Domestic innovation crucial to prosperity

China's impressive leaps in technological innovation in 2010 support the policy of promoting indigenous innovation's development and show the country is capable of breakthroughs.

The country needs to cultivate indigenous innovation to ensure reliable sources of technology, improve exports' quality and realize sustainable development.

An important characteristic of the Chinese economy since the reform and opening-up has been a reliance on technology transfers. The model has been successful but is becoming less efficient.