Domestic innovation re-shaping China's economy?

According to a recent Gartner report, innovation is re-shaping China’s economy. And this time it is supposed to come from domestic firms.

There are the technology innovators like Yulong which developed mobile phones that work with both GSM and CDMA networks;  the business model innovators like Focus Media who invented selling ads via LCDs; and even the operation innovators, like China Mobile who are able to maintain a 50% margin with a voice tariff below 0.03 cents per minute.

For the time being innovation is still not radical. Most business models and products are copied from firms in developed economies but pioneering days may be getting closer. Government policy has maintained a strong emphasis on innovation policy over the past decade. All is needed now is a critical mass of private sector players…