At the opening of the first Pudong Innovation and Incubation Week, Science and Technology Minister Xu Guanhua said innovation is the impetus for the growth of a nation.

"Facing the challenge put forward by the development of a knowledge economy, the central government has been working on establishing a healthy mechanism for technology innovation since 1999," he said.

However, Xu also pointed out that China's overall capability of innovation lags behind many developed countries, meaning new strategies to further prompt innovation are extremely crucial.

"Keeping a good balance between technology innovation and technology transfer from abroad is of top priority," he said.

"We should put more energy in to create and innovate core and strategically important technologies."

At the same time, forging a nation-wide interactive research and development system, supporting the construction of research and development centers in different regions and encouraging more communication and exchange between Chinese academics and foreign counterparts will also upgrade innovation, officials at the ceremony said.

Xu said businesses and not governments should play major roles in research and development.

He said Shanghai is one of the most important research and development centers in China.

According to the Shanghai municipal government, Pudong has been the engine for the coastal city's innovation.

(China Daily September 12, 2002)