Innovation key to sustainable growth

Innovation is at the heart of sustainable growth and development. With innovation, labor earns higher wages, and growth can be environment-friendly sustained by less input of capital and natural resources.

This is why promotion of homegrown innovation has become a key pillar of China's development strategy. But what are the sources of innovation, and how to become an innovation nation?

Innovation captures the process through which knowledge and scientific invention turn into new products, or new institutional arrangements that improve efficiency or quality of services. Innovation so defined is inseparable from knowledge generation and dissemination and is fundamental to economic catch-ups for developing countries.