Chinese enterprises keep innovative mind

A focus on innovation is being highlited at this year's Boao Forum for Asia taking place right now in Hainan.  [Special coverage]

Innovation is one of the key questions being put to Chinese companies attending the Boao Forum.

Ronald Coase, Professor Emeritus at the University of Chicago Law School and winner of Nobel Prize in Economics, asks why China has been less technologically innovative.

Edmund Phelps, US economist and winner of Nobel Prize in Economics, is suggesting Asian nations can innovate by stepping up the range and scale of projects to develop new products and methods.

Chinese businessmen have also recognized the need of being innovative.

Founder of Primavera Capital Group, Dr. Fred Hu says China is in a transitional period.

He says low-value and labor-intensive industries are going to struggle to survive, given increasing labor and land costs.

As such, he says Chinese companies have to expand their options.

"So, how should Chinese enterprises keep growing? Human resources and capital are the basic factors. Innovative environment is essential."

Peter Fung is the chair of KPMG Global China Practice.

"The global economy is not so good, as what we see in Cyprus and Greece. It's not clear about the future European economy. China has export a lot to global markets, so Chinese enterprises have to rethink for innovative strategies."

Chen Feng, President of Hainan Airlines, says the process of innovating and reforming the overall business structure here in China is going to be a long-term process.

"Innovation may take a long time. We have to admit that we are just at the beginning. There are many young people in China that are innovative, but there should be more."

Zhang Weiying with Peking University says its his belief better innovation among Chinese companies is going to come through better cooperation globally.

"Innovation is interdependent. In the future, innovation has many sources and labels. Chinese entrepreneurs are expected to be innovative, which means they are expected to create or start new industries."