China still has a long way to go toward its goal of becoming an "innovation-oriented economy" by 2020, and what it wants most is a better return on its fast-growing investments on research and development, the Organization for Economic Cooperation and Development (OECD) said in a report yesterday.

In its first review of China's innovation system, which was prepared in collaboration with the Ministry of Science and Technology, the 30-member group of developed economies said China has enjoyed a spectacular rise in its hi-tech exports in recent years, but these exports mainly originate from foreign-owned enterprises.

The share of hi-tech in China's total exports increased from 5 percent in the early 1990s to more than 30 percent in 2005, and these exports are heavily concentrated in office machinery, TV, radio and communication equipment. Being relatively weak are exports such as pharmaceuticals.