Hoaco Automation Technology, a leading emerging business focusing on precision equipment manufacturing in the zone, has promoted innovation since its establishment. The company is at the stage of rapid expansion in line with the boom of China's electronics industry.

Tian Rouxin, assistant to the general manager at Hoaco, said that the company has strengthened its research and development capacity over the past few years. It has developed the world's first 20-station circular knife die-cutting machines which are used in manufacturing.

"We reported 130 million yuan industrial output value in the first half of 2017, up 70 percent year-on-year," Tian said. "We are confident about developments in 2018."

Aiming to support companies' innovation, Weifang Hi-tech Industrial Development Zone has released a series of measures to support business innovation. Added to that, the government is building up a new industrial system to speed up regional economic growth.

"We have launched five innovation projects, including research and development center upgrading and high-end equipment certification, to stimulate companies' innovative thinking and enhance innovation capacity," said Wang Zhende, deputy director of the Industry and Information Office at the Economic Development Bureau in the zone.

The administration of the zone is aware that innovation should not just be promoted among a small group of companies. There should be an overall atmosphere of innovation to prompt companies' transformation. The zone has provided financial support and policy support to create that atmosphere.

Supported by the zone, most enterprises in the region have established their own R&D centers. As a result, many new products and technologies have been introduced to the market.

Zhuang Jian contributed to this story.