Government Technology has an article on China's plans for transitioning from a "manufacturing center" and "sub-assembly and processing factory for other multi-national corporations" to an "Innovation Economy." Apparently, the government in China wants to generate money via "new inventions and innovations". Well, I wish the Chinese well, but anticipate that one of the lessons they'll realize, something which foreign companies have held on them for years: the importance of intellectual property rights. Hopefully, by creating their own intellectual property, the Chinese will respect and enforce that of others.

the Chinese government will authorize over 70 billion Yuan, or $8.5 billion, for investment in science and technology next year, and every year thereafter. This itself represents an increase of nearly 20 percent annually. The Chinese, however, have more in mind than R&D spending. A huge propaganda campaign is planned to educate the Chinese masses, to include online discussions and the formation of an "innovation demonstration team" to tour the country and promote the idea. The government is also talking of the need to reform the financial and tax systems to provide incentives for the growth of cutting-edge industries.