With “innovation” the watchword, China today is bent on pressing ahead with overall reforms. “To cross the river by feeling the stones” has proved a successful development approach which has conformed well to the country’s realities these past 25 years. However, challenges are mounting as the country deepens reform efforts to address many underlying and emerging institutional problems.

The robust growth of the US high-tech industries in recent years bears full testimony to the vital importance of a broad institutional framework to encourage innovation. China must speed up all-round innovation if it wants to shift from previous extensive growth at the expense of resources and environment to more efficient sustainable development.

But before innovation can take root in this country, policy-makers should do away with institutional obstacles in various forms.

For the complete story: China Daily, here.