Shanxi province has prioritized technological innovation and the development of strategic emerging industries since the start of the 14th Five-Year Plan (2021-25), with investments in these industries reaching 23.97 billion yuan ($3.4 billion) in 2024, accounting for 16 percent of total investment, while revenue exceeded 126.4 billion yuan, representing 10.38 percent of total income.

Sustained investment in strategic emerging industries has effectively expanded the growth potential of State-owned enterprises in Shanxi. Taiyuan Heavy Machinery Group, for example, has upgraded its equipment and production lines with intelligent technologies, establishing the world's first "Lighthouse Factory" – a leading smart manufacturing plant recognized by the World Economic Forum – in the rail transit sector, while Jinneng Holding has developed a complete industrial chain for the production and application of coal mining machinery and equipment.

Shanxi has implemented the "1551" Science and Technology Innovation Project, which focuses on R&D investment, performance incentives, and talent recruitment and training, effectively stimulating corporate innovation. During the 14th Five-Year Plan period, R&D investment in provincial industrial enterprises has increased by more than 20 percent annually for three consecutive years.

State-owned enterprises in Shanxi have participated in major national energy projects and joined several innovation consortia led by central State-owned enterprises. They have also established collaborations with local universities, creating a new mode of industry-academia-research integration.