We live in an age where innovation has revolutionized almost every part of our lives. And the new and positive changes that innovation brings act as a catalyst that drives forward the development of our society.

New technologies, ventures or business models that lead to increased efficiency, productivity or profits are, without exception, all innovative in nature, bringing benefits to humankind.

Some innovations can open up an entire new era, like China's reform and opening-up program initiated by the late leader Deng Xiaoping. Seen as one of the greatest innovations of modern China, it has transformed an unprecedented national rejuvenation scheme into reality and placed China on a fast track to development.

Innovation is also a priority for enterprises competing in the business world. While this can be multifaceted, be it in marketing, management or culture, it is technological innovations that seem to be the most essential of all. An enterprise with no intention to advance technologically will never become a market leader and will remain in the shadow of more tech savvy rivals. In this sense, technological innovation is a corporate lifeline and should top every priority list of business leaders.

Regrettably, most Chinese enterprises have yet to embrace innovations in technology, as is proved by recent statistics that R&D outlays only account for an average 0.39 percent of sales for large and medium-sized enterprises and 0.6 percent for hi-tech start-ups, way down when compared to input by companies in developed economies. Confined by the lack of core technologies or proprietary intellectual property rights, many local enterprises simply rely on cheap labor and a huge consumption of resources to win over the market. According to a study, local DVD manufacturers only make $1 profit per unit overseas; of the millions of cars produced in the country each year, Chinese models account for only 10 percent; and in the pharmaceutical industry, an overwhelming 97 percent of the chemicals are imitations or drugs patented abroad. Embarrassing though they may be, these figures serve as a wake-up call to the indifferent attitude toward corporate technological innovation.

On a brighter note, a growing number of Chinese enterprises have awakened to the value and urgency of technological innovation, and efforts have been made to speed up this process. The government is also pitching in to help. Chinese Minister of Finance Jin Renqing has recently announced that his ministry would encourage corporate technological innovations by providing tax holidays, and other favorable fiscal and administrative policies over the next five years.

Not surprisingly, private enterprises have emerged as a new and vital player in the rising tide of technological innovation. This may be attributed in part to their status: small and weak, short of capital and talents, under greater pressure and therefore more market-oriented. As a recent survey by the All-China Federation of Industry and Commerce has disclosed, private enterprises are responsible for 66 percent of the nation's patents, 74 percent of technological innovations and over 82 percent of new products developed. In 2005, 17 percent of the annual national science and technology awards went to hi-tech businesses in the private sector, and the same honors to private enterprises accounted for more than 20 percent last year.