The State Council, or cabinet, said 2.5 percent of gross domestic product (GDP) would be allocated to spending on research and development over the next 15 years.

China's expenditure on research and development was 1.23 percent of GDP in 2002 and 0.83 percent in 1999, according to state media.

The plan, reported by the official Xinhua news agency, aims to make China one of the world's top five countries in scientific and technological development by 2020.

The government will not only allocate more money but also encourage all segments of society, including companies, to put emphasis on research and development.

by 2020, science and technology innovations will contribute 60 percent or more to the country's overall development, according to the ambitious plan.

The country's reliance on foreign technology will decline to 30 percent or lower by that time.

The number of patents granted to Chinese nationals and the introduction of their academic essays are expected to rank the country among the top five in the world, the plan says.

Priority will be given to research that can benefit economic and social development and national security, and which is capable of leading future high-tech development.

Ten types of research will be targetted, including life sciences and diseases, the impact of human activities on the global environment, global change, and research on the formation, forecast and control of disasters.

China currently manufactures and exports mostly low-return products consumed by many countries, including clothes, shoes and toys.

But the government is keenly aware of the need to boost the value of its exports in the longrun and to do so requires a shift towards innovation.

The country has already had some success in developing products such as household appliances, but still relies on imports for a host of high-tech needs from commercial airplanes to supercomputers and medical equipment.

The country, however, faces many challenges including an authoritarian political system criticized for sometimes stifling its best minds.

Its universities, laboratories and government research centers are also hierarchically structured, leaving little room for young bright minds to challenge seniority.

Many of the country's brightest minds have flocked overseas and, despite efforts to lure them back, salaries and the work environment are not competitive.

Under the plan, China will push large enterprises to set up research and development institutes. They will be enticed to spend more on research and development by offering them incentives such as tax breaks.

Chinese companies now have a reputation of copying others' work rather than coming up with their own creations, as the demand to turn a quick profit is stronger than the demand to get a patent.

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