Three key steps toward an innovative future

The compass, paper money, moveable type printing, gunpowder and silk. These are a few of the inventions that until the early modern era put China ahead of the West as an innovator. But past glories are insufficient to address current and future challenges. Innovation requires a continuous flow of new ideas, and the ability to transform these into dynamic economic processes.

What should China do to support its transition to a more innovative economy? Lessons from other countries point to three key steps.

The first is education. The success of advanced economies is without exception founded on strong and well-funded education systems. Basic education lays the foundation for other levels. It needs to be amply funded and accessible to all regions and social groups.