Workers assemble new energy vehicles at Geely's production facility in Jinzhong. [Photo provided to China Daily]

The city of Jinzhong used to be the hub of Jinshang merchants, generations of businesspeople in Shanxi province who were said to dominate China's foreign trade during the Ming (1368-1644) and Qing (1644-1911) dynasties because of their enterprising and hardworking spirit.

Today, entrepreneurs in Jinzhong are aiming to revive the glory days with an innovative spirit added to traditional values.

An innovation-driven growth model is now what businesspeople pursue in Jinzhong. This is demonstrated in the growing number of high-tech companies, research institutions and technological innovation platforms.

Local statistics show that Jinzhong has 312 State-level high-tech businesses – among the largest number of cities in Shanxi. It is also home to 26 laboratories and technological innovation centers at or above provincial level.

Companies in traditional industries have shown a willingness to innovate, for the purposes of improving efficiency and cleaner production. This is the case of papermaking company Qiangwei in Jinzhong's Shouyang county.

According to Liu Fubin, an executive of the company, the papermaking industry used to be a major polluting source so that it is a focus of Qiangwei's upgrades.

For pollution control, Liu said Qiangwei's researchers have made efforts in developing technologies for the areas of sewage treatment, water recycling and dust removal.

"Our ultimate goal is to achieve sustainable development, generating both economic and social benefits," the executive said.

The company has made a heavy investment to build a recycling economy industrial park that will cover such sectors as papermaking, thermal power, construction materials and environmental protection.

"Upon the completion of the project, the company's total annual output value is expected to reach 8 billion yuan ($1.12 billion)," Liu said. Qiangwei's output value in 2022 was 2 billion yuan.

In the county of Heshun, Yinsheng Technology is another example of a company tapping into a cutting-edge sector through innovation.

The company is one of the nation's leading producers of silicon steel class magnesium oxide.

Magnesium oxide is a common material in the metallurgic industry. However, for the production of high-end products like grain-oriented silicon steel, silicon steel class magnesium oxide is a crucial ingredient.

According to Bai Feng, chairman of Yinsheng Technology, China's steelmaking industry had to rely on overseas suppliers for this material several years ago.

The monopoly of foreign suppliers was broken in recent years thanks to products with similar qualities being developed by Yinsheng's research team. Yinsheng is now the supplier of silicon steel class magnesium oxide to such domestic steelmakers as Baowu and Shougang.

"We are among the top eight producers of the product worldwide and the largest in the country," Bai said.

He said heavy investment in research and development is the most important reason for Yinsheng's success. The company's R&D budget has accounted for more than 20 percent of its operational revenue for many years. It is "a remarkable ratio that makes us stand out from many others", Bai added.

Zhang Qian and Feng Xinguang contributed to this story.