State-owned enterprises (SOEs) in Shandong are driving industrial transformation by increasing investment in research and development (R&D). From 2020 to 2024, their total R&D spending surged from 25.57 billion yuan ($3.65 billion) to 52.91 billion yuan, fueling breakthroughs across traditional and emerging sectors.

In the energy and materials sector, Shandong Energy Group pioneered intelligent deep-mining technology, boosting resource recovery rates by over 20 percent. Shandong Iron and Steel Group developed a smart control system that improves the efficiency of product specification changes by 28.6 percent. Shandong Heavy Industry Group's Weichai Group has broken the world record for diesel engine thermal efficiency four times, now reaching 53.09 percent, while also advancing methanol engine technology. Shandong Gold Group implemented a green, intelligent filling method that has increased mining site capacity by 28 percent year-on-year.

A reference image showing Weichai's diesel engine with a thermal efficiency of 53.09 percent at the 2024 World Congress on Internal Combustion Engines in Tianjin. [Photo provided to chinadaily.com.cn]

Shandong SOEs are also creating new pathways with digital intelligence. Shandong High-speed Group recently built China's first digitally upgraded 12-lane expressway, using AI monitoring to cut average emergency response time by six minutes. Inspur Group co-developed a provincial AI and innovation resource-sharing platform to support the digital transformation of other enterprises, which can expand cooperation for small and medium-sized enterprises.

Inspur Group co-developed a provincial AI and innovation resource-sharing platform to support the digital transformation of other enterprises. [Photo provided to chinadaily.com.cn]

In healthcare, innovation enhances public welfare. Lushang Freda Pharmaceutical has become a leader in China's hyaluronic acid industry, with products exported to more than 70 countries and regions. Shandong Xinhua Pharmaceutical, under Hualu Group, runs a national smart manufacturing demonstration factory with 95 percent automation in core workshops.

The workshop of Lushang Freda Pharmaceutical. [Photo provided to chinadaily.com.cn]

These concerted efforts underscore how Shandong's SOEs are systematically leveraging science and technology to cultivate new pillars for high-quality economic growth.