment for hi-tech enterprises by offering favorable policies, support in financing and sourcing and training professionals.

The local government invests 10 million yuan each year in a hi-tech industry development fund that supports scientific and technological innovation.

ETDA's 100 projects have been listed among China's National 863 Project and small and medium-sized enterprise innovation fund in the past two years, with 46 included in the national science and technology development plan in 2007.

An example of the effort is a low-speed ship diesel engine crankshaft that was before imported by shipbuilders. Qingdao Haixi Heavy Industry Co Ltd has designed and now manufactures the part, ensuring all domestic parts can be used by Chinese shipbuilders.

The first production line of domestically made liquid crystal display (LCD) television screens was also put into production in the area last year, lessening China's dependence on imports of LCDs.

The Science and Technology Park of Shandong University of Science and Technology opened in ETDA last year.

It is now home to 40 research centers and companies producing electronics, machinery, waterproof building materials, environmental protection and IT products.

Another project, the 860 million yuan Science and Technology Pioneering Park, is now under construction.

The Research Institute of Lanzhou University of Technology, Shandong Machinery Research Institute, and Taiguang Electrical Equipment Co Ltd are among five institutes and companies that begin operations in the park.

Local statistics show research institutes in and near Qingdao will include 28 new research and development (R&D) projects and 23 product manufacturing projects.

Eight of them, including the Biological Engineering Center of the China University of Petroleum, are in operation. Construction of another 16 projects is underway.

ETDA has to date formed industrial clusters for home appliances, electronics, petroleum, chemistry, automobile production, shipbuilding and new materials.

The zone now has 120 hi-tech enterprises, and nine national and provincial-level lab.

ETDA companies also have 24 top Chinese brands and trademarks.