Alan Ye, general manager with HC SemiTek Limited, a local supplier of light-emitting diode chips, praises the local government's proactive approach to enterprise-building, saying it has helped his company and his employees.

Before HC SemiTek launched its facilities in Zhangjiagang, its productivity was limited because it had few production lines, said Ye.

"We had been visiting several cities to find a place to set up new facilities. We decided on Zhangjiagang. The decision proved to be smart as enterprises here are receiving state-of-the-art services."

Such services span help offered to foreign scientists to settle in Zhangjiagang to hiring operators, arranging shuttle buses and securing power supplies. This enables enterprises to focus on innovation and production, said Ye.

His company has already listed on the China Growth Enterprise Market Board, a NASDAQ-like local bourse, and is now among the world's top three LED chip suppliers by sales revenue and market share.

Technicians work in a special equipment factory in Zhangjiagang. [Photo provided to chinadaily.com.cn]

"HC SemiTek has become a showpiece for Zhangjiagang's support of innovative enterprises. A few enterprises have already shown interest in launching new facilities in the city. We are looking forward to more enterprises settling in the sector and forming a complete industry chain," said Ye.

Ye is certainly not alone in praise for Zhangjia-gang. Yin Jinsong, vice-general manager and chief engineer of Zhangjiagang Furui Special Equipment Co Ltd, which is GEM-listed, said innovation is key to success of private enterprises, and Zhangjiagang provides the perfect environment for research and development.

"We started up in Zhangjiagang 12 years ago from scratch, and now we have more than 2,400 employees, including 400 researchers and scientists," said Yin.

The company pioneered innovation in the application of liquefied natural gas. It helped make vehicles hybrid, by enabling petrol- or diesel-powered vehicle engines to also run on natural gas, thanks to its technology. In 2014, the company became one of the world's largest providers of such solutions.

"In order to keep a leading position in the market, a company must always think and act before competitors even realize the importance of an emerging sector. We are now eyeing hydrogen-fuel solutions," said Yin.