China's Ministry of Science and Technology is drawing up incentives for investment in new technologies for the service sector, particularly electronic commerce, logistics, design and finance.

Science and Technology Minister Xu Guanhua said in Beijing Tuesday that his ministry would ensure the development of platform technologies for business.

However, technological integration and the creation of new business models should focus on upgrading technology in the service industry.

"The ministry will design policy incentives to attract companies to invest in those most innovative technologies that still lack a consensus for development," Xu said.

"All such new technologies for the service sector must be oriented and tested by the market."

In 2003, the government first outlined a technological development strategy for the service industry, which is also included in the long-term national science and technology development plan towards the year 2020.

The ministry will focus on information technology, digital society and technical standards in supporting the service sector.

Feng Jichun, a ministry official responsible for planning high technology research and application, said the ministry would help the country's leading service companies use new technologies.

A strategic report from the ministry showed that since 2000, many developed countries have shifted their development focus from the industrial sector to the service sector.

The service industry accounts for 74 percent of the U.S. gross domestic product (GDP) and about 80 percent of jobs. In China, it accounts for 41 percent of GDP, below average for low to medium-income nations.

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