Chinese government has renewed and strengthened its leadership policy of scientific research programs, which observers say is an essential move to increase the country's innovative capacity.

The State Council, or Cabinet, issued a guideline for further economic reform early this week, which said the "state-led mechanism for technological innovations" would be strengthened.

Although the guideline did not give details, science and technology policy researchers saw this as the state's fresh commitment to major scientific research projects such as manned space missions and the development of large passenger aircraft.

"The state-led system was reaffirmed mainly for the government's 16 major scientific research projects," Duan Yibing, a Chinese Academy of Sciences researcher of science and technology policy and management, told Xinhua Thursday.

The government announced the launch of 16 major scientific research projects in 2006, including manned space missions, the next generation broadband wireless communications network, large-scale pressurized-water-reactor nuclear power stations and finding cures for AIDS and viral hepatitis.

"Because China is still relatively backward in science and technology research and the investment remains insufficient, the state's full support is key to some key projects," said Mei Yonghong, director of policy and regulation department with Ministry of Science and Technology.

The state-led system was adopted by Chinese government just after the founding of the People's Republic in 1950s. Limited human and material resources were then directed towards some highly classified research projects that single organization could not handle, such as nuclear and satellite system projects.

Initially the government introduced the policy as everything was government controlled then, and it was a good way to mobilize people and material resources quickly, Duan said.

The situation was changed after China started market-oriented reforms in early 1980s, as more business and private investment were channeled into the R&D sector. But government input is still key to major basic research projects which require enormous investment.

The experts agreed that following global economic downturn, China found it particularly crucial to seek a new sustainable growth pattern based on technological innovation, to reduce the country's dependence on low-skill labor and high energy consumption.

"Many developed countries are trying to shift their economic patterns by encouraging technological innovation after the international financial crisis," said Zhang Liqun, researcher with the State Council's Development and Research Center.

"China must catch up with them," Zhang said. "Technological innovations gained through major scientific research (backed by the government) would fundamentally accelerate the transformation of the economic growth pattern."

In the last 30 years China has depended heavily on foreign technologies in many key industries such as automobile and passenger aircraft manufacturing.

Chinese Premier Wen Jiabao said in a speech last November that "many countries are in a race to take the initiatives in innovating new technologies. China's economy and science must catch up with the developed nations."

"Strategic high-tech products can not be bought or introduced from other countries, neither can China always copy other's technologies. We need come up with more original innovations ourselves," Wen said.

Mei Yonghong said the state-led mechanism is not something unique to China.

"The U.S.'s Manhattan Project, Apollo Program, National Missile Defense project as well as Japan's hybrid automobile technology were all conducted through government-supported systems," Mei said. (Xinhua)