Innovation zone to be set up in central China

The goal is to trial policies aimed at preventing talent loss in state-owned enterprises and financing difficulties, said Wang Jianqun, vice president of the zone's Strategic Research Institute.

The State Council approved Donghu Development Zone in Wuhan, capital of Hubei, last month as the second national innovation demonstration zone after Zhongguancun Science Park in Beijing, said Wang.

Donghu Development Zone, covering 80 square kilometers, has attracted 748 million U.S. dollars of foreign investment and 15.63billion yuan (2.29 billion U.S. dollars) of domestic investment since it opened in 1988.

Despite the budding success of many companies in Donghu Development Zone, others were crippled by a lack of funding, said Qin Zunwen, of Hubei Provincial Academy of Social Sciences, Kazinform cites Xinhua. See www.chinaview.cn for full version.