The Shandong Provincial State-owned Assets Supervision and Administration Commission will launch a three-year action plan to cultivate and develop strategic emerging industries this year, hoping that the sector will account for 26 percent of Shandong province's GDP by 2027, as revealed at a conference on scientific and technological innovation on March 12.

Shandong will cultivate its strategic emerging industries through a three-year plan. [Photo/Dazhong News]

Shandong will step up efforts in seven areas, incentivizing enterprises to ramp up scientific and technological innovation.

A special action plan for the practical application of technological achievements will be launched to nurture and classify strategic emerging enterprises and projects, with those included in the provincial State-owned assets nurturing pool to receive specific policy support. The goal is to foster more boutique enterprises.

This year, the commission will draft the 15th Five-Year Plan (2026–30) for the reform and development of the province's State-owned enterprises (SOEs), including a special plan for technological innovation, which will further clarify the strategic direction, objectives, and support measures for technological innovation.

A focus will be placed on implementing a mechanism for increasing research and development (R&D) investment to ensure that the growth rate of R&D investment keep pace with that of operating revenue. Key manufacturing enterprises are expected to achieve an R&D investment intensity of over 6 percent. Companies, if possible, will be encouraged to establish an R&D reserve fund to provide stable financial support for R&D investments.

To achieve breakthroughs in core technologies, provincial SOEs are encouraged to develop a range of marketable, competitive and influential products and services in the fields of high-end equipment manufacturing, new energy, new materials, next-generation information technology including cybersecurity, high-end chemicals, biopharmaceuticals, and more.

Eligible enterprises will be encouraged to establish venture capital funds to serve as patient capital and long-term capital, providing sufficient financial security for strategic emerging projects. Qualified technology-based enterprises will be encouraged to implement equity and dividend incentives in favor of researchers.