Backing up his bold words were figures that showed Chinese companies invested 4.23 trillion yuan (nearly $670 billion) on technical upgrades in the first seven months of the year, a 12.9 percent rise year-on-year, which accounted for over a third of total industrial investment.

Zhang said that such mighty spending is a clear indication that Chinese companies are now focusing more and more on innovation. Haier is a good example. It invested millions of yuan to make its factories Web-linked so that consumers could buy bespoke appliances.

Woetzel underlined, too, just how China's growing success in innovation will have far-reaching effects globally.

That its innovators had developed not only cutting-edge technology but a low-cost one, was already making a difference, he said. "Companies that cannot match China's cost, speed and global reach in their innovation efforts will be at a huge disadvantage."

McKinsey believes that in the next decade, the country has the potential to create what it called "a China effect" on innovation around the world. That initial impact, it said, could be "disruptive".

"Around the world, consumers could benefit from better goods at lower prices," it said.

With those last five words etched in my mind, I called my son. I told him that many countries are simply failing to keep pace with the Chinese investment in innovation, and as a result, they are finding the going tough. India is certainly making progress, but it still has a long way to go before it can catch up.