Guangdong, which has long led the country's economy since reform and opening-up in the late 1970s, is banking on innovation and technology to drive a new round of economic development in the years ahead, according to Zhu Xiaodan, governor of Guangdong.

"We are giving priority to the strategy of innovation-driven economic development to help us better upgrade traditional industries," Zhu says.

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Guangdong's budget for research and development surpassed 140 billion yuan last year, which accounted for 2.25 percent of its economy, according to a government work report, which Zhu delivered to deputies of the Guangdong People's Congress early this year.

Guangdong also took the top place in China for the number of effective invention patents and in applications for international patents under the Patent Cooperation Treaty, signaling an improved effort by local authorities to develop an innovation-driven economy, Zhu says.

"We have also introduced a number of innovative research teams and high-end personnel," he adds.

Solid economy

After years of efforts to use innovation and technology to drive its economy, Guangdong realized GDP growth of 8.5 percent year-on-year in 2013. The provincial economy surpassed $1 trillion last year.

Zhu says stable and healthy economic growth was achieved last year after a series of measures were introduced to cope with the downsizing trend.

"Domestic consumption, investment and foreign trade, which are the key factors that drive economic development, were well coordinated in Guangdong last year," Zhu says.

According to Zhu, Guangdong's retail sales of consumer goods rose by 12.2 percent year-on-year to 2.54 trillion yuan last year.

"We have developed new consumption growth engines, and modern management businesses have emerged in recent years, which helped to greatly boost domestic consumption," Zhu says.