Shandong province has been at the forefront of cultivating specialized and sophisticated small and medium-sized enterprises in China. Focusing on nurturing high-quality SMEs, the province has achieved remarkable results. As of now, Shandong boasts 18,072 specialized and sophisticated SMEs and more than 1,000 specialized and sophisticated "little giant" enterprises, ranking among the top in the country.

To support the growth of these enterprises, Shandong has implemented a comprehensive policy framework that covers financial incentives, equity incentives, financing assistance, and talent attraction. All 16 cities in the province have introduced such policies, with most offering direct fiscal subsidies.

Notably, 95 percent of Shandong's specialized and sophisticated SMEs with over 100 million yuan ($13 million) in revenue allocate at least 3 percent of their revenue to research and development.

Shandong Chunguang Technology Group, a specialized and sophisticated "little giant" enterprise based in Linyi, serves as a shining example of how these policies can benefit. By collaborating with a national cross-industry and cross-field industrial internet platform, the company has significantly improved its production efficiency and gained real-time insights into its manufacturing processes, facilitating smoother integration with its supply chains and industry value chains.

To further accelerate the digital transformation of SMEs, Shandong launched an initiative to send 10,000 digital specialists to enterprises across the province. This program aims to guide specialized and sophisticated SMEs in adopting intelligent upgrades, cloud-based equipment, platform empowerment, and online marketing.