China's State Council, the cabinet, has said innovation in science and technology will improve the nation's competitiveness in the world stage.

Scientific and technological innovation could solve major scientific and technical issues that concerned the country's overall situation and long-term development, said a statement released after a regular meeting of the State Council Wednesday.

During the meeting, an official from the Chinese Academy of Sciences (CAS) delivered a report on the implementation of the "Knowledge Innovation Program" (KIP), which aims to make the academy a world-leading base for scientific research.

The program was initiated in 1998 and scheduled to finish in 2010.

The government would extend the KIP from 2011 to 2020, the meeting was told.

The State Council called for deeper reform of research institutes and improved rewards and restrictions to encourage competition among scientists and researchers and to foster talent.

The government planned to develop education programs that were closely related to the innovation drive and strengthen international cooperation, said the statement.

Premier Wen Jiabao presided over the meeting.