Original Title: Notice from the Department of Industry and Information Technology of Shandong Province, the Development and Reform Commission of Shandong Province, the Department of Education of Shandong Province, the Department of Science and Technology of Shandong Province, the Department of Finance of Shandong Province, the Department of Human Resources and Social Security of Shandong Province, and the Market Supervision Administration of Shandong Province on the Issuance of the "Three-Year Action Plan for Promoting the High-Quality Development of the Virtual Reality Industry in Shandong Province (2022–2024)"
Lu Gongxin Dianzi [2022] No. 49
To the Bureaus of Industry and Information Technology, Development and Reform, Education, Science and Technology, Finance, Human Resources and Social Security, and Market Regulation of all cities:
We hereby issue the "Three-Year Action Plan for Promoting the High-Quality Development of the Virtual Reality Industry in Shandong Province (2022–2024)" to you. Please implement it earnestly in accordance with local conditions.
Shandong Provincial Department of Industry and Information Technology
Shandong Provincial Development and Reform Commission
Shandong Provincial Department of Education
Shandong Provincial Department of Science and Technology
Shandong Provincial Department of Finance
Shandong Provincial Department of Human Resources and Social Security
Shandong Provincial Market Supervision Administration
March 21, 2022
Shandong Province Three-Year Action Plan for Promoting the High-Quality Development of the Virtual Reality Industry (2022–2024)
As a major frontier field of next-generation information technology (including VR, AR, and MR), the virtual reality industry continuously expands human perceptual capabilities, innovates product forms and service models, profoundly transforms human lifestyles and production methods, and gives rise to numerous new products, services, models, and business formats. It is expected to become a new engine and driving force for high-quality economic development in our province.To promote the high-quality development of the virtual reality industry across the province, this Action Plan is formulated in accordance with the "Outline of the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives Through the Year 2035 of Shandong Province" and the "Shandong Province '14th Five-Year Plan' for Building a Manufacturing Powerhouse," taking into account the current state of development in our province.
I. Current Development Status
Globally, the metaverse—centered on virtual reality technology—is gaining significant momentum. With the continuous iteration of virtual reality products and the growing demand for a contactless economy, the global virtual reality industry has entered a new phase of rapid growth. Among leading companies, Microsoft has launched mixed reality (MR) headset displays, primarily used in engineering, design, medicine, and architecture.HTC is collaborating with Microsoft to drive ecosystem development, developing customized AR chips to create a new generation of energy-efficient, lightweight AR glasses that deliver rich immersive experiences. Facebook has rebranded as Meta (Metaverse) and is aggressively expanding into the metaverse sector, with its VR headset products holding a leading global market share. Tech giants such as Meta, Microsoft, and Apple have largely established a full-industry-chain ecosystem encompassing hardware, software, content, applications, and services through investments, acquisitions, and independent development.In terms of policy initiatives, South Korea has established the “Metaverse Alliance,” and its capital, Seoul, has formulated the “Basic Plan for Promoting Metaverse Seoul,” outlining the medium- to long-term direction and strategy for metaverse policies. Japan has released the “Survey Report on the Future Potential and Challenges of the Virtual Space Industry,” which assesses the current state of the country’s metaverse sector and recommends focusing on the development of industry standards and guidelines to secure a leading position in global metaverse development.
Nationally, China places high importance on the development of the virtual reality industry. In terms of policy planning, the State Council issued the “14th Five-Year Plan for Digital Economic Development,” proposing to deepen the integration of virtual reality technology and expand its applications in areas such as social networking, shopping, entertainment, and exhibitions. The National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Science and Technology have successively introduced guiding policies to support the development of the virtual reality industry. Regions including Beijing, Zhejiang, and Shanghai have issued documents to begin establishing future industrial development systems in the metaverse sector.Under the policy guidance of the central government and relevant provinces and cities, the range of virtual reality products and market applications continues to expand. In terms of end-user products, companies such as Huawei and Pico have launched high-end virtual reality headsets, while firms including Skyworth, iQIYI, and ByteDance have entered the market from other sectors. Regarding industry applications, virtual reality technology has played a positive role in maintaining pandemic control measures, facilitating the resumption of work and production, and supporting telemedicine and online education.
Within the province, Shandong has focused its efforts across multiple segments, including smart hardware, content production, application scenarios, and platform services. The province has attracted 243 enterprises and related institutions spanning the entire VR industry chain. In 2021, the sector generated 60.069 billion yuan in revenue, with VR product shipments exceeding 10 million units—a 130% increase—continuing to maintain a leading global market share.Regarding leading enterprises, Goertek, as the industry leader, holds a 70% global market share in mid-to-high-end VR headsets. It was the first to introduce world-leading 12-inch nanoimprint technology to establish an industrial base for high-end VR optical components, and has ranked first on the China Top 100 Electronic Components R&D Strength List for six consecutive years. In terms of technological innovation, Shandong currently has 13 high-end R&D institutions specializing in the VR field.Laoshan District in Qingdao has been approved to build the nation’s first high-tech industrialization base for virtual reality. The Shandong Virtual Reality Manufacturing Innovation Center is currently actively working to establish a National Virtual Reality Manufacturing Innovation Center. In terms of digital empowerment, our province is actively fostering the virtual reality content and industry application sectors. We have promoted 30 outstanding solutions and use cases in key areas such as education, manufacturing, healthcare, and smart cities, driving the deep integration of virtual reality technology with corporate digital transformation.The vigorous development of our province’s virtual reality industry will continue to stimulate emerging sectors such as digital twins and the metaverse, creating new growth drivers for our province’s economy and society.
Although the province’s virtual reality industry has achieved certain successes, prominent issues such as insufficient industrial chain agglomeration effects, a shortage of high-end talent, and limited industry applications remain, acting as bottlenecks constraining industrial development.
II. General Requirements
(I) Guiding Principles
We will adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guide, fully implement the spirit of the 19th CPC National Congress and all plenary sessions of the 19th CPC Central Committee, and thoroughly implement the important speech delivered by General Secretary Xi Jinping at the symposium on promoting ecological protection and high-quality development in the Yellow River Basin, as well as the spirit of his important instructions and directives during his inspection tour of Shandong. We will accurately grasp the new stage of development, firmly implement the new development philosophy, and serve and integrate into the new development paradigm.We will plan the virtual reality industry from a high starting point, rationally layout the industrial structure, expand the industry’s scale, strengthen the industrial chain, improve the industrial ecosystem, promote industrial clustering, and build a globally competitive virtual reality manufacturing base to provide strong support for the construction of a modern, powerful province in the new era.
(2) Development Goals
After three years of development, the supporting capabilities of key segments in the province’s virtual reality industry will continue to improve, the synergy of upstream and downstream industrial chains will grow stronger, the strength of leading enterprises in the virtual reality sector will be further enhanced, and shipments of hardware terminals will remain globally leading. We will cultivate and promote 100 application scenarios and solutions across the province, striving to build a first-class domestic and internationally competitive virtual reality industry hub with a scale of 100 billion yuan.
— Innovation capabilities will be significantly enhanced. We will foster and expand innovation platforms such as manufacturing innovation centers and technology R&D centers, and establish internationally advanced joint R&D centers and innovation platforms for virtual reality technology. By 2024, the virtual reality sector will have filed a cumulative total of over 3,000 new international and domestic patent applications, and the R&D intensity of leading enterprises will reach 6% or higher.
— The industrial chain continues to improve. The modernization of the virtual reality industrial and supply chains will be continuously enhanced, with distinct competitive advantages in R&D, testing, manufacturing, and automation. The capacity for industrial synergy will grow steadily, leading to the formation of a virtual reality industrial system with a rational structure and a well-developed ecosystem.
— Accelerated development of talent pools. We will cultivate and attract high-end R&D, application innovation, and senior management talent in the virtual reality sector who master key technologies and drive the development of interdisciplinary fields, while also attracting high-caliber entrepreneurial teams from both domestic and international sources. A professional talent cultivation mechanism will be preliminarily established, with a cumulative total of over 10,000 professionals trained in virtual reality-related fields.
— Market entities are being cultivated and strengthened. The number of enterprises is growing steadily, and operational efficiency is steadily improving. We are vigorously developing leading enterprises that possess core technologies and have international competitiveness and influence, while continuously enhancing the scale and strength of small and medium-sized enterprises to solidify the foundation of the virtual reality industry.
III. Industrial Layout
Support localities in leveraging their existing industrial foundations and differentiating their functional roles to pursue differentiated, distinctive, and collaborative development. This will essentially form a “1+4+N” regional layout for the virtual reality industry, centered on Qingdao, with coordinated development among Jinan, Weifang, Yantai, and Weihai, and collaborative participation from other cities.
Qingdao. Build a world-leading hub for virtual reality R&D. Fully leverage the innovative leadership of Goertek’s Global R&D Center and accelerate the establishment of the National Virtual Reality Manufacturing Innovation Center. Relying on universities such as Beihang University and Beijing Institute of Technology, as well as the National Key Laboratory of Virtual Reality Technology, focus research on core technologies including near-eye display, sensory interaction, spatial positioning, human-machine collaboration, development platforms, and rendering processing. Establish a leading position in key virtual reality technology fields and accelerate the transformation of virtual reality technology into productive capacity.
Jinan. Build a distinctive virtual reality application base. Leveraging the foundational support of the next-generation information technology industry, gradually expand the scale of the industry. Support enterprises in vigorously pursuing integrated innovation between virtual reality technology and emerging technologies such as 5G, artificial intelligence, ultra-high-definition video, and the Industrial Internet, and promote demonstration applications of virtual reality technology in characteristic scenarios across key sectors including manufacturing, education, healthcare, and smart cities.
Weifang. Build a national R&D and production base for virtual reality devices and core components. Leveraging the Goertek Headquarters Park, Science and Technology Innovation Park, Smart Hardware Industrial Park, and Optical Industrial Park, accelerate the R&D and manufacturing of core components such as complete devices and optical display components. Fully leverage the leading role of flagship enterprises to overcome technical bottlenecks in virtual reality terminal devices, promote the formation of stable supply chains between leading enterprises and upstream/downstream partners, and drive technological innovation and industrial upgrading across the virtual reality industry chain.
Yantai. Build a specialized application base for virtual reality in the industrial sector. Leveraging leading enterprises and the industrial foundation, strengthen cooperation with top industry players to achieve breakthroughs in cutting-edge technologies such as digital twins. Deepen the application of virtual reality in fields such as construction machinery, smart manufacturing, and digital factories, while gradually expanding into industrial sectors including consumer electronics and education and training.
Weihai. Establish a high-end consumer smart hardware industrial park. Focusing on the transformation and upgrading of manufacturing models for interactive multimedia smart hardware products, the city will build a domestic production base for consumer electronics and smart hardware targeting sectors such as mobile phones, wearable devices, and gaming consoles, as well as IoT fields including automotive electronics and smart home systems.
Other Cities. Leveraging local industrial foundations and unique characteristics, these cities will emphasize differentiated development, strengthen coordination and collaboration with key cities, attract projects effectively, promote industry applications, and gradually expand the scale of their industries.
IV. Key Tasks
(1) Optimize and Improve the Industrial Chain, and Strengthen the Industrial Development Ecosystem
1. Expand the supply of finished products. In response to the upgrading of information consumption and application demands across various sectors, accelerate the R&D and industrialization of virtual reality (VR) devices, sensory interaction devices, and content capture and production equipment to enrich the effective supply of VR products.Strengthen R&D of high-bandwidth, low-latency 5G technologies to meet the system’s requirements for high-speed, low-latency broadband. Promote research on ergonomic technologies to enhance the comfort of wearing complete systems and the stability of interactive devices, thereby improving the user experience. Develop and mass-produce content capture and production equipment such as motion capture systems and panoramic cameras to meet content production needs across various application tiers, including film, television, online media, and user-generated content.
2. Strengthen the foundation of core components. Break through patent and technical barriers that constrain industry development, address shortcomings in the development of electronic components, and ensure the security and stability of the industrial and supply chains. Tackle core technologies for key sensors such as infrared, structured light, and imaging to improve sensor accuracy. Accelerate the R&D and mass production capabilities of key optical components—including smart glasses optical modules, free-form prisms, and reflective lenses—to optimize optical production capacity.Expand MEMS R&D and industrialization efforts, actively pursue chip design initiatives, and actively introduce high-end chip R&D and manufacturing enterprises and technologies to strengthen support for core chips.
3. Strengthen software technology support. Build independent software development platforms and develop virtual reality (VR) operating systems, 3D development engines, content creation software, and development tools for perception, interaction, and rendering. Break through technical bottlenecks in application scenario development and enhance the system integration and convergent innovation capabilities of VR hardware and software products.
(II) Strengthen Collaborative Technological Innovation and Enhance Public Service Capabilities
1. Establish a collaborative innovation system. Leverage the role of innovation platforms such as the Virtual Reality Manufacturing Innovation Center to deepen the exchange and cooperation of innovation resources. Increase efforts in the R&D of cutting-edge, leading-edge, modern engineering, and disruptive technologies in virtual reality, and build a collaborative innovation and technology transfer platform that closely integrates industry, academia, research, and application.
2. Break Through Key Common Technologies. Adhering to the principle of driving innovation through complete systems and system-level integration, we will focus on key areas such as VR modeling, display, sensing, and interaction to overcome weaknesses in the industrial chain, including critical foundational technologies, core technologies, and “bottleneck” issues. By adopting a “challenge-based” mechanism, we will intensify research and development efforts in key technologies such as optical display systems, human-computer interaction, graphics processing, and ergonomics, thereby driving breakthroughs in VR-related fundamental theories, common technologies, and application technologies.
3. Establish public service platforms. Support industry associations, industrial parks, research institutes, and leading enterprises in building public service platforms focused on VR testing and inspection, pilot production and incubation, industrial consulting, and standards and specifications, thereby forming a public service system characterized by resource sharing and complementary strengths.
(3) Conduct Industry Application Demonstrations to Empower Cutting-Edge Emerging Fields
1. Promote Industry Applications. Leveraging the province’s advantages in the application market, we will deepen the integration of virtual reality with industry applications. We will support enterprises, universities, and industry organizations in establishing virtual reality application experience centers, continuously intensify promotional efforts, facilitate technological iteration, create new technological demands, and accelerate the commercialization of 5G+VR achievements.
2. Create Industry Demonstrations. Continuously solicit and publish outstanding VR solutions to establish application models for VR technology in key industries and specialized sectors such as manufacturing, education, culture and tourism, healthcare, and smart cities, thereby promoting the demonstration and adoption of VR technology across various sectors.
3. Empowering Cutting-Edge Emerging Fields. Keeping pace with the metaverse trend, we will strengthen the development of foundational metaverse capabilities, expand our presence across multiple domains including terminal devices, content production, universal platforms, and application ecosystems, and explore innovations in underlying technologies such as big data, artificial intelligence, blockchain, and cloud computing.Focusing on metaverse entry points such as virtual/augmented reality and wearable smart devices, we will establish full-chain technology output and multi-domain technological synergy across related industries, accelerate the empowerment of cutting-edge emerging fields, and build new business models for Shandong’s digital economy in the metaverse era.
(IV) Cultivating and Strengthening Market Entities to Stimulate Intrinsic Market Vitality
1. Accelerate the cultivation of industry-leading enterprises. With a focus on strengthening leading enterprises that possess ecosystem leadership and core competitiveness in global industrial development, implement incentive-based rewards for leading enterprises that meet criteria such as economic growth, stable employment levels, and outstanding achievements in green and sustainable development. Leverage the leading role of these enterprises to enhance the overall competitive advantage of the province’s virtual reality industry.
2. Cultivate innovative small and medium-sized enterprises (SMEs) by category. For enterprises in specialized segments such as VR device manufacturing, core components, content production, platform services, and system integration, support entrepreneurship and innovation through alliance cooperation, venture capital, and planning consultation. Cultivate high-quality enterprises in the VR sector, including “specialized, refined, distinctive, and innovative” firms, single-champions, gazelles, and unicorns. Support enterprise capacity building through models such as “innovation service vouchers.”
3. Promote integrated development among large, medium, and small enterprises. Support enterprises in extending their industrial chains through upstream-downstream collaboration and spin-off listings. Establish industrial parks centered on enterprises and characterized by leading industries to foster or attract the clustering of more related enterprises. Accelerate the formation of an industrial ecosystem centered on large enterprise groups, featuring high concentration, refined division of labor, and efficient collaboration. Create a new pattern of integrated development where large enterprises drive the growth of small and medium-sized enterprises, while the latter inject vitality into the former.
(V) Strengthen Talent Recruitment and Development to Power Industrial Growth
1. Deepen Talent Development. Deepen the school-enterprise cooperation model, encourage universities to collaborate with enterprises in offering virtual reality specialized courses, and support enterprise participation in curriculum development and faculty training. Leverage the resource advantages of vocational colleges within the province to innovate vocational and technical talent cultivation methods, forming a diversified talent development model with enterprises as the primary demand drivers. Closely align with industrial development needs to cultivate a cohort of skilled virtual reality professionals.
2. Optimize training platforms. Enhance the development of national-level virtual simulation experimental teaching centers, virtual reality vocational education consortia, and public virtual reality industry training bases; continuously enrich training content and elevate the level of professional skills training. Support the organization of virtual reality-related vocational skills competitions to effectively integrate the education chain, talent chain, and industrial chain, thereby enhancing the influence of the virtual reality field.
3. Strengthen Talent Recruitment. Make full use of the incentive system for cutting-edge technical talent in key industrial chains to advance the development of the virtual reality talent pool by category and field. Establish a linkage mechanism between major virtual reality projects and talent recruitment, implement personal income tax incentives, and formulate precise, efficient, and flexible talent recruitment policies regarding residency registration and medical insurance.Support employers in our province in applying for the “Shandong Talent Card” on behalf of experts in the virtual reality field recruited on a flexible basis. Eligible technical professionals in the virtual reality industry may enjoy the “fast-track” policy for senior professional title evaluations for high-level technical talent. Establish platforms for cooperation with key universities and research institutions both within and outside the province, and make every effort to build a hub for the concentration of high-end virtual reality talent.
V. Support Measures
(1) Improve Working Mechanisms. The Provincial Department of Industry and Information Technology, in conjunction with the Provincial Development and Reform Commission, the Provincial Department of Education, the Provincial Department of Science and Technology, the Provincial Department of Finance, the Provincial Department of Human Resources and Social Security, the Provincial Market Regulation Bureau, and other relevant departments, shall organize and implement the Action Plan. Concrete and effective policy measures shall be adopted to establish long-term mechanisms in areas such as factor support, market demand, and policy assistance.Guide leading enterprises to collaborate with industry associations, universities, and research institutes to establish a provincial virtual reality industry alliance, fully leveraging its role as a bridge and link to jointly promote the implementation of the action plan. Relevant cities shall formulate supporting policies based on local conditions. Enterprises must be urged to establish and improve safety management systems covering the entire production and operation process to ensure safety standards are strictly adhered to.
(2) Implement Fiscal and Tax Measures. Fully leverage the incentive role of fiscal and tax policies to further increase support for the virtual reality industry. Provide policy support to leading and distinctive industrial clusters in the virtual reality sector that demonstrate strong comprehensive strength, high development vitality, excellent R&D and innovation capabilities, and well-developed public service capabilities. Utilize policies such as insurance compensation to promote the entry of innovative products or projects into key industrial sectors. Projects and enterprises listed as provincial-level outstanding virtual reality solutions shall be given priority for recommendation to apply for industrial transformation and development funds.
(3) Deepen Industry-Finance Integration. Encourage private capital to enter the virtual reality sector through various channels. Leverage the incentive role of policies such as the “Technical Transformation Special Loan” to increase financing support for key virtual reality projects and enterprises. Guide financial capital to engage in deep cooperation with the virtual reality industry, forming a new framework of multi-source investment involving fiscal funds, financial capital, and private capital.
(4) Strengthen Exchange and Cooperation. Enhance exchanges and cooperation with advanced countries and regions worldwide to build an industrial landscape characterized by open development and win-win cooperation. Support industry associations, industrial alliances, and other organizations in conducting activities such as industrial chain matching, industry-research collaboration, and sectoral exchanges. Leverage platforms such as the International Virtual Reality Innovation Conference and skills competitions to accelerate complementary cooperation within domestic and international industrial and supply chains. Encourage universities, enterprises, and research institutes to engage in innovative cooperation with overseas teams to establish world-class R&D centers and innovation bases.
