China has made progress but needs to further raise its competitiveness

President Xi Jinping has repeatedly stressed since taking office that the Chinese economy must be driven by innovation, even though China's State Intellectual Property Office granted more patents than any other patent office in the world last year.

In 2012, 1.02 trillion yuan ($163.73 billion) was spent on research and development in China. With a great deal of inventions and the budget to support them, what is the nation doing incorrectly?